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Business Overview
−Removed: UniFirst Corporation, together with its subsidiaries, hereunder referred to as “we”, “our”, the “Company”, or “UniFirst”, is one of the leading providers of workplace uniforms and protective work wear clothing in North America.
+Added: We are one of the leading providers of workplace uniforms and protective clothing in North America.
We design, manufacture, personalize, rent, clean, deliver, and sell a wide range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, aprons and specialized protective wear, such as flame resistant and high visibility garments.
−Removed: We also rent and sell industrial wiping products, floor mats, facility service products and other non-garment items, and provide restroom and cleaning supplies and first aid cabinet services and other safety supplies as well as provide certain safety training to a variety of manufacturers, retailers and service companies.
−Removed: We serve businesses of all sizes across multiple industry sectors.
−Removed: Typical customers include automobile service centers and dealers, delivery services, food and general merchandise retailers, food processors and service operations, light manufacturers, maintenance facilities, restaurants, service companies, soft and durable goods wholesalers, transportation companies, healthcare providers and others who require employee clothing for image, identification, protection or utility purposes.
−Removed: We also provide our customers with restroom and cleaning supplies, including air fresheners, paper products and hand soaps.
−Removed: At certain specialized facilities, like nuclear operations, we also decontaminate and clean work clothes and other items that may have been exposed to radioactive materials and service special cleanroom protective wear and facilities.
−Removed: Typical customers for these specialized services include government agencies, research and development laboratories, high technology companies and utilities operating nuclear reactors.
−Removed: Headquartered in Wilmington, Massachusetts, we are a North American leader in the supply and servicing of uniform and workwear programs, as well as the delivery of facility service programs.
−Removed: Together with our subsidiaries, we also provide first aid and safety products, and manage specialized garment programs for the cleanroom and nuclear industries.
−Removed: We manufacture our own branded workwear, protective clothing, and floorcare products, as well as offer products from industry leading suppliers;
−Removed: and with 270 service locations, over 300,000 customer locations, and approximately 16,000 employee Team Partners, we outfit more than 2 million workers each business day.
+Added: We also rent and sell industrial wiping products, floor mats, facility service products and other non-garment items, and provides restroom and cleaning supplies and first aid cabinet services and other safety supplies as well as provide certain safety training, to a variety of manufacturers, retailers and service companies.
+Added: We serve businesses of all sizes across multiple industries and sectors.
+Added: We provide our products and services to over 300,000 customer locations in the U.S., Canada and Europe.
GAAP establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information of those segments to be presented in interim financial reports issued to shareholders.
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Our chief operating decision-maker is our Chief Executive Officer.
−Removed: We have six operating segments based on the information reviewed by our Chief Executive Officer:
+Added: Prior to May 31, 2025, we organized our business into six operating segments:
Rental and Cleaning, Canadian Rental and Cleaning, Manufacturing (“MFG”), Specialty Garments Rental and Cleaning (“Specialty Garments”), First Aid and Corporate.
−Removed: Rental and Cleaning and Canadian Rental and Cleaning operating segments have been combined to form the U.S.
−Removed: and Canadian Rental and Cleaning reporting segment.
−Removed: Refer to Note 15, “Segment Reporting”, of our Consolidated Financial Statements for our disclosure of segment information.
−Removed: and Canadian Rental and Cleaning reporting segment purchases, rents, cleans, delivers and sells, uniforms and protective clothing and non-garment items in the U.S.
−Removed: The operations of the U.S.
−Removed: and Canadian Rental and Cleaning reporting segment are referred to by us as our ‘industrial laundry operations’ and we refer to the locations related to this reporting segment as our ‘industrial laundries’.
−Removed: The MFG operating segment designs and manufactures uniforms and non-garment items primarily for the purpose of providing these goods to the U.S.
−Removed: and Canadian Rental and Cleaning reporting segment.
−Removed: The amounts reflected as revenues of MFG are primarily generated when goods are shipped from our manufacturing facilities, or subcontract manufacturers, to our other locations.
−Removed: These intercompany revenues are recorded at a transfer price which is typically in excess of the actual manufacturing cost.
−Removed: Products are carried in inventory and subsequently placed in service and amortized at this transfer price.
−Removed: On a consolidated basis, intercompany MFG revenues and MFG income are eliminated and the carrying value of inventories and rental merchandise in service is reduced to the manufacturing cost.
−Removed: Income before income taxes from MFG, net of the intercompany MFG elimination, offsets the merchandise amortization costs incurred by the U.S.
−Removed: 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 our manufacturing cost.
−Removed: The Corporate operating segment consists of costs associated with our distribution center, sales and marketing, information systems, engineering, materials management, manufacturing planning, finance, budgeting, human resources, other general and administrative costs and interest expense.
−Removed: The revenues generated from the Corporate operating segment represent
−Removed: certain direct sales made directly from our distribution center.
−Removed: The products sold by this operating segment are the same products rented and/or sold by the U.S.
−Removed: and Canadian Rental and Cleaning reporting segment.
−Removed: In the segment disclosures in Note 15, “Segment Reporting”, of our Consolidated Financial Statements, no assets or capital expenditures are presented for the Corporate operating segment as no assets are allocated to this operating segment in the information reviewed by our chief executive officer.
−Removed: However, depreciation and amortization expense related to certain assets are reflected in income from operations and income before income taxes for the Corporate operating segment.
−Removed: The assets that give rise to this depreciation and amortization are included in the total assets of the U.S.
−Removed: and Canadian Rental and Cleaning reporting segment as this is how they are tracked and reviewed by us.
−Removed: We refer to our U.S.
+Added: Rental and Cleaning and Canadian Rental and Cleaning operating segments were previously combined to form the U.S.
+Added: and Canadian Rental and Cleaning reporting segment, and as a result, we had five reporting segments.
+Added: We previously referred to our U.S.
and Canadian Rental and Cleaning, MFG, and Corporate segments combined as our “Core Laundry Operations.”
−Removed: 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.
−Removed: The First Aid operating segment sells first aid cabinet products and services and other safety supplies as well as maintains wholesale distribution and pill packaging operations for non-prescription medicines.
−Removed: Approximately 88.1% of our revenues in fiscal 2024 were derived from our U.S.
−Removed: and Canadian Rental and Cleaning and Corporate segments.
+Added: Beginning with the fourth quarter of 2025, we reorganized our business into three reportable operating segments based on the information reviewed by our Chief Executive Officer:
+Added: Uniform & Facility Service Solutions, First Aid & Safety Solutions and Other.
+Added: Refer to Item 1, “ Business ” and Note 15, “ Segment Reporting ” to our Consolidated Financial Statements for our disclosure of segment information.
+Added: We have recast certain prior period segment results to conform with the current presentation.
+Added: The Uniform & Facility Service Solutions segment consolidates the former Corporate, MFG and U.S.
+Added: and Canadian Rental and Cleaning operating segments and includes our cleanroom operations, which was previously part of the Specialty Garments reporting segment.
+Added: The Uniform & Facility Service Solutions reporting segment designs, manufactures, purchases, rents, cleans, delivers and sells, uniforms and protective clothing and non-garment items in the U.S.
+Added: Certain operations of the Uniform & Facility Service Solutions reporting segment are referred to by the Company as “industrial laundry operations” and we refer to the locations related to this reporting segment as our “industrial laundries”.
+Added: Additionally, the Uniform & Facility Service Solutions consists of our distribution center, sales and marketing, information systems, engineering, materials management, manufacturing planning, finance, budgeting, human resources, other general and administrative costs and interest expense.
+Added: The segment, through the Company’s cleanroom operations, also purchases, rents, cleans, delivers and sells specialty garments and non-garment items primarily for cleanroom applications and provides cleanroom cleaning at limited customer locations.
+Added: We renamed our First Aid reporting segment as the First Aid & Safety Solutions reporting segment to better reflect the scope of services and products offered.
+Added: The First Aid & Safety Solutions reporting segment sells first aid cabinet services and other safety supplies, provides certain safety training and maintains wholesale distribution and pill packaging operations for non-prescription medicines.
+Added: The Other reporting segment currently consists of our nuclear business, which was previously part of the Specialty Garments reporting segment with our cleanroom operations.
+Added: The segment purchases, rents, cleans, delivers and sells, specialty garments and non-garment items primarily for nuclear applications.
+Added: Approximately 91.2% of our revenues in fiscal 2025 were derived from our Uniform & Facility Service Solutions segment.
A key driver of this business is the number of workers employed by our customers.
Our revenues are directly impacted by fluctuations in these employment levels.
−Removed: Revenues from Specialty Garments, which accounted for approximately 7.5% of our fiscal 2024 revenues, increase during outages and refueling by nuclear power plants, as garment usage increases at these times.
−Removed: First Aid represented approximately 4.4% of our total revenues in fiscal 2024.
+Added: First Aid & Safety Solutions represented approximately 4.7% of our total revenues in fiscal 2025.
+Added: Revenues from our Other segment, which accounted for approximately 4.1% of our fiscal 2025 revenues, increases during outages and refueling by nuclear power plants, as garment usage increases at these times.
Critical Accounting Policies and Estimates
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Our revenues do not include taxes we collect from our customers and remit to governmental authorities.
−Removed: Costs to Obtain a Contract
−Removed: We defer commission expenses paid to employee-partners when the commissions are deemed to be incremental for obtaining the route servicing customer contract.
−Removed: The deferred commissions are amortized on a straight-line basis over the expected period of benefit, which is generally the estimated life of the customer relationship.
−Removed: We review the deferred commission balances for impairment on an ongoing basis.
−Removed: Deferred commissions are classified as current or non-current based on the timing of when we expect to recognize the expense.
Inventories and Rental Merchandise in Service
Our inventories are stated at the lower of cost or net realizable value, net of any reserve for excess and obsolete inventory.
+Added: 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 our customers or used in our rental operations.
+Added: We monitor canceled or terminated contracts (and reductions in customer orders) as part of its ongoing assessment of realizability.
+Added: If such cancellations or reductions indicate that inventory held for those contracts may not be sold or used, additional reserves or write-downs are recorded.
Historical inventory usage and current revenue trends are considered in estimating both excess and obsolete inventories.
−Removed: If actual product demand and market conditions are less favorable than the amount we projected, additional inventory write-downs may be required.
−Removed: We use the first-in, first-out method to value our inventories, which primarily consist of finished goods.
+Added: If actual product demand and market conditions are less favorable than those projected by management, additional inventory write-downs may be required.
+Added: We use the first-in, first-out (“FIFO”) method to value our inventories, which primarily consist of finished goods.
Rental merchandise in service is being amortized on a straight-line basis over the estimated service lives of the merchandise, which range from six to thirty-six months.
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A decline in our market capitalization and/or deterioration in general economic conditions could negatively and materially impact our assumptions and assessment of the fair value of our business.
−Removed: If general economic conditions or our financial performance deteriorate, we may be required to record a goodwill impairment charge in the future which could have a material impact on our financial condition and results of operations.
+Added: If general economic conditions or our financial performance
+Added: deteriorate, we may be required to record a goodwill impairment charge in the future which could have a material impact on our financial condition and results of operations.
Property, plant and equipment, and definite-lived intangible assets are depreciated or amortized over their useful lives.
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Our liabilities are based on our estimates, and, while we believe that our accruals are adequate, the ultimate liability may be significantly different from the amounts recorded.
−Removed: In certain cases where partial insurance coverage exists, we must estimate the portion of the liability that will be covered by existing insurance policies to arrive at
−Removed: our net expected liability.
+Added: In certain cases where partial insurance coverage exists, we must estimate the portion of the liability that will be covered by existing insurance policies to arrive at our net expected liability.
Receivables for insurance recoveries are recorded as assets, on an undiscounted basis.
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Refer to Note 11, “ Commitments and Contingencies ”, of our Consolidated Financial Statements for additional discussion and analysis.
−Removed: Asset Retirement Obligations
−Removed: GAAP, asset retirement obligations generally apply to legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or the normal operation of a long-lived asset.
−Removed: Current accounting guidance requires that we recognize asset retirement obligations in the period in which they are incurred if a reasonable estimate of fair value can be made.
−Removed: The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset.
−Removed: We have recognized as a liability the present value of the estimated future costs to decommission our nuclear laundry facilities in accordance with U.S.
−Removed: We depreciate, on a straight-line basis, the amount added to property, plant and equipment and recognize accretion expense in connection with the discounted liability over the various remaining lives which range from approximately one to twenty-one years.
−Removed: Our estimated liability has been based on historical experience in decommissioning nuclear laundry facilities, estimated useful lives of the underlying assets, external vendor estimates as to the cost to decommission these assets in the future, and federal and state regulatory requirements.
−Removed: The estimated current costs have been adjusted for the estimated impact of inflation at 3% per year.
−Removed: The liability has been discounted using credit-adjusted risk-free rates that range from approximately 7.0% to 7.5%.
−Removed: Revisions to the liability could occur due to changes in the estimated useful lives of the underlying assets, estimated dates of decommissioning, changes in decommissioning costs, changes in federal or state regulatory guidance on the decommissioning of such facilities, or other changes in estimates.
−Removed: Changes due to revisions in our estimates are recognized by adjusting the carrying amount of the liability and the related long-lived asset if the assets are still in service or charged to expense in the period if the assets are no longer in service.
−Removed: Supplemental Executive Retirement Plan and Pension Plan
−Removed: We recognize pension expense on an accrual basis over our employees’ estimated service periods.
−Removed: Pension expense is generally independent of funding decisions or requirements.
−Removed: The calculation of pension expense and the corresponding liability requires us to use a number of critical assumptions, including the expected long-term rates of return on plan assets, the assumed discount rate, the assumed rate of compensation increases and life expectancy of participants.
−Removed: Changes in our assumptions can result in different expense and liability amounts, and future actual expense can differ from these assumptions.
−Removed: Pension expense increases as the expected rate of return on pension plan assets decreases.
−Removed: Future changes in plan asset returns, assumed discount rates and various other factors related to the participants in our pension plans will impact our future pension expense and liabilities.
−Removed: We cannot predict with certainty what these factors will be in the future.
We compute income tax expense by jurisdiction based on our operations in each jurisdiction.
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For financial reporting purposes, fiscal 2025 and 2024 consisted of 52 weeks and 53 weeks, respectively.
−Removed: Effects of Inflation and Adverse Economic Conditions
+Added: Factors Affecting our Business
In general, we believe that our results of operations are not dependent on moderate changes in the inflation rate.
−Removed: Historically, we have been able to manage the impacts of more significant changes in inflation rates through our customer relationships, customer agreements that generally provide for price increases and continued focus on improvements of operational productivity.
−Removed: However, the inflationary environment in recent years had a negative impact on our margins, including as a result of increased energy costs for our vehicles and our plants, as well as increasing wages in the labor markets in which we compete.
+Added: Historically, we have been able to manage the impacts of more significant changes in inflation rates through our customer relationships, customer agreements that generally provide for price increases and continued focus on improvements in operational productivity.
+Added: However, the inflationary environment in recent years had a negative impact on our margins, including increased energy costs for our vehicles and our plants, and increased wages in the labor markets in which we compete.
While inflation has moderated recently, a period of sustained inflation could pressure our margins in future periods.
−Removed: In addition, the U.S.
−Removed: Federal Reserve rapidly increased its benchmark interest rate from 2021 through 2023 in response to sustained elevated inflation and has only modestly reduced that rate thus far 2024.
Adverse economic conditions resulting from inflationary pressures, U.S.
−Removed: Federal Reserve actions, including elevated interest rates and/or increases in interest rates, geopolitical issues or otherwise are difficult to predict and may have a material adverse impact on our business, results of operations and financial condition.
+Added: Federal Reserve actions, including elevated interest rates and/or increases in interest rates, geopolitical issues, U.S.
+Added: and foreign tariffs or other impositions on imported goods or other causes are difficult to predict and may have a material adverse impact on our business, results of operations and financial condition.
+Added: We are also monitoring and evaluating the potential impact of recently announced new or increased tariffs on imported goods.
+Added: If any such tariffs were to increase our cost or difficulty of obtaining raw materials or products from suppliers and we were unable to mitigate the impacts of any such increased costs or difficulties, it could have a material adverse impact on our business and our results of operations.
+Added: In addition, any such tariffs or other impositions on imported goods could have a negative adverse impact on economic conditions generally and on the businesses of our customers, including decreases in wearer levels at our customers, which could have a material adverse impact on our business and our results of operations.
Please see Part I, Item 1A.
−Removed: “Risk Factors” in this Annual Report on Form 10-K for an additional discussion of risks and potential risks of inflation and adverse economic conditions on our business, financial condition and results of operations.
+Added: “ Risk Factors ” in this Annual Report on Form 10-K for an additional discussion of risks and potential risks of inflation, elevated interest rates and/or increases in interest rates, geopolitical issues, U.S.
+Added: and foreign tariffs or other impositions on imported goods and adverse economic conditions on our business, financial condition and results of operations.
Results of Operations
The following table presents certain selected financial data, including the percentage of revenues represented by each item, for fiscal years 2025 and 2024.
−Removed: For discussion of fiscal 2023 results compared to fiscal 2022 results, see the Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” within our Annual Report on Form 10-K for the fiscal year ended August 26, 2023, filed with the SEC on October 26, 2023.
+Added: For discussion of fiscal 2024 results compared to fiscal 2023 results, see the Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” within our Annual Report on Form 10-K for the fiscal year ended August 31, 2024, filed with the SEC on November 14, 2024.
(In thousands, except for percentages)
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(In thousands)
−Removed: Segment Information
−Removed: and Canadian Rental and Cleaning
−Removed: Net intercompany MFG elimination
−Removed: Core Laundry Operations
−Removed: Specialty Garments
+Added: Uniform & Facility Service Solutions
+Added: First Aid & Safety Solutions
Total consolidated revenues
Operating income (loss)
−Removed: and Canadian Rental and Cleaning
−Removed: Net intercompany MFG elimination
−Removed: Core Laundry Operations
−Removed: Specialty Garments
+Added: Uniform & Facility Service Solutions
+Added: First Aid & Safety Solutions
Total operating income
−Removed: We derive our revenues through the design, manufacture, personalization, rental, cleaning, delivering, and selling of a wide range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks and aprons and specialized protective wear, such as flame resistant and high visibility garments.
−Removed: We also rent industrial wiping products, floor mats, facility service products, other non-garment items, and provide restroom and cleaning supplies and first aid cabinet services and other safety supplies, to a variety of manufacturers, retailers and service companies.
−Removed: Cost of revenues include the amortization of rental merchandise in service and merchandise costs related to direct sales as well as labor and other production, service and delivery costs, and distribution costs associated with operating our Core Laundry Operations, Specialty Garments facilities, and First Aid locations.
+Added: Our segment results for the fiscal year 2025 presented in this Annual Report on Form 10-K reflect our modified segments.
+Added: Our prior period segment results presented in this Annual Report on Form 10-K have been recast to conform with the current presentation of our modified segments.
+Added: We derive our revenues from the services described under “ Business Overview ” above.
+Added: Cost of revenues include the amortization of rental merchandise in service and merchandise costs related to direct sales as well as labor and other production, service and delivery costs, and distribution costs associated with operating our Uniform & Facility Service Solutions operations, Other segment facilities, and First Aid & Safety Solutions locations.
Selling and administrative costs include costs related to our sales and marketing functions as well as general and administrative costs associated with our corporate offices, non-operating environmental sites and operating locations including information systems, engineering, materials management, manufacturing planning, finance, budgeting, and human resources.
−Removed: Our operating results are also directly impacted by the costs of the gasoline used to fuel our vehicles, the cost of electricity for our electric vehicles and the natural gas used to operate our plants.
−Removed: Our operating margins have been, and may continue to be, adversely impacted by volatility in energy prices.
−Removed: In addition, as described above, the inflationary environment in recent years had a negative impact on our margins.
−Removed: While inflation has moderated recently, a period of sustained inflation could pressure our margins in future periods.
−Removed: Our business is subject to various state and federal regulations, including employment laws and regulations, minimum wage requirements, overtime requirements, working condition requirements, citizenship requirements, healthcare insurance mandates and other laws and regulations that impact our labor costs.
−Removed: Labor costs have increased recently as a result of increases in state and local minimum wage levels as well as the overall impact of wage pressure as the result of a low unemployment environment.
A portion of our sales is derived from international markets, including Canada.
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In addition, a weaker Canadian dollar increases the costs to our Canadian operations of merchandise and other operational inputs that are sourced from outside Canada, which has the effect of reducing the operating margins of our Canadian business if we are unable to recover these additional costs through price adjustments with our Canadian customers.
−Removed: In fiscal 2024 and 2023, foreign currency fluctuations impacted our consolidated revenues negatively by a nominal percentage and 0.6%, respectively.
+Added: In fiscal 2025 and 2024, foreign currency fluctuations impacted our consolidated revenues negatively by 0.1% and a nominal percentage, respectively.
These impacts were primarily driven by fluctuations in the Canadian dollar.
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In fiscal 2018, we initiated a multiyear CRM project to further develop, implement and deploy a third-party software application we licensed.
−Removed: This new solution is intended to improve functionality, capability and information flow as well as increase automation for our operations in servicing our customers.
+Added: This new solution improves functionality, capability and information flow as well as increases automation for our operations in servicing our customers.
We began deployment of our new CRM project during the second half of fiscal 2021 and concluded the deployment to our U.S.
locations in the first quarter of fiscal 2024.
−Removed: We are depreciating this system over a 10-year life and recognized $3.6 million and $3.3 million of amortization expense in fiscal 2024 and fiscal 2023, respectively.
−Removed: In fiscal 2022, we initiated a multiyear ERP project that we plan to continue through 2027, with early phases focused on master data management and finance capabilities followed by subsequent phases with a strong focus on supply chain and procurement automation and technology.
−Removed: We believe that this initiative will become the core of the UniFirst systems technology footprint and will integrate and complement the capabilities of the CRM system.
−Removed: We expect the ERP system and the new supply chain and procurement capabilities that it will provide to enable lower operating costs and reduced customer churn.
+Added: We are depreciating this system over a 10-year life and recognized $4.1 million and $3.6 million of amortization expense in fiscal 2025 and 2024, respectively.
+Added: In fiscal 2022, we initiated a multiyear ERP project that we plan to continue through 2027, with early phases focused on master data management and finance capabilities followed by subsequent phases with a strong focus on supply chain, procurement, automation and technology.
+Added: We believe that this initiative will become the core of our systems technology footprint and will integrate and complement the capabilities of the CRM system.
+Added: We expect the ERP system and the new supply chain and procurement capabilities that it will provide to enable lower operating costs and reduce customer churn.
Such benefits are expected to be delivered through enhanced inventory utilization and vendor management, improved response times to customer orders and more efficient back-end processes.
−Removed: These capabilities will allow us to more effectively respond to and mitigate the types of supply chain challenges that we experienced during the COVID-19 pandemic and inflationary environment of 2022 and 2023.
+Added: As of fiscal 2025, we capitalized $45.3 million related to our ERP project.
We refer to our CRM and ERP projects together as our “Key Initiatives”.
−Removed: For fiscal 2024, we expensed $11.8 million of non-recurring costs related to our Key Initiatives, primarily relating to our ERP project.
−Removed: As of August 31, 2024, we capitalized $47.2 million related to our CRM project and $18.9 million related to our ERP project.
−Removed: On October 24, 2023, our Board of Directors authorized a share repurchase program to repurchase from time to time up to $100.0 million of our outstanding shares of Common Stock.
−Removed: Repurchases made under the new program, if any, will be made in either the open market or in privately negotiated transactions.
−Removed: The timing, manner, price and amount of any repurchases will depend on a variety of factors, including economic and market conditions, our stock price, corporate liquidity requirements and priorities, applicable legal requirements and other factors.
−Removed: The share repurchase program may be funded using available cash or capacity under our Credit Agreement (as defined below) and may be suspended or discontinued at any time.
−Removed: On October 29, 2024, our Board of Directors declared increased quarterly cash dividends of $0.350 per share of Common Stock and $0.280 per share of Class B Common Stock, up from $0.33 and $0.264 per share, respectively.
−Removed: Both dividends are payable on January 3, 2025 to shareholders of record as of December 6, 2024.
−Removed: The amount and timing of any future dividend payment is subject to the approval of our Board of Directors each quarter.
−Removed: During fiscal 2024, we repurchased 139,556 shares for an average price of $170.40.
−Removed: During fiscal 2023, we did not repurchase any shares.
−Removed: As of August 31, 2024, we had $76.2 million remaining under our existing share repurchase program.
−Removed: On March 13, 2023, we completed our acquisition of the business and certain real estate assets of Clean from Clean Holdco, Inc.
−Removed: and certain of its affiliates for an aggregate purchase price of approximately $299.1 million, net of cash acquired.
−Removed: Clean was a uniform, workwear and facility service program provider with 11 locations covering Missouri, Illinois, Arkansas, Kansas and Oklahoma.
−Removed: The results of operations from Clean were included in our results under the U.S.
−Removed: and Canadian Rental and Cleaning segment subsequent to the acquisition date of March 13, 2023.
−Removed: We paid for the acquisition of Clean with cash on hand and borrowings under the Credit Agreement, which we repaid in full during the third quarter of fiscal 2023.
The following section of this Annual Report on Form 10-K generally discusses fiscal 2025 and fiscal 2024 items and year-to-year comparisons between fiscal 2025 and fiscal 2024.
−Removed: Discussions of fiscal 2022 items and year-to-year comparisons between fiscal 2023 and fiscal 2022 that are not included in this Annual Report on Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended August 26, 2023, which was filed with the SEC on October 26, 2023.
+Added: Discussions of fiscal 2023 items and year-to-year comparisons between fiscal 2024 and fiscal 2023 that are not included in this Annual Report on Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended August 31, 2024, which was filed with the SEC on November 14, 2024.
Fiscal Year Ended August 30, 2025 Compared with Fiscal Year Ended August 31, 2024
(In thousands, except percentages)
−Removed: Core Laundry Operations
−Removed: Specialty Garments
+Added: Uniform & Facility Service Solutions
+Added: First Aid & Safety Solutions
Total consolidated revenues
−Removed: The increase in consolidated revenues of 8.7% during fiscal 2024 compared to the prior year was due primarily to growth in our Core Laundry Operations of 9.1%.
−Removed: The increase in our Core Laundry Operations was due to organic growth of 4.6%, growth from fiscal 2024's extra week of 2.1% and acquisition related growth of 2.5%.
−Removed: Partially offsetting this growth was the effect of Canadian dollar exchange rate changes on our revenues of (0.1)%.
−Removed: The Core Laundry Operations strong organic growth rate was mostly the result of solid new account sales and improved pricing with our customers.
−Removed: The impact on our revenues from acquisitions was the result of our acquisition of Clean, which was completed on March 13, 2023.
−Removed: Specialty Garments revenues for fiscal 2024 increased slightly compared to the prior year due primarily to growth from fiscal 2024's extra week of 1.9%, and growth in both our cleanroom and U.S.
+Added: In fiscal 2025, our consolidated revenues increased by $4.9 million from the comparable period in 2024, or 0.2%.
+Added: Fiscal 2025 included 52 weeks of operations, while fiscal 2024 included 53 weeks.
+Added: Excluding the impact of the extra week, consolidated organic growth was 1.8%.
+Added: The effect of the Canadian dollar exchange rate resulted in changes in our revenues of (0.2)%.
+Added: year-over-year increase was primarily driven by strong organic growth within our Uniform & Facility Service Solutions segment, reflecting solid new account sales and improved customer pricing.
+Added: Although Uniform & Facility Service Solutions revenues decreased slightly to $2.219 billion in fiscal 2025 from $2.224 billion in fiscal 2024, or (0.2)%, this decline was entirely attributable to the impact of the extra week in fiscal 2024.
+Added: On a normalized basis, excluding the effect of the additional week, Uniform & Facility Service Solutions revenues increased $36.4 million, representing organic growth of 1.7%.
+Added: First Aid & Safety Solutions revenues for fiscal 2025 increased 7.8% compared to the prior fiscal year.
+Added: This increase was driven by our continued investment in expanding the first aid van business, which accounted for growth of 10.1%.
+Added: Excluding the estimated impact of the extra week of operations in fiscal 2024, First Aid & Safety Solutions revenues increased 10.0% compared to fiscal 2024.
+Added: Other segment revenues for fiscal 2025 increased 2.1% compared to the prior year due primarily to growth in our European and U.S.
nuclear operations.
−Removed: First Aid revenues for fiscal 2024 increased 12.1% compared to the prior fiscal year.
−Removed: This increase was driven by our continued investment in expanding the first aid van business, which accounted for growth of 10.1%, and growth from fiscal 2024's extra week of 2.2%.
Cost of revenues
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% of Revenues
−Removed: The increase in consolidated cost of revenues of 6.7% during fiscal 2024 compared to the prior fiscal year was due primarily to the impact of the revenue growth mentioned above.
−Removed: While overall cost of revenues increased, cost of revenues decreased as a percentage of revenue due primarily to lower merchandise costs, payroll and other operating input costs.
+Added: The decrease in consolidated cost of revenues of 2.4% during fiscal 2025 compared to the prior fiscal year was due primarily to the impact of the revenue change discussed above.
+Added: Also contributing to the decrease were the effects of the one fewer week of operations in fiscal 2025 compared to fiscal 2024, and lower merchandise and production payroll costs as a percentage of revenues.
Selling and administrative expenses
2 unchanged sentences
% of Revenues
−Removed: The increase in selling and administrative costs of 5.2% during fiscal 2024 compared to the prior fiscal year was due primarily to continued investments we have made in our corporate capabilities over the last year and incremental costs from the Clean acquisition as compared to the prior year.
−Removed: In addition, there was an extra week of spend in the current year.
−Removed: While overall selling and administrative costs increased, selling and administrative costs as a percentage of revenues decreased due primarily to a decrease in Key Initiatives expenses from $33.6 million in fiscal 2023 to $11.8 million in fiscal 2024.
−Removed: In addition, we incurred $3.0 million of Clean acquisition-related costs in fiscal 2023.
−Removed: We also benefited from lower theft losses and a decrease in healthcare claims expenses compared to the prior year.
+Added: The increase in selling and administrative costs of 8.1% during fiscal 2025 compared to the prior fiscal year was due primarily to continued investments we have made in our sales organization capabilities to support our digital transformation over the last year.
+Added: The increase also reflects approximately $12.8 million in higher healthcare claims compared to the prior fiscal year and approximately $5.7 million of advisory and legal expenses related to a strategic matter and an employee matter, respectively.
+Added: We expensed $6.8 million and $11.8 million of non-recurring costs related to our Key Initiatives, primarily relating to our ERP project, in fiscal 2025 and fiscal 2024, respectively.
Depreciation and amortization
2 unchanged sentences
% of Revenues
−Removed: Depreciation and amortization expense increased by 16.7% in fiscal 2024 as compared to the prior fiscal year due primarily to continued investment in our systems and technology capabilities and infrastructure to support our future growth.
−Removed: Also contributing to this increase was higher depreciation and amortization of $8.0 million related to the Clean acquisition that occurred early in the third quarter of fiscal 2023.
−Removed: Total depreciation and amortization for Clean was $14.7 million and $6.7 million in fiscal 2024 and 2023, respectively, of which $9.8 million and $4.6 million were intangibles amortization, respectively.
−Removed: In addition, there was an extra week of depreciation and amortization in the current year.
+Added: Depreciation and amortization expense in fiscal 2025 remained relatively consistent compared to the prior fiscal year.
+Added: Depreciation increased approximately $2.0 million, primarily reflecting continued investment in systems, technology capabilities, and infrastructure to support future growth.
+Added: Amortization decreased approximately $3.0 million, due primarily to lower amortization related to the acquisition of Clean Uniform in fiscal 2023.
+Added: On a combined basis, depreciation and amortization decreased $1.0 million, or 0.8%, year over year.
+Added: The comparison to the prior year is also affected by the additional week of operations included in fiscal 2024, which modestly elevated the prior-year expense.
Operating Income
1 unchanged sentence
(In thousands, except percentages)
−Removed: Core Laundry Operations
−Removed: Specialty Garments
+Added: Uniform & Facility Service Solutions
+Added: First Aid & Safety Solutions
Operating income
3 unchanged sentences
Interest income, net
−Removed: Other expense, net
+Added: Other expense (income), net
Total other income, net
−Removed: Other income, net, in fiscal 2024 increased as compared to the prior year due primarily to $2.1 million of interest income recorded in fiscal 2024 as a result of a tax dispute we favorably resolved.
−Removed: This was partially offset by lower interest income resulting from lower cash reserves subsequent to the acquisition of Clean in our third fiscal quarter of 2023.
+Added: Total other income, net in fiscal 2025 increased as compared to the prior fiscal year primarily due to $2.8 million in proceeds from the sale of a property.
+Added: In addition, improved operating cash flows over the past few years have led to increased cash reserves, which in turn have also generated higher interest income.
Provision for income taxes
2 unchanged sentences
Effective income tax rate
−Removed: The decrease in the effective tax rate for fiscal 2024 as compared to the corresponding period year was due primarily to the release of certain tax reserves and a U.S.
−Removed: state legislative change enacted during the first quarter of fiscal 2024.
+Added: The increase in the effective tax rate for fiscal 2025 compared to the prior fiscal year was to an increase in taxable permanent differences in fiscal 2025.
Liquidity and Capital Resources
Cash and cash equivalents, and short-term investments totaled $209.2 million as of August 30, 2025, an increase of $34.1 million from $175.1 million as of August 31, 2024.
−Removed: The increase in cash and cash equivalents and short-term investments was largely driven by our cash flows from operating activities.
+Added: The increase in cash and cash equivalents and short-term investments was largely driven by our enhanced cash flows from operating activities.
We generated $296.9 million and $295.3 million in cash from operating activities in fiscal 2025 and 2024, respectively.
1 unchanged sentence
During fiscal 2025, we continued to invest in our business with capital expenditures totaling $154.3 million.
−Removed: Pursuant to the share repurchase program approved by our Board of Directors on October 24, 2023, we repurchased 139,556 shares of our Common Stock for an aggregate of approximately $23.8 million during fiscal 2024.
+Added: On April 8, 2025, our Board of Directors authorized a new share repurchase program to repurchase up to $100.0 million of our outstanding shares of Common Stock, inclusive of the amount which remained available under the existing share repurchase program approved in 2023.
+Added: Pursuant to the share repurchase program, we repurchased 402,415 shares of our Common Stock for an aggregate of approximately $70.9 million during fiscal 2025, representing approximately 2.2% of our outstanding shares as of August 30, 2025.
+Added: As of August 30, 2025, we had $40.6 million remaining to repurchase shares under the share repurchase program.
We believe, although there can be no assurance, that our current cash and cash equivalents balances, our cash generated from future operations and amounts available under our Credit Agreement (as defined below) will be sufficient to meet our current anticipated working capital and capital expenditure requirements for at least the next 12 months and will help us manage the impacts of inflation and address related liquidity needs.
11 unchanged sentences
Net Cash Provided by Operating Activities
−Removed: The net cash provided by operating activities in fiscal 2024 increased as compared to fiscal 2023 due to our improved profitability and benefit of depreciation and amortization as well as positive impacts from rental merchandise in service of $31.4 million, receivables of $22.2 million and accrued liabilities of $9.7 million.
−Removed: These increases were partially offset by a decrease in accounts payable of $14.2 million, an increase in inventory of $12.5 million and an increase in prepaid expenses and other current and non-current assets of $5.5 million.
−Removed: The positive impact from merchandise in service was due primarily to fewer garments being placed in service to support our rental customers.
−Removed: The positive impact from receivables was due primarily to a focused effort on collections and timing of cash receipts.
−Removed: The negative impact from accounts payable was due primarily to timing of payments.
−Removed: The negative impact from inventories was due primarily to higher production that will be used to meet future demand.
−Removed: The negative impact from prepaid expenses and other current assets was due primarily to increases in information technology prepaid contracts and increased capitalized commission costs.
+Added: Net cash provided by operating activities in fiscal 2025 increased compared to fiscal 2024, primarily due to improved profitability as well as favorable changes in working capital.
+Added: The increase in operating cash flows was driven by a $20.8 million positive impact from inventories, reflecting our continued focus on managing inventory levels and optimizing supply chain processes and a $6.4 million positive impact from accounts payable, largely attributable to the timing of vendor payments.
+Added: These favorable impacts were partially offset by a $11.7 million decrease related to prepaid expenses and other current and non-current assets, primarily reflecting higher information technology-related prepaid contracts and increased capitalized commission costs.
+Added: Operating activities were also negatively impacted by changes in receivables of $7.0 million and accrued liabilities of $5.8 million, driven largely by the timing of customer collections and disbursements, respectively.
Net Cash Used in Investing Activities
−Removed: The net cash used in investing activities in fiscal 2024 decreased as compared to fiscal 2023 due primarily to the Clean acquisition in the third quarter of fiscal 2023, a decrease in capital expenditures of $11.6 million and a reduced net investment in certificates of deposit of $7.1 million during fiscal 2024.
+Added: Net cash used in investing activities in fiscal 2025 decreased as compared to fiscal 2024 due primarily to reduced net investment in certificates of deposit of $10.9 million and reduced capital expenditures of $6.1 million.
+Added: O ffsetting these decreases was an increase in cash paid for acquisitions of $11.7 million during fiscal 2025 as compared to the prior year.
Net Cash Used in Financing Activities
−Removed: The net cash used in financing activities in fiscal 2024 increased as compared to fiscal 2023 due primarily to a $23.8 million increase in the repurchase of Common Stock during the period.
+Added: Net cash used in financing activities in fiscal 2025 increased as compared to fiscal 2024 due primarily to a $47.1 million increase in the repurchase of Common Stock during the period, an increase in cash dividends of $1.3 million, an increase in taxes withheld and paid related to net-share settlement of equity awards of $1.2 million and an increase in deferred financing costs of $1.2 million.
Long-term Debt and Borrowing Capacity
−Removed: On March 26, 2021, we entered into an amended and restated $175.0 million unsecured revolving credit agreement (as subsequently amended, the “Credit Agreement”) with a syndicate of banks, which matures on March 26, 2026.
−Removed: The Credit Agreement amended and restated our prior credit agreement, which was scheduled to mature on April 11, 2021.
+Added: On August 12, 2025, we entered into an amended and restated $300.0 million unsecured revolving credit agreement (the “Credit Agreement”) with a syndicate of banks, which matures on August 12, 2030.
+Added: The Credit Agreement amended and restated our prior credit agreement, which was scheduled to mature on March 26, 2026.
Under the Credit Agreement, we are able to borrow funds at variable interest rates.
−Removed: Prior to the amendment discussed below, interest on borrowings was based on, at our election, the Eurodollar rate or a base rate, plus in each case a spread based on our consolidated funded debt ratio.
−Removed: On March 9, 2023, we exercised the accordion feature of the Credit Agreement pursuant to an amendment to the Credit Agreement.
−Removed: The exercise of the accordion feature increased the aggregate commitments under the Credit Agreement by $100.0 million, for a total aggregate commitment of up to $275.0 million.
−Removed: In addition, the amendment provided for the replacement of LIBOR with SOFR such that borrowings are based on, at our election, the SOFR rate or a base rate, plus in each case a spread based on our consolidated funded debt ratio.
−Removed: The amendment also refreshed the accordion feature, so that, provided there is no default or event of default under the Credit Agreement and we are in compliance with our financial covenants on a pro forma basis, we may request an increase in the aggregate commitments under the Credit Agreement (in the form of revolving or term tranches) of up to an additional $100.0 million, for a total aggregate commitment of up to $375.0 million.
+Added: As of August 30, 2025, the interest rates applicable to our borrowings under the Credit Agreement would be calculated as SOFR plus 1.00% at the time of the respective borrowing.
+Added: Provided there is no default or event of default under the Credit Agreement and we are in compliance with our financial covenants on a pro forma basis, we may request an increase in the aggregate commitments under the Credit Agreement (in the form of revolving or term tranches) of up to an additional $100.0 million, for a total aggregate commitment of up to $400.0 million.
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.
We test our compliance with these financial covenants on a fiscal quarterly basis.
−Removed: As of August 31, 2024, the interest rates applicable to our borrowings under the Credit Agreement would be calculated as SOFR plus 1.00% at the time of the respective borrowing.
−Removed: As of August 31, 2024, we had no outstanding borrowings and had outstanding letters of credit amounting to $65.1 million, leaving $209.9 million available for borrowing under the Credit Agreement.
+Added: As of August 30, 2025, we had no outstanding borrowings and had outstanding letters of credit amounting to $106.7 million, leaving $193.3 million available for borrowing under the Credit Agreement, with the ability to request up to an additional $100.0 million in commitments pursuant to the accordion feature described above.
As of August 30, 2025, we were in compliance with all covenants under the Credit Agreement.
Derivative Instruments and Hedging Activities
−Removed: In August 2021, we entered into twenty forward contracts to exchange CAD for U.S.
−Removed: dollars at fixed exchange rates in order to manage our exposure related to certain forecasted CAD denominated sales of one of our subsidiaries.
−Removed: The hedged transactions are specified as the first amount of CAD denominated revenues invoiced by one of our domestic subsidiaries each fiscal quarter, beginning in the first fiscal quarter of 2022 and continuing through the fourth fiscal quarter of 2026.
−Removed: In total, we will sell approximately 14.1 million CAD at an average Canadian-dollar exchange rate of 0.7861 over these quarterly periods.
−Removed: We concluded that the forward contracts met the criteria to qualify as a cash flow hedge under U.S.
−Removed: As of August 31, 2024, we had forward contracts with a notional value of approximately 3.6 million CAD outstanding and recorded the fair value of the contracts of $0.1 million in prepaid expenses and other current assets with a corresponding gain of $0.1 million in accumulated other comprehensive loss, which was recorded net of tax.
−Removed: During fiscal 2024, we reclassified $0.1 million from accumulated other comprehensive loss to revenue, related to the derivative financial instruments.
−Removed: The gain on these forward contracts that results in a decrease to accumulated other comprehensive loss as of August 31, 2024 is expected to be reclassified to revenues prior to their maturity on August 29, 2026.
+Added: “ Quantitative and Qualitative Disclosures About Market Risk ” in this Annual Report on Form 10-K for information regarding our derivative instruments and hedging activities.
Environmental and Legal Contingencies
−Removed: We 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.
−Removed: In particular, industrial laundries currently use and must dispose of detergent wastewater and other residues, and, in the past, used perchloroethylene and other dry cleaning solvents.
−Removed: We are attentive to the environmental concerns surrounding the disposal of these materials and have, through the years, taken measures to avoid their improper disposal.
−Removed: We have settled, or contributed to the settlement of, past actions or claims brought against us relating to the disposal of hazardous materials at several sites and there can be no assurance that we will not have to expend material amounts to remediate the consequences of any such disposal in the future.
−Removed: 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.
−Removed: Significant judgment is required to determine the existence of a liability, as well as the amount to be recorded.
−Removed: We regularly consult with attorneys and outside consultants in our consideration of the relevant facts and circumstances before recording a contingent liability.
−Removed: Changes in enacted laws, regulatory orders or decrees, our estimates of costs, risk-free interest rates, insurance proceeds, participation by other parties, the timing of payments, the input of our attorneys and outside consultants or other factual circumstances could have a material impact on the amounts recorded for our environmental and other contingent liabilities.
−Removed: 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.
−Removed: 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.
−Removed: 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 our Company under such laws or expose our Company to third party actions such as tort suits.
−Removed: We continue to address environmental conditions under terms of consent orders negotiated with the applicable environmental authorities or otherwise with respect to certain sites.
−Removed: We have accrued certain costs related to certain sites, including but not limited to, sites in Woburn and Somerville, Massachusetts, as it has been determined that the costs are probable and can be reasonably estimated.
−Removed: We, together with multiple other companies, are party to a consent decree related to our property and the Central Area in Woburn, Massachusetts.
−Removed: The EPA has provided us 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.
−Removed: The consent decree does not address any remediation work that may be required in the Central Area.
−Removed: We, 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.
−Removed: We have accrued costs to perform certain work responsive to the EPA’s comments.
−Removed: Additionally, we have implemented mitigation measures and continue to monitor environmental conditions at a site in Somerville, Massachusetts.
−Removed: We have agreed to undertake additional actions responsive to a notice of audit findings from the Massachusetts Department of Environmental Protection concerning a regulatory submittal that we made in 2009 for a portion of the site.
−Removed: We have 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.
−Removed: This station was part of an extension of the transit system.
−Removed: We have reserved for costs in connection with this matter;
−Removed: however, in light of the uncertainties associated with this matter, these costs and the related reserve may change.
−Removed: We routinely review and evaluate sites that may require remediation and monitoring and determine our estimated costs based on various estimates and assumptions.
−Removed: These estimates are developed using our internal sources or by third-party environmental engineers or other service providers.
−Removed: Internally developed estimates are based on:
−Removed: • Management’s judgment and experience in remediating and monitoring our sites;
−Removed: • Information available from regulatory agencies as to costs of remediation and monitoring;
−Removed: • 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;
−Removed: • The typical allocation of costs among PRPs.
−Removed: There is usually a range of reasonable estimates of the costs associated with each site.
−Removed: In accordance with U.S.
−Removed: GAAP, our accruals represent the amount within the range that we believe is the best estimate or the low end of a range of estimates if no point within the range is a better estimate.
−Removed: When we believe that both the amount of a particular liability and the timing of the payments are reliably determinable, we adjust the cost in current dollars using a rate of 3% for inflation until the time of expected payment and discount the cost to present value using current risk-free interest rates.
−Removed: As of August 31, 2024, the risk-free interest rates we utilized ranged from 4.2% to 4.3%.
−Removed: For environmental liabilities that have been discounted, we include interest accretion, based on the effective interest method, in selling and administrative expenses on the Consolidated Statements of Income.
−Removed: The changes to the amounts of our environmental liabilities for fiscal 2024 and 2023 are as follows (in thousands):
−Removed: Beginning balance
−Removed: Costs incurred for which reserves have been provided
−Removed: Insurance proceeds
−Removed: Interest accretion
−Removed: Changes in discount rates
−Removed: Revisions in estimates
−Removed: Ending balance
−Removed: Anticipated payments and insurance proceeds of currently identified environmental remediation liabilities as of August 31, 2024 for the next five fiscal years and thereafter, as measured in current dollars, are reflected below (in thousands):
−Removed: Fiscal year ended August
−Removed: Estimated costs—current dollars
−Removed: Estimated insurance proceeds
−Removed: Net anticipated costs
−Removed: Effect of inflation
−Removed: Effect of discounting
−Removed: Balance as of August 31, 2024
−Removed: Estimated insurance proceeds are primarily obtained from an annuity received as part of our legal settlement with an insurance company.
−Removed: Annual proceeds of approximately $0.3 million are deposited into an escrow account which funds remediation and monitoring costs for two sites related to our former operations in Williamstown, Vermont.
−Removed: 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.
−Removed: As of August 31, 2024, the balance in this escrow account, which is held in a trust and is not recorded in our Consolidated Balance Sheets, was approximately $5.6 million.
−Removed: Also included in estimated insurance proceeds are amounts we are entitled to receive pursuant to legal settlements as reimbursements from three insurance companies for estimated costs at one of our sites.
−Removed: Our nuclear garment decontamination facilities are licensed by respective state agencies, as delegated authority by the Nuclear Regulatory Commission (the “NRC”) pursuant to the NRC’s Agreement State program and are subject to applicable federal and state radioactive material regulations.
−Removed: In addition, our international locations (Canada, the United Kingdom and the European Union) are regulated by equivalent respective jurisdictional authorities.
−Removed: There can be no assurance that such regulation will not lead to material disruptions in our garment decontamination business.
−Removed: From time to time, we are also subject to legal and regulatory proceedings and claims arising from the conduct of our business operations, including personal injury claims, customer contract matters, employment claims and environmental matters as described above.
+Added: We are involved with environmental investigation, monitoring and remediation activities at certain sites.
+Added: In addition, from time to time, we are also subject to legal and regulatory proceedings and claims arising from the conduct of our business operations, including but not limited to, personal injury, customer contract, employment claims and environmental and tax matters as described.
+Added: We maintain insurance coverage providing indemnification against many of such claims, and we do not expect, although there can be no assurance, that we will sustain any material loss as a result thereof.
+Added: Refer to Note 11, “ Commitments and Contingencies ,” to the Consolidated Financial Statements, as well as Part II, Item 1A.
+Added: “ Risk Factors ” in this Annual Report on Form 10-K.
In addition, in the fourth quarter of fiscal 2022, the Mexican federal tax authority issued a tax assessment on our subsidiary in Mexico for fiscal 2016 import taxes, value added taxes and custom processing fees of over $17.0 million, plus surcharges, fines and penalties of over $67.7 million for a total assessment of over $84.7 million.
21 unchanged sentences
*Includes non-cancellable purchase commitments for inventories, software, and services.
−Removed: As discussed above under “Long-Term Debt and Borrowing Capacity”, as of August 31, 2024, we had borrowing capacity of $375.0 million under our Credit Agreement, of which approximately $209.9 million was available for borrowing.
−Removed: Also, as of such date, we had no outstanding borrowings and letters of credit outstanding of $65.1 million.
−Removed: All letters of credit expire in less than one year.
−Removed: As discussed above under “Derivative Instruments and Hedging Activities”, as of August 31, 2024, we had forward contracts with a notional value of approximately 3.6 million CAD outstanding and recorded the fair value of the contracts of $0.1 million in prepaid expenses and other current assets with a corresponding gain of $0.1 million in accumulated other comprehensive loss, which was recorded net of tax.
+Added: As discussed above under “ Long-Term Debt and Borrowing Capacity ”, as of August 30, 2025, we had total borrowing capacity of $300.0 million under our Credit Agreement.
+Added: The Credit Agreement includes an accordion feature, which is described above, that permits us to request up to an additional $100.0 million in commitments (for aggregate commitments up to $400.0 million) subject to covenant compliance.
+Added: As of August 30, 2025 had no outstanding borrowings, $106.7 million of letters of credit outstanding and $193.3 million available for borrowing.
+Added: We were in compliance with all covenants as of that date.
+Added: As discussed below under “ Quantitative and Qualitative Disclosures About Market Risk ”, as of August 30, 2025, we had forward contracts with a notional value of approximately 1.8 million CAD outstanding and recorded the fair value of the contracts of $0.1 million in prepaid expenses and other current assets with a corresponding gain of $0.1 million in accumulated other comprehensive loss, which was recorded net of tax.
During fiscal 2025, we reclassified $0.1 million from accumulated other comprehensive loss to revenue, related to the derivative financial instruments.
16 unchanged sentences
Total assets denominated in currencies other than the U.S.
−Removed: dollar represented approximately 6.8% and 6.6% of our total consolidated assets at August 31, 2024 and August 26, 2023, respectively.
+Added: dollar represented approximately 7.0% and 6.8% of our total consolidated assets as of August 30, 2025 and August 31, 2024, respectively.
If exchange rates had increased or decreased by 10% from the actual rates in effect during fiscal 2025, our revenues and assets for the year ended and as of August 30, 2025 would have increased or decreased by approximately $17.1 million and $19.4 million, respectively.
16 unchanged sentences
We are exposed to interest rate risk primarily through borrowings under our Credit Agreement.
−Removed: During fiscal 2023, we borrowed and repaid $80.0 million under the Credit Agreement.
During fiscal 2025, we had no outstanding borrowings under the Credit Agreement.
6 unchanged sentences
UniFirst Corporation and Subsidiaries
+Added: 52 Weeks Ended
+Added: 53 Weeks Ended
+Added: 52 Weeks Ended
(In thousands, except per share data)
7 unchanged sentences
Interest income, net
−Removed: Other expense, net
−Removed: Total other (income) expense, net
+Added: Other (income) expense, net
+Added: Total other income, net
Income before income taxes
13 unchanged sentences
UniFirst Corporation and Subsidiaries
+Added: 52 Weeks Ended
+Added: 53 Weeks Ended
+Added: 52 Weeks Ended
(In thousands)
43 unchanged sentences
20,000,000 shares authorized;
−Removed: 3,590,295 shares issued and outstanding in 2024 and 2023
+Added: 3,551,265 and 3,590,295 shares issued and outstanding in 2025 and 2024, respectively
Capital surplus
13 unchanged sentences
Dividends declared
−Removed: Shares converted
Share-based compensation, net (2)
Share-based awards exercised,
−Removed: Repurchase of Common Stock
Balance, as of August 26, 2023
5 unchanged sentences
Share-based awards exercised,
+Added: Repurchase of Common Stock (3)
Balance, as of August 31, 2024
6 unchanged sentences
Repurchase of Common Stock (3)
+Added: Shares converted
Balance, as of August 30, 2025
5 unchanged sentences
UniFirst Corporation and Subsidiaries
+Added: 52 Weeks Ended
+Added: 53 Weeks Ended
+Added: 52 Weeks Ended
(In thousands)
6 unchanged sentences
Deferred income taxes
+Added: (Gain) loss on sale of property and equipment
Changes in assets and liabilities, net of acquisitions:
44 unchanged sentences
Typical customers for these specialized services include government agencies, research and development laboratories, high technology companies and utility providers operating nuclear reactors.
−Removed: As discussed and described in Note 15, “Segment Reporting”, to these Consolidated Financial Statements, the Company has five reporting segments:
−Removed: United States (“U.S.”) and Canadian Rental and Cleaning, Manufacturing (“MFG”), Specialty Garments Rental and Cleaning (“Specialty Garments”), First Aid and Corporate.
−Removed: The operations of the U.S.
−Removed: and Canadian Rental and Cleaning reporting segment are referred to by the Company as its “industrial laundry operations” and the locations related to this reporting segment are referred to as “industrial laundries”.
−Removed: The Company refers to its U.S.
−Removed: and Canadian Rental and Cleaning, MFG, and Corporate segments combined as its “Core Laundry Operations”.
+Added: As discussed and described in Note 15, “ Segment Reporting ”, to these Consolidated Financial Statements, the Company has three reporting segments:
+Added: Uniform & Facility Service Solutions, First Aid & Safety Solutions and Other.
+Added: Certain operations of the Uniform & Facility Service Solutions reporting segment are referred to by the Company as its “industrial laundry operations” and the locations related to this reporting segment are referred to as “industrial laundries”.
Principles of Consolidation
14 unchanged sentences
The Company’s fiscal year ends on the last Saturday in August.
−Removed: For financial reporting purposes, fiscal year ended August 31, 2024 (“fiscal 2024”) consisted of 53 weeks, and fiscal years ended August 26, 2023 (“fiscal 2023”) and August 27, 2022 (“fiscal 2022”) both consisted of 52 weeks.
+Added: For financial reporting purposes, fiscal year ended fiscal year ended August 31, 2024 (“fiscal 2024”) consisted of 53 weeks, and fiscal year ending August 30, 2025 (“fiscal 2025”) and August 26, 2023 (“fiscal 2023 ”) both consisted of 52 weeks.
The additional week was included in the fourth quarter of fiscal 2024.
17 unchanged sentences
Revenue Recognition
−Removed: In fiscal 2024, approximately 84.2 % of the Company’s revenues are derived from fees for route servicing of Core Laundry Operations, Specialty Garments and First Aid services performed by the Company’s employees at the customer’s location of business.
−Removed: Revenues from the Company’s route servicing customer contracts represent a single-performance obligation.
−Removed: The Company recognizes these revenues over time as services are performed based on the nature of services provided and contractual rates (input method).
−Removed: 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.
−Removed: The variable consideration is typically in the form of consideration due to a customer based on performance metrics specified within the contract.
−Removed: Specifically, some contracts contain discounts or rebates that the customer can earn through the achievement of specified volume levels.
−Removed: Each component of variable consideration is earned based on the Company’s actual performance during the measurement period specified within the contract.
−Removed: 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.
−Removed: When determining if variable consideration should be constrained, the Company considers whether factors outside its control could result in a significant reversal of revenue.
−Removed: In making these assessments, the Company considers the likelihood and magnitude of a potential reversal.
−Removed: The Company’s performance period generally corresponds with the monthly invoice period.
−Removed: No significant constraints on the Company’s revenue recognition were applied during fiscal 2024, 2023 and 2022.
−Removed: The Company reassesses these estimates during each reporting period.
−Removed: The Company maintains a liability for these discounts and rebates within accrued liabilities on the Consolidated Balance Sheets.
−Removed: Variable consideration also includes consideration paid to a customer at the beginning of a contract.
−Removed: The Company capitalizes this consideration and amortizes it over the life of the contract as a reduction to revenue in accordance with the accounting guidance for revenue recognition.
−Removed: These assets are included in other assets on the Consolidated Balance Sheets.
−Removed: The following table presents the Company’s revenues for fiscal 2024, 2023 and 2022 disaggregated by service type:
+Added: In fiscal 2025, approximately 83.8 % of the Company’s revenues are derived from fees for route servicing of Uniform & Facility Service Solutions and Other segment services performed by the Company’s employees at the customer’s location of business.
+Added: The Company recognizes these revenues over time using an output method, as customers simultaneously receive and consume the benefits of the services as they are satisfied.
+Added: The Company’s remaining revenue representing approximately 16.2% of the Company’s total revenue, is recognized when the obligations under the terms of a contract with a customer are satisfied.
+Added: This generally occurs when the goods are transferred to the customer.
+Added: Certain of the Company’s customer contracts, primarily within the Uniform & Facility Service Solutions segment, include pricing terms that provide customers with potential discounts or rebates based on volume or other performance metrics.
+Added: These components of variable consideration are not material to the Company’s consolidated revenues, and the related estimates are reassessed each reporting period.
+Added: The Company maintains an immaterial liability for these amounts within accrued liabilities on the Consolidated Balance Sheets.
+Added: Any consideration paid to a customer at the beginning of a contract is capitalized and amortized over the life of the contract as a reduction to revenue.
+Added: The following table presents the Company’s revenues for fiscal 2025, 2024 and 2023 disaggregated by segment:
(In thousands, except percentages)
−Removed: Core Laundry Operations
−Removed: Specialty Garments
+Added: Uniforms & Facility Service Solutions
+Added: First Aid & Safety Solutions
Total revenues
−Removed: The following table presents the Company's percentage of revenues for fiscal 2024, 2023 and 2022 disaggregated by the timing of revenue recognition by service type:
−Removed: Point in Time
−Removed: Point in Time
−Removed: Point in Time
−Removed: Core Laundry Operations
−Removed: Specialty Garments
+Added: The Company ’s segment results for the fiscal year 2025 presented in these Consolidated Financial Statements reflect its modified segments.
+Added: The Company ’s prior period segment results presented in these Consolidated Financial Statements have been recast to conform with the current presentation of its modified segments.
See Note 15, “ Segment Reporting ” for additional details of segment definitions.
4 unchanged sentences
Deferred commissions are classified as current or non-current based on the timing of when the Company expects to recognize the expense.
−Removed: The following table presents deferred commissions on the Company's Consolidated Balance Sheets as of August 31, 2024 and August 26, 2023 are as follows (in thousands):
−Removed: Balance Sheet Location
+Added: The following table presents deferred commissions on the Company’s Consolidated Balance Sheets as of August 30, 2025 and August 31, 2024:
+Added: (in thousands)
Prepaid expenses and other current assets
−Removed: The following table presents the Company's amortization expense related to deferred commissions on the Consolidated Statements of Income for fiscal 2024, 2023 and 2022 are as follows (in thousands):
−Removed: Income Statement Location
+Added: The following table presents the Company’s amortization expense related to deferred commissions on the Consolidated Statements of Income for fiscal 2025, 2024 and 2023, respectively:
+Added: (in thousands)
Selling and administrative expenses
−Removed: I nventories and Rental Merchandise in Service
+Added: Inventories and Rental Merchandise in Service
Inventories are stated at the lower of cost or net realizable value, net of any reserve for excess and obsolete inventory.
10 unchanged sentences
Rental merchandise in service is amortized, primarily on a straight-line basis, over the estimated service lives of the merchandise, which range from six to thirty-six months .
−Removed: The amortization expense is included in the cost of revenues on the Company’s Consolidated Statements of Income.
+Added: The amortization expense is included in the cost of revenues on the
+Added: Company’s Consolidated Statements of Income.
In establishing estimated lives for merchandise in service, management considers historical experience and the intended use of the merchandise.
26 unchanged sentences
In addition, U.S.
−Removed: GAAP requires that companies test goodwill if events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit to which goodwill is assigned below its
−Removed: carrying amount.
−Removed: The Company used both the qualitative and quantitative assessment options for its impairment testing for goodwill in fiscal 2024 and determined that the fair values of the reporting units more likely than not exceeded their carrying values and that there was no evidence of impairment as of May 26, 2024.
+Added: GAAP requires that companies test goodwill if events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit to which goodwill is assigned below its carrying amount.
+Added: The Company used quantitative assessment option for its impairment testing for goodwill in fiscal 2025 and determined that the fair values of the reporting units more likely than not exceeded their carrying values and that there was no evidence of impairment as of June 1, 2025.
The Company cannot predict future economic conditions and their impact on the Company or the future net realizable value of the Company’s stock.
12 unchanged sentences
Capitalized costs were $ 45.3 million and $ 18.9 million as of August 30, 2025, and August 31, 2024 , respectively.
−Removed: The Company has not placed any modules of the applicable software in service as of August 31, 2024 .
Environmental and Other Contingencies
13 unchanged sentences
The Company has recognized as a liability the present value of the estimated future costs to decommission its nuclear laundry facilities.
−Removed: The Company depreciates, on a straight-line basis, the amount added to property, plant and equipment and recognizes accretion expense in connection with the discounted liability over the various remaining lives which range from approximately one to twenty-one years .
+Added: The Company depreciates, on a straight-line basis, the amount added to property, plant and equipment and recognizes accretion expense in connection with the discounted liability over the various remaining lives which range from approximately one to nineteen years .
The estimated liability has been based on historical experience in decommissioning nuclear laundry facilities, estimated useful lives of the underlying assets, external vendor estimates as to the cost to decommission these assets in the future, and federal and state regulatory requirements.
7 unchanged sentences
The Company’s estimates consider historical claims experience and other factors.
−Removed: In certain cases where partial insurance coverage exists, the Company estimates the portion of the liability that will be covered by existing insurance policies to arrive at its net expected liability.
+Added: In certain cases where partial insurance coverage exists, the
+Added: Company estimates the portion of the liability that will be covered by existing insurance policies to arrive at its net expected liability.
Receivables for insurance recoveries are recorded as assets, on an undiscounted basis.
15 unchanged sentences
In its discretion, the Company may credit one or more additional contributions to participant accounts.
−Removed: NQDC Plan participants who are not accruing benefits under the Supplemental Executive Retirement Plan are eligible to have discretionary annual employer contributions credited
−Removed: to their NQDC Plan accounts.
+Added: NQDC Plan participants who are not accruing benefits under the Supplemental Executive Retirement Plan are eligible to have discretionary annual employer contributions credited to their NQDC Plan accounts.
All participants are also eligible to have employer supplemental contributions and employer discretionary contributions credited to their NQDC Plan accounts.
55 unchanged sentences
Diluted Income Per Share—
−Removed: Share-Based Awards that would result in the issuance of 60,260 , 51,708 and 34,416 shares, respectively, of Common Stock were excluded from the calculation of diluted earnings per share for fiscal 2024, 2023 and 2022 because they were anti-dilutive.
+Added: Anti-dilutive stock-based awards excluded from the calculations of diluted income per share were immaterial during the periods presented.
Foreign Currency Translation
7 unchanged sentences
Recent Accounting Pronouncements
−Removed: In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280):
+Added: In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update “ASU” 2023-07, Segment Reporting (Topic 280):
Improvements to Reportable Segment Disclosures , which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses.
2 unchanged sentences
The amendments should be applied retrospectively to all prior periods presented in the financial statements.
−Removed: The Company is currently evaluating this ASU to determine its impact on the Company’s disclosures.
+Added: The Company adopted ASU 2023-07 on August 30, 2025.
+Added: Adoption resulted in expanded segment-level disclosures, consistent with the Company’s new three-segment reporting structure, but did not have a material impact on the Company’s consolidated financial statements.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):
4 unchanged sentences
Retrospective application is permitted.
+Added: The Company has evaluated the impact of the ASU and concluded it is immaterial to the Company's disclosures.
+Added: In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures .
+Added: The ASU requires a public business entity to provide disaggregated disclosures of certain categories of expenses on an annual and interim basis including purchases of inventory, employee compensation, depreciation, and intangible asset amortization for each income statement line item that contains those expenses.
+Added: This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted.
The Company is currently evaluating this ASU to determine its impact on the Company’s disclosures.
+Added: In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (S ubtopic 350-40):
+Added: Targeted Improvements to the Accounting for Internal-Use Software .
+Added: This ASU amends the guidance in ASC 350-40 to modernize the recognition and disclosure framework for internal-use software costs by eliminating the previous “development stage” model and introducing a more principles- and judgment-based approach.
+Added: ASU 2025-06 is effective for fiscal years beginning after December 15, 2027 and for interim periods within those fiscal years.
+Added: Early adoption is permitted.
+Added: The Company is currently evaluating the impact of ASU 2025-06 on its consolidated financial statements.
Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the SEC have not had, or are not believed by management to, have a material impact on the Company’s present or future financial statements.
3 unchanged sentences
Goodwill is allocated to the segment to which the acquisition relates and is deductible for tax purposes.
+Added: During fiscal 2025, the Company completed ten business acquisitions with an aggregate purchase price of approximately $ 13.9 million, including $ 12.0 million in the First Aid & Safety Solutions segment and $ 1.9 million in the Uniform & Facility Service Solutions segment.
+Added: The purchase price was primarily allocated to goodwill and intangible assets, with tangible assets consisting mainly of inventory and property, plant and equipment.
+Added: A portion of the total purchase price is subject to holdback arrangements, which are typically payable within a one-year period following the acquisition date and contingent upon the achievement of specified revenue targets.
+Added: The operating results of these businesses have been included in the Company’s consolidated financial statements from their respective acquisition dates.
+Added: As these acquisitions were not material to the Company’s consolidated results, pro forma financial information has not been presented.
During fiscal 2024, the Company did not complete any material business acquisitions.
−Removed: Clean Uniform
−Removed: During the third quarter of fiscal 2023, the Company completed the acquisition of the business and certain real estate assets of Clean Uniform (“Clean”) from Clean Holdco, Inc.
−Removed: and certain of its affiliates for an aggregate purchase price of $ 299.1 million, net of cash acquired.
−Removed: The difference between the cash paid and the total purchase price of $ 302.4 million represented amounts owed from the seller as a result of final closing adjustments.
−Removed: The acquisition was structured primarily as a stock purchase but was treated as an asset purchase from a tax perspective, which has allowed for a step-up in the tax basis of the assets and provides incremental tax benefits expected to be realized over time with a value of approximately $ 40 million.
−Removed: Clean was a uniform, workwear and facility service program provider with 11 locations covering Missouri, Illinois, Arkansas, Kansas and Oklahoma.
−Removed: Prior to the closing of the acquisition, neither the Company nor any of its affiliates, or any director or officer of the Company or any of its affiliates, or any associate of any such director or officer, had any material relationship with any of the sellers.
−Removed: The results of operations from Clean are included in the Company’s results under the U.S.
−Removed: and Canadian Rental and Cleaning segment subsequent to the acquisition date of March 13, 2023.
−Removed: The Company paid for the acquisition of Clean with cash on hand and borrowings under the Credit Agreement (defined below).
−Removed: The Clean acquisition was accounted for using the purchase method of accounting.
−Removed: The Company has measured the fair value of its tangible and intangible assets acquired and liabilities assumed in the Clean acquisition and has finalized the purchase price allocations.
−Removed: The amounts assigned to intangible assets acquired were based on their respective fair values determined as of the acquisition date, which the Company determined by engaging specialists to assist in their valuation.
−Removed: The table below summarizes the final purchase price allocation to the estimated fair value of assets acquired and liabilities assumed at the acquisition date.
−Removed: Goodwill is calculated as the excess of the purchase price over the net assets recognized and represents the estimated future economic benefits arising from expected synergies and growth opportunities for the Company.
−Removed: All of the goodwill and intangible assets were allocated to the U.S.
−Removed: and Canadian Rental and Cleaning segment and are deductible for tax purposes.
−Removed: Transaction and related costs, consisting primarily of professional fees, directly related to the acquisition, totaled approximately $ 3.0 million during fiscal 2023.
−Removed: All transaction and related costs were expensed as incurred and are included in selling and administrative expenses.
−Removed: The final purchase price allocation is as follows (in thousands):
−Removed: Rental merchandise in service
−Removed: Prepaid expenses and other current assets
−Removed: Property, plant and equipment
−Removed: Operating lease right-of-use assets, net
−Removed: Goodwill and intangible assets
−Removed: Accounts payable
−Removed: Accrued liabilities
−Removed: Operating lease liabilities, current
−Removed: Operating lease liabilities, non-current
−Removed: Total purchase price
−Removed: The following table identifies the Company’s allocation of purchase price to the intangible assets and goodwill acquired by category:
−Removed: Estimated Fair Value (in thousands)
−Removed: Weighted Average Life
−Removed: Customer contracts
−Removed: Total intangible assets and goodwill acquired
−Removed: The amount of amortization expense recognized of Clean customer contracts and trade name included in the consolidated statements of income from the acquisition date of March 13, 2023 to August 26, 2023 was $ 3.8 million and $ 0.9 million, respectively.
−Removed: Unaudited pro-forma information presents the combined financial resul ts for the Company and Clean as if the acquisition of Clean had occurred on August 28, 2022.
−Removed: The unaudited pro-forma revenue of the combined entity for fiscal 2023 was $ 2.3 billion reflecting the effects of the Clean acquisition.
−Removed: The effects of the Clean acquisition on unaudited pro-forma net income of the combined entity were not material for fiscal 2023.
−Removed: Other Acquisitions
−Removed: During fiscal 2023, the Company completed four other business acquisitions with an aggregate purchase price of approximately $ 7.1 million.
−Removed: Tangible assets acquired primarily relate to accounts receivable, inventory and property, plant and equipment.
−Removed: The results of operations of all acquisitions completed during fiscal 2023 have been included in the Company’s consolidated financial results since their respective acquisition dates.
−Removed: These acquisitions were not significant in relation to the Company’s consolidated financial results and, therefore, pro-forma financial information has not been presented.
−Removed: The following table identifies the Company’s allocation of purchase price to the intangible assets and goodwill acquired by category:
−Removed: Estimated Fair Value (in thousands)
−Removed: Weighted Average Life
+Added: Aggregate information relating to the acquisition of businesses which were accounted for as purchases is as follows (in thousands):
+Added: Tangible assets acquired
Customer contracts
−Removed: Other intangible assets
−Removed: Total intangible assets and goodwill acquired
+Added: Other intangibles assets
+Added: Total consideration paid for acquisition of businesses
+Added: Contingent holdbacks
+Added: Acquisition of businesses, net of contingent holdbacks
Fair Value Measurements
46 unchanged sentences
Effective income tax rate
−Removed: The decrease in the effective tax rate for fiscal 2024 as compared to the corresponding period in the prior fiscal year was due primarily to favorable adjustments to our tax reserves during the current period and the remeasurement of U.S.
−Removed: net deferred tax liabilities because of legislative changes enacted during the current period impacting the Company’s state tax rate.
+Added: The increase in the effective tax rate for fiscal 2025 compared to the prior fiscal year was to an increase in taxable permanent differences in fiscal 2025.
The components of deferred income taxes included on the Consolidated Balance Sheets are as follows (in thousands):
9 unchanged sentences
Payroll and benefit related
−Removed: Tax in excess of book depreciation
+Added: Property, plant and equipment
Purchased intangible assets
10 unchanged sentences
One of the components of the solution is the implementation of a global minimum corporate tax rate of 15 % for large multinational corporations (“Pillar Two”).
−Removed: The OECD continues to release additional guidance on the two-pillar solution with implementation to begin in 2024 while reporting of the tax applicable will not occur until 2026.
+Added: The OECD continues to release additional guidance on the two-pillar solution with implementation began in 2024 while reporting of the tax applicable will not occur until calendar 2026.
Based on currently enacted guidelines, the Company does not expect Pillar Two to have a material impact upon its tax expense, cash taxes, and effective tax rate.
Uncertain tax positions
−Removed: As of August 31, 2024 and August 26, 2023 , there was $ 4.6 million and $ 7.8 million, respectively, of unrecognized tax benefits, of which $ 4.5 million and $ 7.1 million, respectively, would favorably impact the Company’s effective tax rate, if recognized.
+Added: As of August 30, 2025, and August 31, 2024 , there were $ 3.9 million and $ 4.6 million, respectively, of unrecognized tax benefits, of which $ 3.7 million and $ 4.5 million, respectively, would favorably impact the Company’s effective tax rate, if recognized.
The Company recognized interest and penalties related to uncertain tax positions as a component of income tax expense which is consistent with the recognition of these items in prior reporting periods.
14 unchanged sentences
The Company has a significant portion of its operations in the U.S.
−Removed: It is required to file federal income tax returns as well as state income tax returns in a majority of the U.S.
−Removed: states and also in a number of Canadian provinces.
−Removed: At times, the Company is subject to audits in these jurisdictions, which typically are complex and can require several years to resolve.
+Added: The Company is required to file federal income tax returns as well as state income tax returns in most of the U.S.
+Added: states and in several Canadian provinces.
+Added: At times, the Company is subject to audits in these jurisdictions, which typically are complex and can take several years to resolve.
The final resolution of any such tax audits could result in either a reduction in the Company’s accruals or an increase in its income tax provision, both of which could have a material impact on the consolidated results of operations in any given period.
3 unchanged sentences
Long-Term Debt
−Removed: On March 26, 2021, the Company entered into an amended and restated $ 175.0 million unsecured revolving credit agreement (as subsequently amended, the “Credit Agreement”) with a syndicate of banks, which matures on March 26, 2026 .
−Removed: Under the Credit Agreement, the Company was able to borrow funds at variable interest rates based on, at the Company’s election, the Eurodollar rate or a base rate, plus in each case a spread based on the Company’s consolidated funded debt ratio.
−Removed: Prior to its amendment as described below, the Credit Agreement had an accordion feature that allowed for increases of the aggregate commitments under the Credit Agreement of up to an additional $ 100.0 million, for a total aggregate commitment of up to $ 275.0 million.
−Removed: On March 9, 2023, the Company exercised the accordion feature of the Credit Agreement pursuant to an amendment to the Credit Agreement.
−Removed: The exercise of the accordion feature increased the aggregate commitments under the Credit Agreement by $ 100.0 million, for a total aggregate commitment of up to $ 275.0 million.
−Removed: In addition, the amendment provided for the replacement of LIBOR with Secured Overnight Financing Rate (“SOFR”) such that borrowings are based on, at the Company’s election, the SOFR rate or a base rate, plus in each case a spread based on the Company’s consolidated funded debt ratio.
−Removed: The amendment also refreshed the accordion feature, so that, provided there is no default or event of default under the Credit Agreement and the Company is in compliance with its financial covenants on a pro forma basis, the Company may request an increase in the aggregate commitments under the Credit Agreement (in the form of revolving or term tranches) of up to an additional $ 100.0 million, for a total aggregate commitment of up to $ 375.0 million.
+Added: On August 12, 2025, the Company entered into an amended and restated $ 300.0 million unsecured revolving credit agreement, (the “Credit Agreement”) with a syndicate of banks, which matures on August 12, 2030 .
+Added: Under the Credit Agreement, the Company was able to borrow funds at variable interest rates based on, at the Company’s election, the Secured Overnight Financing Rate or a base rate, plus in each case a spread based on the Company’s consolidated funded debt ratio.
+Added: Provided there is no default or event of default under the Credit Agreement and the Company is in compliance with its financial covenants on a pro forma basis, the Company may request an increase in the aggregate commitments under the Credit Agreement (in the form of revolving or term tranches) of up to an additional $ 100.0 million, for a total aggregate commitment of up to $ 400.0 million.
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.
1 unchanged sentence
As of August 30, 2025, the interest rates applicable to the Company’s borrowings under the Credit Agreement would be calculated as SOFR plus 1.00 % at the time of the respective borrowing.
−Removed: During the third fiscal quarter of 2023, the Company borrowed $ 80.0 million under its Credit Agreement to finance the acquisition of Clean and fund its day-to-day operations.
−Removed: All amounts were repaid during the third quarter of fiscal 2023.
−Removed: As of both August 31, 2024 and August 26, 2023 , the Company had no outstanding borrowings.
−Removed: As of August 31, 2024, the Company had outstanding letters of credit amounting to $ 65.1 million , leaving $ 209.9 million available for borrowing under the Credit Agreement.
+Added: As of August 30, 2025 , the Company had no outstanding borrowings and had outstanding letters of credit amounting to $ 106.7 million , leaving $ 193.3 million available for borrowing under the Credit Agreement, with the ability to request up to an additional $ 100.0 million in commitments pursuant to the accordion feature.
As of August 30, 2025, the Company was in compliance with all covenants under the Credit Agreement.
36 unchanged sentences
Amortization of prior service cost
−Removed: Amortization of actuarial (gain)/loss
−Removed: Amortization of net loss
+Added: Amortization of actuarial gain
Net periodic benefit cost
4 unchanged sentences
Interest cost
−Removed: Actuarial gain
+Added: Actuarial loss (gain)
Benefits paid
−Removed: Settlements/Curtailments
Projected benefit obligation, end of year
4 unchanged sentences
Benefits paid
−Removed: Settlements/Curtailments
Fair value of plan assets, end of year
4 unchanged sentences
Pension Plans
−Removed: Deferred tax (liabilities) assets
+Added: Deferred tax assets (liabilities)
Accrued liabilities
−Removed: Accumulated other comprehensive income (loss)
+Added: Accumulated other comprehensive (loss) income
As of August 30, 2025 and August 31, 2024, the amounts recognized in accumulated other comprehensive loss are as follows (in thousands):
UniFirst Plan
−Removed: Net actuarial (loss) gain
+Added: Net actuarial gain
Unrecognized prior service cost
9 unchanged sentences
Rate of compensation increase
−Removed: The benefit payments, which reflect expected future service, are expected to be paid for the five fiscal years subsequent to August 31, 2024 and five years thereafter are as follows (in thousands):
+Added: The benefit payments, which reflect expected future service, are expected to be paid for the five fiscal years subsequent to August 30, 2025 and thereafter are as follows (in thousands):
UniFirst Plan
+Added: Total benefit payments
Non-qualified Deferred Compensation Plan
5 unchanged sentences
The amounts of such contributions, if any, may differ from year to year and from participant to participant.
−Removed: The amounts for employee or employer contributions charged to expense related to the NQDC Plan for fiscal 2024, fiscal 2023 and fiscal 2022, were $ 0.8 million , $ 0.3 million and nominal, respectively.
+Added: The amounts for employee or employer contributions charged to expense related to the NQDC Plan for fiscal 2025, fiscal 2024 and fiscal 2023, were $ 1.0 million , $ 0.8 million and $ 0.3 million , respectively.
The Company, at its discretion, may also elect to transfer funds to a trust account with the intention to fund the future liability.
1 unchanged sentence
Total NQDC Plan liabilities were $ 2.8 million and $ 1.6 million as of August 30, 2025 and August 31, 2024, respectively, and are included within current accrued liabilities in the accompanying Consolidated Balance Sheets.
−Removed: Earnings and losses on contributions, based on these investment elections, are recorded as a component of compensation expense in the period earned and are included within other (income) expense, net.
+Added: Earnings and losses on contributions, based on investment elections, are recorded as a component of compensation expense in the period earned and are included within other (income) expense, net.
+Added: For fiscal 2025 and fiscal 2024, other income was $ 0.4 million and $ 0.6 million , respectively.
+Added: No amount was recorded for fiscal 2023.
Goodwill and Other Intangible Assets
7 unchanged sentences
Balance as of August 31, 2024
−Removed: Purchase price adjustments recorded during the period
+Added: Goodwill recorded during the period
Balance as of August 30, 2025
−Removed: As of August 31, 2024, the Company has allocated $ 637.4 million , $ 10.9 million and $ 0.6 million of goodwill to its U.S.
−Removed: and Canadian Rental and Cleaning, Specialty Garments and First Aid segments, respectively.
+Added: As of August 30, 2025, the Company has allocated $ 645.8 million , $ 8.7 million and $ 3.2 million of goodwill to its Uniform & Facility Service Solutions, First Aid & Safety Solutions and Other segments, respectively.
Intangible assets, net in the Company’s Consolidated Balance Sheets as of August 30, 2025 and August 31, 2024 are as follows (in thousands):
25 unchanged sentences
The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset.
−Removed: The Company continues to depreciate, on a straight-line basis, the amount added to property, plant and equipment and recognizes accretion expense in connection with the discounted liability over the various remaining lives which range from approximately one to twenty-one years .
+Added: The Company continues to depreciate, on a straight-line basis, the amount added to property, plant and equipment and recognizes accretion expense in connection with the discounted liability over the various remaining lives which range from approximately one to nineteen years .
The Company recognized as a liability the present value of the estimated future costs to decommission its nuclear laundry facilities.
50 unchanged sentences
The Company continues to address environmental conditions under terms of consent orders negotiated with the applicable environmental authorities or otherwise with respect to certain sites.
−Removed: The Company has accrued certain costs related to certain sites, including but not limited to, sites in Woburn and Somerville, Massachusetts, as it has been determined that the costs are probable and can be reasonably estimated.
−Removed: The Company, together with multiple other companies, is party to a consent decree related to the Company’s property and parcels of land (the “Central Area”) at a site in Woburn, Massachusetts.
−Removed: 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.
−Removed: The consent decree does not address any remediation work that may be required in the Central Area.
−Removed: The Company, together with other signatories, has implemented and proposed to do additional work at the Woburn site but many of the EPA’s comments remain to be resolved.
−Removed: The Company has accrued costs to perform certain work responsive to the EPA’s comments.
−Removed: Additionally, the Company has implemented mitigation measures and continues to monitor environmental conditions at a site in Somerville, Massachusetts.
−Removed: The Company has agreed to undertake additional actions responsive 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.
−Removed: 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.
−Removed: This station was part of an extension of the local transit system.
−Removed: The Company has reserved for costs in connection with this matter;
−Removed: however, in light of the uncertainties associated with this matter, these costs and the related reserve may change.
+Added: The Company has accrued certain costs related to ongoing and potential future environmental investigation, monitoring and remediation activities at certain sites, as it has been determined that the costs are probable and can be reasonably estimated.
The Company routinely reviews and evaluates sites that may require remediation and monitoring and determines its estimated costs based on various estimates and assumptions.
28 unchanged sentences
Estimated insurance proceeds are primarily obtained from an annuity received as part of a legal settlement with an insurance company.
−Removed: 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.
+Added: Annual proceeds of approximately $ 0.3 million are deposited into an escrow account which funds remediation and monitoring costs for two sites related to former operations.
Annual proceeds received but not expended in the current year accumulate in this account and may be used in future years for costs related to this site through the year 2027.
7 unchanged sentences
The Company challenged the validity of the tax assessment through an appeal process.
−Removed: In the first quarter of fiscal 2025, the Federal Tax Court in Mexico made a determination partially in its favor.
+Added: In the first quarter of fiscal 2025, the Federal Tax Court in Mexico made a determination partially in the Company’s favor.
Following the Federal Tax Court’s determination, the Company filed a constitutional action before the Federal Administrative Court.
+Added: In addition, the federal tax authority appealed the determination of the Federal Tax Court.
While the Company is unable to ascertain the ultimate outcome of this matter, based on the information currently available, the Company believes that a loss with respect to this matter is neither probable nor remote.
Given the uncertainty associated with the ultimate resolution of this matter, the Company is unable to reasonably assess an estimate or range of estimates of any potential losses.
+Added: Accordingly, the Company has not recorded a liability related to this matter.
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.
−Removed: 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.
+Added: It is possible, however, that the future financial position and/or results of operations for any particular future period could be materially affected by changes in the Company’s assumptions or strategies related to these contingencies or changes out of the Company’s control.
Other Contingent Liabilities
10 unchanged sentences
All Share-Based Awards issued to the Company’s non-employee members of the Board of Directors (the “Directors”) were recommended to the Board of Directors by the Compensation Committee and approved by the Board of Directors.
−Removed: In fiscal 2024, a total of 1,475 shares of fully vested unrestricted stock were granted to non-employee Directors of the Company.
−Removed: In fiscal 2023, a total of 1,575 shares of fully vested unrestricted stock were granted to non-employee Directors of the Company.
−Removed: In fiscal 2022, a total of 1,025 shares of fully vested unrestricted stock were granted to certain non-employee Directors of the Company.
+Added: In fiscal 2025, 2024 and 2023, the Company granted a total of 1,662 , 1,475 and 1,575 shares of fully vested unrestricted stock, respectively, to its non-employee Directors.
Accordingly, compensation expense related to the unrestricted stock granted in each of fiscal 2025, 2024 and 2023 were recognized on the date of grant.
−Removed: In fiscal 2024, the Company granted a total of 5,004 stock appreciation rights to the Company’s non-employee Directors.
−Removed: In fiscal 2023, the Company granted a total of 6,864 stock appreciation rights to the Company’s non-employee Directors.
−Removed: In fiscal 2022, the Company granted a total of 9,750 stock appreciation rights to the Company’s non-employee Directors.
+Added: In fiscal 2025, 2024 and 2023, the Company granted a total of 4,938 , 5,004 and 6,864 stock appreciation rights, respectively, to its non-employee Directors.
Such stock appreciation rights were fully vested upon grant, expire on the earlier of the eighth anniversary of the grant date or the second anniversary of the date that the Director ceases to be a member of the Board of Directors and must be settled in stock at the time of exercise.
3 unchanged sentences
All stock appreciation rights issued to employees were granted with an exercise price equal to the fair value of the Company’s Common Stock on the date of grant.
−Removed: Stock appreciation rights generally vest 20 % on each anniversary of the grant date over a five-year period and expire ten years after the grant date.
+Added: Stock appreciation rights generally vest one-third on each anniversary of the grant date over a three-year period and expire ten years after the grant date.
Share-Based Awards granted to the Company’s non-employee Directors were fully vested as of the date of grant.
Non-employee Director Share-Based Award grants in the form of stock appreciation rights expire on the earlier of the eighth anniversary of the grant date or the second anniversary of the date that the Director ceases to be a member of the Board of Directors.
−Removed: Time-based restricted stock units granted to employees generally vest 20 % on each anniversary of the grant date over a five-year period.
+Added: Time-based restricted stock units granted to employees generally vest one-third on each anniversary of the grant date over a three-year period.
Generally, performance-based restricted stock units granted to employees are earned based on whether and the extent to which the Company achieves certai n revenue and operating margin targets.
21 unchanged sentences
No such conversions occurred during each of fiscal 2024 and 2023.
−Removed: On October 24, 2023, the Company’s Board of Directors authorized a new share repurchase program to repurchase from time to time up to $ 100.0 million of its outstanding shares of Common Stock, inclusive of the amount which remained available under the existing share repurchase program approved on October 18, 2021.
+Added: On October 24, 2023, the Company’s Board of Directors authorized a new share repurchase program to repurchase up to $ 100.0 million of its outstanding shares of Common Stock, inclusive of the amount which remained available under the existing share repurchase program approved on October 18, 2021.
+Added: On April 8, 2025, the Company’s Board of Directors authorized a new share repurchase program to repurchase up to $ 100.0 million of its outstanding shares of Common Stock, inclusive of the amount which remained available under the existing share repurchase program approved in 2023.
Repurchases from time to time under the new 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.
−Removed: repurchase program has been funded to date with the Company’s available cash and will be funded in the future using the Company’s available cash or capacity under its Credit Agreement and may be suspended or discontinued at any time.
+Added: The share repurchase program has been funded to date with the Company’s available cash and will be funded in the future using the Company’s available cash or capacity under its Credit Agreement and may be suspended or discontinued at any time.
+Added: On April 8, 2025, the Company’s Board of Directors authorized a new
+Added: share repurchase program to repurchase up to $ 100.0 million of its outstanding shares of Common Stock, inclusive of the amount which remained available under the existing share repurchase program approved in 2023.
+Added: The Company repurchased 402,415 shares for an average price per share of $ 178.81 in fiscal 2025 and 139,556 shares for an average price per share of $ 170.40 in fiscal 2024 , and did no t repurchase any shares in fiscal 2023.
+Added: As of August 30, 2025, there was $ 40.6 million remaining to repurchase outstanding shares of Common Stock under the existing program.
On October 28, 2025, the Company’s Board of Directors declared increased quarterly cash dividends of $ 0.365 per share of Common Stock and $ 0.292 per share of Class B Common Stock, up from $ 0.350 and $ 0.280 per share, respectively.
1 unchanged sentence
The amount and timing of any future dividend payment is subject to the approval of the Board of Directors each quarter.
−Removed: During fiscal 2024, the Company repurchased 139,556 shares for an average price per share of $ 170.40 .
−Removed: During fiscal 2023, the Company did not repurchase any shares.
−Removed: During fiscal 2022, the Company repurchased 213,419 shares for an average price per share of $ 179.98 .
−Removed: As of August 31, 2024, there was $ 76.2 million remaining to repurchase outstanding shares of Common Stock under the existing program.
Accumulated Other Comprehensive Loss
19 unchanged sentences
Segment Reporting
−Removed: 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 alloc ate resources and assess performance.
−Removed: The Company’s chief operating decision-maker is the Company’s Chief Executive Officer.
−Removed: The Company has six operating segments based on the information reviewed by its Chief Executive Officer:
−Removed: Rental and Cleaning, Canadian Rental and Cleaning, MFG, Specialty Garments, First Aid and Corporate.
−Removed: Rental and Cleaning and Canadian Rental and Cleaning operating segments have been combined to form the U.S.
−Removed: and Canadian Rental and Cleaning reporting segment, and as a result, the Company has five reporting segments.
−Removed: and Canadian Rental and Cleaning reporting segment purchases, rents, cleans, delivers and sells, uniforms and protective clothing and non-garment items in the U.S.
−Removed: The laundry locations of the U.S.
−Removed: and Canadian Rental and Cleaning reporting segment are referred to by the Company as “industrial laundries” or “industrial laundry locations.”
−Removed: The MFG operating segment designs and manufactures uniforms and non-garment items primarily for the purpose of providing these goods to the U.S.
−Removed: and Canadian Rental and Cleaning reporting segment.
−Removed: MFG revenues are primarily generated when goods are shipped from the Company’s manufacturing facilities, or its subcontract manufacturers, to other Company locations.
−Removed: These intercompany revenues are recorded at a transfer price which is typically in excess of the actual manufacturing cost.
−Removed: Manufactured products are carried in inventory until placed in service at which time they are amortized at this transfer price.
−Removed: 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.
−Removed: Income before income taxes from MFG net of the intercompany MFG elimination offsets the merchandise amortization costs incurred by the U.S.
−Removed: 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.
−Removed: The Corporate operating segment consists of costs associated with the Company’s distribution center, sales and marketing, information systems, engineering, procurement, supply chain, accounting and finance, human resources, other general and administrative costs and interest expense.
−Removed: The revenues generated from the Corporate operating segment represent certain direct sales made by the Company directly from its distribution center.
−Removed: The products sold by this operating segment are the same products rented and sold by the U.S.
−Removed: and Canadian Rental and Cleaning reporting segment.
−Removed: 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.
−Removed: However, depreciation and amortization expense related to certain assets are reflected in income from operations and income before income taxes for the Corporate operating segment.
−Removed: The assets that give rise to this depreciation and amortization are included in the total assets of the U.S.
−Removed: and Canadian Rental and Cleaning reporting segment as this is how they are tracked and reviewed by the Company.
−Removed: The majority of expenses accounted for within the Corporate segment relate to costs of the U.S.
−Removed: and Canadian Rental and Cleaning segment, with the remainder of the costs relating to the Specialty Garment and First Aid segments.
−Removed: 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 certain customer locations.
−Removed: The First Aid operating segment sells first aid cabinet services and other safety supplies, provides certain safety training and maintains wholesale distribution and pill packaging operations for non-prescription medicines.
−Removed: The Company refers to the U.S.
−Removed: and Canadian Rental and Cleaning, MFG, and Corporate reporting segments combined as its “Core Laundry Operations,” which is included as a subtotal in the following tables (in thousands):
−Removed: and Canadian Rental and Cleaning
−Removed: Net intercompany MFG elimination
−Removed: Core Laundry Operations
−Removed: Specialty Garments
−Removed: Total consolidated revenues
−Removed: Operating income (loss):
−Removed: and Canadian Rental and Cleaning
−Removed: Net intercompany MFG elimination
−Removed: Core Laundry Operations
−Removed: Specialty Garments
−Removed: Total consolidated operating income
−Removed: Other (income) expense:
−Removed: Interest income, net
−Removed: Other expense, net
−Removed: Total consolidated other (income) expense, net
−Removed: Total consolidated income before income taxes
+Added: 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.
+Added: Prior to May 31, 2025, the Company organized its business into six operating segments:
+Added: Rental and Cleaning, Canadian Rental and Cleaning, Manufacturing (“MFG”), Specialty Garments Rental and Cleaning (“Specialty Garments”), First Aid and Corporate.
+Added: Rental and Cleaning and Canadian Rental and Cleaning operating segments were previously combined to form the U.S.
+Added: and Canadian Rental and Cleaning reporting segment, and as a result, the Company had five reporting segments.
+Added: The Company previously referred to its U.S.
+Added: and Canadian Rental and Cleaning, MFG, and Corporate segments combined as its “Core Laundry Operations.”
+Added: Beginning with the fourth quarter of 2025 , the Company reorganized its business into three reportable operating segments:
+Added: Uniform & Facility Service Solutions:
+Added: This reporting segment consolidates the former U.S.
+Added: and Canadian Rental and Cleaning, MFG and Corporate segments and includes our cleanroom solutions, which was previously part of the Specialty Garments reporting segment.
+Added: The Uniform & Facility Service Solutions reporting segment designs, manufactures, purchases, rents, cleans, delivers and sells, uniforms and protective clothing and non-garment items in the U.S.
+Added: The segment, through our cleanroom solutions, also purchases, rents, cleans, delivers and sells specialty garments and non-garment items primarily for cleanroom applications and provides cleanroom cleaning at limited customer locations.
+Added: Additionally, Uniform & Facility Service Solutions consists of our distribution center, sales and marketing, information systems, engineering, materials management, manufacturing planning, finance, budgeting, human resources, other general and administrative costs and interest expense.
+Added: First Aid & Safety Solutions:
+Added: We renamed our First Aid reporting segment as the First Aid & Safety Solutions reporting segment to better reflect the scope of services and products offered.
+Added: The First Aid & Safety Solutions reporting segment sells first aid cabinet services, non-prescription medicines and safety supplies, and provides certain safety training.
+Added: This reporting segment currently consists of our nuclear solutions, which was previously part of the Specialty Garments reporting segment with our cleanroom solutions.
+Added: The segment purchases, rents, cleans, delivers and sells, specialty garments and non-garment items primarily for nuclear applications.
+Added: The Company’s chief operating decision maker (the “CODM”) is the Chief Executive Officer .
+Added: The modifications to the Company’s reporting segments reflect how the CODM assesses performance and allocates resources.
+Added: The CODM uses segment revenues and segment operating income to assess performance and allocate resources.
+Added: The Company has recast prior certain period segment results to conform with the current presentation.
+Added: Asset information is not utilized by the CODM for purposes of assessing performance or allocating resources, and therefore such information has not been presented.
+Added: The following table includes our financial results by reportable segment for the periods indicated (in thousands):
+Added: As of and for
+Added: the year ended August 30, 2025
+Added: Uniform & Facility Service Solutions
+Added: First Aid & Safety Solutions
+Added: Cost of revenues
+Added: Selling and administrative expenses
Depreciation and amortization
−Removed: and Canadian Rental and Cleaning
−Removed: Net intercompany MFG elimination
−Removed: Core Laundry Operations
−Removed: Specialty Garments
−Removed: Total consolidated depreciation and amortization
+Added: Operating Income
Capital expenditures
−Removed: and Canadian Rental and Cleaning
−Removed: Net intercompany MFG elimination
−Removed: Core Laundry Operations
−Removed: Specialty Garments
−Removed: Total consolidated capital expenditures
−Removed: Total Assets:
−Removed: and Canadian Rental and Cleaning
−Removed: Net intercompany MFG elimination
−Removed: Core Laundry Operations
−Removed: Specialty Garments
−Removed: Total consolidated assets
+Added: As of and for
+Added: the year ended August 31, 2024
+Added: Uniform & Facility Service Solutions
+Added: First Aid & Safety Solutions
+Added: Cost of revenues
+Added: Selling and administrative expenses
+Added: Depreciation and amortization
+Added: Operating Income
+Added: Capital expenditures
+Added: As of and for
+Added: the year ended August 26, 2023
+Added: Uniform & Facility Service Solutions
+Added: First Aid & Safety Solutions
+Added: Cost of revenues
+Added: Selling and administrative expenses
+Added: Depreciation and amortization
+Added: Operating Income
+Added: Capital expenditures
The Company’s long-lived assets as of August 30, 2025 and August 31, 2024 and revenues and income before income taxes for fiscal 2025, 2024 and 2023 were attributed to the following countries (in thousands):
8 unchanged sentences
Related Party
−Removed: During fiscal 2024 and 2023 , the Company recognized $ 1.5 million and $ 1.6 million, respectively, of revenue with a company for which one member of the Company's Board of Directors was an executive officer for such periods.
+Added: During fiscal 2025, 2024 and 2023, the Company reco gnized $ 1.7 million, 1.5 million and $ 1.6 million, respectively, of revenues with a company for which a member of the Company’s Board of Directors served as senior officer for such periods.
+Added: During fiscal 2025 , the Company did no t record any material expenses with a related party.
During fiscal 2024 and 2023 , the Company recorded $ 2.1 million and $ 3.2 million, respectively, of expense with a company for which one member of the Company’s Board of Directors was an executive officer for a portion of such periods.
+Added: Such member of the Board of Directors is no longer an executive officer of the company, and as a result, no such expenses were categorized as related party during fiscal 2025.
Report of Independent Regist ered Public Accounting Firm
1 unchanged sentence
Opinion on the Financial Statements
−Removed: We have audited the accompanying consolidated balance sheets of UniFirst Corporation and subsidiaries (the “Company”) as of August 31, 2024 and August 26, 2023, the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for each of the three years in the period ended August 31, 2024, and the related notes and the financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”).
+Added: We have audited the accompanying consolidated balance sheets of UniFirst Corporation and subsidiaries (the “Company”) as of August 30, 2025 and August 31, 2024, the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for each of the three years in the period ended August 30, 2025, and the related notes (collectively referred to as the “consolidated financial statements”).
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at August 30, 2025 and August 31, 2024, and the results of its operations and its cash flows for each of the three years in the period ended August 30, 2025, in conformity with U.S.
generally accepted accounting principles.
−Removed: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of August 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated November 14, 2024 expressed an adverse opinion thereon.
+Added: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of August 30, 2025, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated October 29, 2025 expressed an adverse opinion thereon.
Basis for Opinion
13 unchanged sentences
The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
−Removed: Self-Insurance Accruals
+Added: Self-Insured Workers’ Compensation, Vehicles and General Liability Insurance-related Accruals
Description of the Matter
−Removed: As disclosed in Note 9, as of August 31, 2024, the Company had recognized current and long-term insurance related liabilities of $32.0 million and $63.6 million, respectively.
−Removed: As discussed in Note 1 to the Company’s consolidated financial statements, the Company is self-insured for certain obligations related to health, workers’ compensation, vehicles and general liability programs and judgments and estimates are used by the Company in determining the potential value associated with reported claims and for events that have occurred but have not been reported.
−Removed: Auditing management’s estimate of the portion of the insurance related liabilities related to workers’ compensation, vehicles and general liability is highly judgmental due to the significant uncertainty in the potential values of reported claims and incurred but not reported claims and the application of significant management judgment in making those estimates.
−Removed: The reserve estimate is sensitive to assumptions used to estimate the liability for reported claims and to estimate the value of claims that have been incurred but have not been reported.
+Added: As disclosed in Note 9 to the Company’s consolidated financial statements, as of August 30, 2025, the Company had recognized current and long-term insurance related liabilities of $36.1 million and $73.4 million, respectively.
+Added: As discussed in Note 1 to the Company’s consolidated financial statements, the Company is self-insured for certain obligations related to workers’ compensation, vehicles and general liability programs and judgments and estimates are used by the Company in determining the potential value associated with reported claims and for events that have occurred but have not been reported.
+Added: Auditing management’s estimate of the portion of the insurance related liabilities related to workers’ compensation, vehicles and general liability is highly judgmental due to the significant estimation uncertainty in the potential values of reported claims and incurred but not reported claims and the application of management judgment in assessing the methodologies and certain assumptions used in making those estimates.
+Added: The reserve estimate relies on inputs such as historical claims experience and other factors to estimate the liability for reported claims and to estimate the value of claims that have been incurred but have not been reported.
How We Addressed the Matter in Our Audit
−Removed: To audit the self-insurance accrual, our procedures included, among others, testing of the significant inputs used in management’s analysis, performing transactional testing over the completeness and accuracy of claims data and vouching payments made to third parties.
−Removed: We also reviewed the Company’s contractual self-insured retentions, deductibles, and other coverage limits.
−Removed: Furthermore, we involved our actuarial specialists to assist in evaluating the significant assumptions and methodologies used by management to determine the estimate of the reserve.
−Removed: We then compared the Company’s estimate of the reserve amount to a range which our actuarial specialist developed based on independently selected assumptions.
+Added: To audit the self-insurance accrual, our procedures included, among others, assessing the methodologies used to estimate the insurance reserve, performing testing of significant inputs including transactional testing over the completeness and accuracy of historical claims data and vouching payments made to third parties.
+Added: In addition, we compared the Company’s contractual self-insured retentions, deductibles, and coverage limits within the estimation to the Company’s contractual agreements.
+Added: Furthermore, we involved our actuarial specialists in evaluating the methodologies used by management to determine the estimate of the reserve.
+Added: We then compared the Company’s estimate of the reserve amount to a range which our actuarial specialist developed based on independently selected actuarial methodologies and assumptions.
/s/ Ernst & Young LLP
1 unchanged sentence
Boston, Massachusetts
−Removed: November 14, 2024
+Added: October 29, 2025
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.