What changed in this filing

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Item 1. Financial Statements

2021-04-08 compared with 2021-01-07 · 181 added, 98 removed, 460 unchanged (38% of the section changed)

3 unchanged sentences

Thirteen weeks ended

Twenty-six weeks ended

(In thousands, except per share data)

November 28, 2020

November 30, 2019

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Operating expenses:

6 unchanged sentences

Interest income, net

Other expense, net

Total other (income) expense, net

Other (income) expense, net

Total other income, net

Income before income taxes

15 unchanged sentences

Thirteen weeks ended

Twenty-six weeks ended

(In thousands)

November 28, 2020

November 30, 2019

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Other comprehensive income (loss):

Foreign currency translation adjustments

Pension benefit liabilities

Change in fair value of derivatives, net of income taxes

Derivative financial instruments reclassified to earnings

Other comprehensive income

Other comprehensive income (loss)

Comprehensive income

4 unchanged sentences

(In thousands, except share and par value data)

November 28, 2020

February 27, 2021

August 29, 2020

30 unchanged sentences

15,230,265 and

15,251,176 shares issued and outstanding as of November 28, 2020 and

15,251,176 shares issued and outstanding as of February 27, 2021 and

August 29, 2020, respectively

1 unchanged sentence

20,000,000 shares authorized;

shares issued and outstanding as of November 28, 2020 and August 29, 2020,

shares issued and outstanding as of February 27, 2021 and August 29, 2020,

Capital surplus

16 unchanged sentences

($ 0.20 per share)

Repurchase of Common Stock

Share-based compensation, net (1)

Share-based awards exercised, net (2)

Repurchase of Common Stock

Balance, November 30, 2019

Change in fair value of derivatives

Foreign currency translation

Pension benefit liabilities, net

Dividends declared Common Stock

($ 0.25 per share)

Dividends declared Class B Common Stock

($ 0.20 per share)

Repurchase of Common Stock

Share-based compensation, net (1)

Share-based awards exercised, net (2)

Balance, February 29, 2020

(In thousands)

11 unchanged sentences

Balance, November 28, 2020

Change in fair value of derivatives

Foreign currency translation

Dividends declared Common Stock

($ 0.25 per share)

Dividends declared Class B Common Stock

($ 0.20 per share)

Repurchase of Common Stock

Share-based compensation, net (1)

Share-based awards exercised, net (2)

Balance, February 27, 2021

These amounts are shown net of any shares withheld by the Company to satisfy certain tax withholdings obligations in connection with the vesting of certain shares of restricted stock or restricted stock units.

4 unchanged sentences

UniFirst Corporation and Subsidiaries

Thirteen weeks ended

Twenty-six weeks ended

(In thousands)

November 28, 2020

November 30, 2019

February 27, 2021

February 29, 2020

Cash flows from operating activities:

2 unchanged sentences

Amortization of deferred financing costs

Loss on sale of property, plant & equipment

Share-based compensation

22 unchanged sentences

Effect of exchange rate changes

Net decrease in cash, cash equivalents and short-term investments

Net increase in cash, cash equivalents and short-term investments

Cash, cash equivalents and short-term investments at beginning of period

15 unchanged sentences

Recent Accounting Pronouncements

In June 2016, the FASB issued an accounting standard update that introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments including trade receivables.

In June 2016, the Financial Accounting Standards Board (the “FASB”) issued an accounting standard update that introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments including trade receivables.

The estimate of expected credit losses requires entities to incorporate historical information, current information and reasonable and supportable forecasts.

3 unchanged sentences

In August 2018, the FASB issued updated guidance to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans.

This guidance will be effective for annual reporting periods, and any interim periods within those annual periods, ending after December 15, 2020 and will be required to be applied on a retrospective basis with early adoption permitted.

This guidance will be effective for annual reporting periods ending after December 15, 2020 and will be required to be applied on a retrospective basis with early adoption permitted.

Accordingly, the standard will be effective for the Company on August 29, 2021.

11 unchanged sentences

Revenue Recognition

The following table presents the Company’s revenues for the thirteen weeks ended November 28, 2020 and November 30, 2019, respectively, disaggregated by service type:

The following table presents the Company’s revenues for the thirteen and twenty-six weeks ended February 27, 2021 and February 29, 2020, respectively, disaggregated by service type:

Thirteen Weeks Ended

November 28, 2020

November 30, 2019

Twenty-Six Weeks Ended

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

(In thousands, except percentages)

6 unchanged sentences

Revenue Recognition Policy

During the thirteen weeks ended November 28, 2020 and November 30, 2019, approximately 91.0 % and 91.6 %, respectively, of the Company’s revenues were derived from fees for route servicing of Core Laundry Operations, Specialty Garments, and First Aid customers performed by the Company’s employees at the customer’s location of business.

During the thirteen weeks ended February 27, 2021 and February 29, 2020, approximately 91.1 % and 90.2 %, respectively, of the Company’s revenues were derived from fees for route servicing of Core Laundry Operations, Specialty Garments, and First Aid performed by the Company’s employees at the customer’s location of business.

During the twenty-six weeks ended February 27, 2021 and February 29, 2020, approximately 91.1 % and 90.9 %, respectively, of the Company’s revenues were derived from fees for route servicing of Core Laundry Operations, Specialty Garments, and First Aid performed by the Company’s employees at the customer’s location of business.

Revenues from the Company’s route servicing customer contracts represent a single performance obligation.

8 unchanged sentences

The Company’s performance period generally corresponds with the monthly invoice period.

No significant constraints on the Company’s revenue recognition were applied during the thirteen weeks ended November 28, 2020 or November 30, 2019.

No significant constraints on the Company’s revenue recognition were applied during the thirteen and twenty-six weeks ended February 27, 2021 and February 29, 2020.

The Company reassesses these estimates during each reporting period.

9 unchanged sentences

The current portion is included in prepaid expenses and other current assets and the non-current portion is included in other assets on the Company’s consolidated balance sheets.

As of November 28, 2020, the current and non-current assets related to deferred commissions totaled $ 13.3 million and $ 57.3 million, respectively.

As of February 27, 2021, the current and non-current assets related to deferred commissions totaled $ 13.8 million and $ 58.3 million, respectively.

As of August 29, 2020, the current and non-current assets related to deferred commissions totaled $ 13.3 million and $ 55.6 million, respectively.

During the thirteen weeks ended November 28, 2020 and November 30, 2019, the Company recorded $ 3.5 million and $ 3.5 million, respectively, of amortization expense related to deferred commissions.

During the thirteen weeks ended November 28, 2020, the Company completed 2 business acquisitions with an aggregate purchase price of approximately $ 0.7 million, primarily all of which was assigned to intangible assets.

The initial allocations of the purchase prices are incomplete with respect to certain assets acquired.

During the thirteen weeks ended February 27, 2021 and February 29, 2020, the Company recorded $ 3.6 million and $ 3.4 million, respectively, of amortization expense related to deferred commissions.

During the twenty-six weeks ended February 27, 2021 and February 29, 2020, the Company recorded $ 7.1 million and $ 6.7 million, respectively, of amortization expense related to deferred commissions.

This expense is classified in selling and administrative expenses on the consolidated statements of income.

During the twenty-six weeks ended February 27, 2021, the Company completed four business acquisitions with an aggregate purchase price of approximately $ 7.5 million, which was primarily assigned to goodwill and intangible assets.

The results of operations of these acquisitions have been included in the Company’s consolidated financial results since their respective acquisition dates.

These acquisitions were not significant in relation to the Company’s consolidated financial results and, therefore, pro-forma financial information has not been presented.

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements

The assets or liabilities measured at fair value on a recurring basis are summarized in the tables below (in thousands):

As of November 28, 2020

As of February 27, 2021

Cash equivalents

2 unchanged sentences

Total assets at fair value

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

As of August 29, 2020

13 unchanged sentences

dollars at fixed exchange rates in order to manage its exposure related to the certain forecasted Canadian dollar denominated sales of one of its subsidiaries.

These contracts are included in prepaid expenses and other current assets and other long-term assets as of November 28, 2020 and August 29, 2020.

These contracts are included in prepaid expenses and other current assets and other long-term assets as of February 27, 2021 and August 29, 2020.

The fair value of the forward contracts is based on similar exchange traded derivatives and are, therefore, included within Level 2 of the fair value hierarchy.

Derivative Instruments and Hedging Activities

As of November 28, 2020, the Company had forward contracts with a notional value of approximately $ 4.0 million CAD outstanding and recorded the fair value of the contracts of a nominal amount in other long-term assets and prepaid expenses and other current assets with a corresponding nominal gain in accumulated other comprehensive loss, which was recorded net of tax.

During the thirteen weeks ended November 28, 2020, the Company reclassified a nominal amount from accumulated other comprehensive income to revenue, related to the derivative financial instruments.

The gain on these forward contracts that resulted in a decrease to accumulated other comprehensive loss as of November 28, 2020 is expected to be reclassified to revenues prior to its maturity on February 25, 2022.

As of February 27, 2021, the Company had forward contracts with a notional value of approximately $ 3.0 million CAD outstanding and recorded the fair value of the contracts of a nominal amount in prepaid expenses and other current assets with a corresponding nominal loss in accumulated other comprehensive loss, which was recorded net of tax.

During the thirteen and twenty-six weeks ended February 27, 2021, the Company reclassified a nominal amount from accumulated other comprehensive loss to revenue, related to the derivative financial instruments.

The loss on these forward contracts that resulted in an increase to accumulated other comprehensive loss as of February 27, 2021 is expected to be reclassified to revenues prior to its maturity on February 25, 2022.

Employee Benefit Plans

3 unchanged sentences

The Company matches a portion of the employee’s contribution and may make an additional contribution at its discretion.

Contributions charged to expense under the plan for the thirteen weeks ended November 28, 2020 and November 30, 2019 were $ 5.8 million and $ 5.5 million, respectively

Contributions charged to expense under the plan for the thirteen weeks ended February 27, 2021 and February 29, 2020 were $ 4.3 million and $ 5.0 million, respectively.

Contributions charged to expense under the plan for the twenty-six weeks ended February 27, 2021 and February 29, 2020 were $ 10.1 million and $ 10.5 million, respectively.

Pension Plans and Supplemental Executive Retirement Plans

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

The Company maintains an unfunded Supplemental Executive Retirement Plan for certain eligible employees of the Company and two frozen non-contributory defined benefit pension plans.

The amounts charged to expense related to these plans for the thirteen weeks ended November 28, 2020 and November 30, 2019 were $ 0.8 million and $ 0.7 million, respectively.

The amounts charged to expense related to these plans for the thirteen weeks ended February 27, 2021 and February 29, 2020 were $ 0.8 million and $ 0.3 million, respectively.

The amounts charged to expense related to these plans for the twenty-six weeks ended February 27, 2021 and February 29, 2020 were $ 1.5 million and $ 0.4 million, respectively.

Income Per Share

1 unchanged sentence

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

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

Thirteen Weeks Ended

November 28, 2020

November 30, 2019

Twenty-Six Weeks Ended

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Net income available to shareholders

8 unchanged sentences

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

For the thirteen weeks ended November 28, 2020 and November 30, 2019, the Company’s diluted income per share assumes the conversion of all vested Class B Common Stock into Common Stock and uses the two-class method for its unvested participating shares.

The following tables set forth the computation of diluted income per share of Common Stock for the thirteen weeks ended November 28, 2020 and November 30, 2019 (in thousands, except per share data):

Thirteen weeks ended November 28, 2020

For the thirteen and twenty-six weeks ended February 27, 2021 and February 29, 2020, the Company’s diluted income per share assumes the conversion of all vested Class B Common Stock into Common Stock and uses the two-class method for its unvested participating shares.

The following tables set forth the computation of diluted income per share of Common Stock for the thirteen and twenty-six weeks ended February 27, 2021 and February 29, 2020 (in thousands, except per share data):

Thirteen weeks ended February 27, 2021

Twenty-six weeks ended February 27, 2021

As reported - Basic

3 unchanged sentences

As reported – Diluted

Thirteen Weeks Ended November 30, 2019

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

Thirteen weeks ended February 29, 2020

Twenty-six weeks ended February 29, 2020

As reported - Basic

3 unchanged sentences

As reported – Diluted

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

Share-based awards that would result in the issuance of 11,008 shares of Common Stock were excluded from the calculation of diluted income per share for the thirteen weeks ended November 28, 2020 because they were anti-dilutive.

Share-based awards that would result in the issuance of 178 shares of Common Stock were excluded from the calculation of diluted income per share for the thirteen weeks ended November 30, 2019 because they were anti-dilutive.

Share-based awards that would result in the issuance of 2,379 and 11,566 shares, respectively, of Common Stock were excluded from the calculation of diluted income per share for the thirteen and twenty-six weeks ended February 27, 2021 because they were anti-dilutive.

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

Inventories are stated at the lower of cost or net realizable value, net of any reserve for excess and obsolete inventory.

4 unchanged sentences

The Company uses the first-in, first-out (“FIFO”) method to value its inventories.

The components of inventory as of November 28, 2020 and August 29, 2020 were as follows (in thousands):

November 28, 2020

The components of inventory as of February 27, 2021 and August 29, 2020 were as follows (in thousands):

February 27, 2021

August 29, 2020

11 unchanged sentences

Goodwill recorded during the period

Balance as of November 28, 2020

Balance as of February 27, 2021

Intangible assets, net in the Company’s accompanying Consolidated Balance Sheets are as follows (in thousands):

Gross Carrying

November 28, 2020

February 27, 2021

Customer contracts

7 unchanged sentences

The Company continues to depreciate, on a straight-line basis, the amount added to property, plant and equipment and recognizes accretion expense in connection with the discounted liability over the various remaining lives which range from approximately 1 to 23 years .

A reconciliation of the Company’s asset retirement liability for the thirteen weeks ended November 28, 2020 was as follows (in thousands):

November 28, 2020

A reconciliation of the Company’s asset retirement liability for the twenty-six weeks ended February 27, 2021 was as follows (in thousands):

February 27, 2021

Beginning balance as of August 29, 2020

1 unchanged sentence

Effect of exchange rate changes

Balance as of November 28, 2020

Balance as of February 27, 2021

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

12 unchanged sentences

The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table presents the operating lease cost and information related to the operating lease right-of-use assets, net and operating lease liabilities for the thirteen weeks ended November 28, 2020:

The following table presents the operating lease cost and information related to the operating lease right-of-use assets, net and operating lease liabilities for the twenty-six weeks ended February 27, 2021:

(In thousands, except lease term and discount rate)

5 unchanged sentences

Weighted-average discount rate - operating leases

The contractual future minimum lease payments of the Company's operating lease liabilities by fiscal year are as follows as of November 28, 2020:

The contractual future minimum lease payments of the Company's operating lease liabilities by fiscal year are as follows as of February 27, 2021:

(In thousands)

2021 (remaining nine months)

2021 (remaining six months)

Total payments

3 unchanged sentences

The Company and its operations are subject to various federal, state and local laws and regulations governing, among other things, air emissions, wastewater discharges, and the generation, handling, storage, transportation, treatment and disposal of hazardous wastes and other substances.

In particular, industrial laundries currently use and must dispose of detergent waste water and other residues, and, in the past, used perchloroethylene and other dry-cleaning solvents.

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.

The Company is attentive to the environmental concerns surrounding the disposal of these materials and has, through the years, taken measures to avoid their improper disposal.

12 unchanged sentences

The Company has accrued certain costs related to certain sites, including but not limited to sites in Woburn and Somerville, Massachusetts, as it has been determined that the costs are probable and can be reasonably estimated.

The Company has potential exposure related to a parcel of land (the “Central Area”) related to a site in Woburn, Massachusetts.

Currently, the consent decree for the Woburn site does not define or require any remediation work in the Central Area.

The Company, together with multiple other companies, is party to a consent decree related to its property and parcels of land (the “Central Area”) at a site in Woburn, Massachusetts.

The United States Environmental Protection Agency (the “EPA”) has provided the Company and other signatories to the consent decree with comments on the design and implementation of groundwater and soil remedies at the Woburn site and investigation of environmental conditions in the Central Area.

The consent decree does not address any remediation work that may be required in the Central Area.

The Company, and other signatories, have implemented and proposed to do additional work at the Woburn site but many of the EPA’s comments remain to be resolved.

19 unchanged sentences

Where it believes that both the amount of a particular liability and the timing of the payments are reliably determinable, the Company adjusts the cost in current dollars using a rate of 3 % for inflation until the time of expected payment and discounts the cost to present value using current risk-free interest rates.

As of November 28, 2020, the risk-free interest rates utilized by the Company ranged from 0.8 % to 1.6 %.

As of February 27, 2021, the risk-free interest rates utilized by the Company ranged from 1.4 % to 2.2 %.

For environmental liabilities that have been discounted, the Company includes interest accretion, based on the effective interest method, in selling and administrative expenses on the accompanying Consolidated Statements of Income.

The changes to the Company’s environmental liabilities for the thirteen weeks ended November 28, 2020 were as follows (in thousands):

November 28, 2020

Beginning balance as of August 29, 2020

The changes to the Company’s environmental liabilities for the twenty-six weeks ended February 27, 2021 were as follows (in thousands):

February 27, 2021

Balance as of August 29, 2020

Costs incurred for which reserves have been provided

2 unchanged sentences

Changes in discount rates

Balance as of November 28, 2020

Anticipated payments and insurance proceeds of currently identified environmental remediation liabilities as of November 28, 2020, for the next five fiscal years and thereafter, as measured in current dollars, are reflected below.

Balance as of February 27, 2021

Anticipated payments and insurance proceeds of currently identified environmental remediation liabilities as of February 27, 2021, for the next five fiscal years and thereafter, as measured in current dollars, are reflected below.

(In thousands)

4 unchanged sentences

Effect of discounting

Balance as of November 28, 2020

Balance as of February 27, 2021

Estimated insurance proceeds are primarily received from an annuity received as part of a legal settlement with an insurance company.

1 unchanged sentence

Annual proceeds received but not expended in the current year accumulate in this account and may be used in future years for costs related to this site through the year 2027.

As of November 28, 2020, the balance in this escrow account, which is held in a trust and is not recorded in the Company’s accompanying Consolidated Balance Sheet, was approximately $ 4.5 million.

As of February 27, 2021, the balance in this escrow account, which is held in a trust and is not recorded in the Company’s accompanying Consolidated Balance Sheet, was approximately $ 4.5 million.

Also included in estimated insurance proceeds are amounts the Company is entitled to receive pursuant to legal settlements as reimbursements from three insurance companies for estimated costs at the site in Uvalde, Texas.

9 unchanged sentences

Effective tax rate

The Company’s effective tax rate for the thirteen weeks ended November 28, 2020 was 25.0 % as compared to 22.1 % for the corresponding period in the prior year.

The increase in the effective tax rate in the thirteen weeks ended November 28, 2020 as compared to the corresponding period in the prior year was due to the release of certain tax reserves.

The Company’s effective tax rate for the thirteen weeks ended February 27, 2021 was 22.7 % as compared to 24.2 % for the corresponding period in the prior year.

The Company’s effective tax rate for the twenty-six weeks ended February 27, 2021 was 24.0 % as compared to 23.0 % for the corresponding period in the prior year.

The increase in the effective tax rate in the twenty-six weeks ended February 27, 2021 as compared to the corresponding period in the prior year was due to the release of certain tax reserves.

Uncertain tax positions

The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense, which is consistent with the recognition of these items in prior reporting periods.

During the thirteen weeks ended November 28, 2020, there were no material changes in the amount of unrecognized tax benefits or the amount accrued for interest and penalties.

During the twenty-six weeks ended February 27, 2021, there were no material changes in the amount of unrecognized tax benefits or the amount accrued for interest and penalties.

and Canadian federal income tax statutes have lapsed for filings up to and including fiscal years 2015 and 2012, respectively.

2 unchanged sentences

Long-Term Debt

The Company has a $ 250 million unsecured revolving credit agreement (the “Credit Agreement”) with a syndicate of banks, which matures on April 11, 2021 .

Under the Credit Agreement, the Company is able to borrow funds at variable interest rates based on, at its election, the Eurodollar rate or a base rate, plus in each case a spread based on the Company’s consolidated funded debt ratio.

On March 26, 2021, the Company entered into an amended and restated $ 175.0 million unsecured revolving credit agreement (the “2021 Credit Agreement”) with a syndicate of banks, which matures on March 26, 2026 .

The 2021 Credit Agreement amended and restated the Company’s prior Credit Agreement (defined below), which was scheduled to mature on April 11, 2021 .

Under the 2021 Credit Agreement, the Company is able to borrow funds at variable interest rates based on, at the Company’s election, the Eurodollar rate or a base rate, plus in each case a spread based on the Company’s consolidated funded debt ratio.

Availability of credit requires compliance with certain financial and other covenants, including a maximum consolidated funded debt ratio and minimum consolidated interest coverage ratio as defined in the 2021 Credit Agreement.

The Company tests its compliance with these financial covenants on a fiscal quarterly basis.

As of November 28, 2020, the interest rates applicable to the Company’s borrowings under the Credit Agreement would be calculated as LIBOR plus 75 basis points at the time of the respective borrowing.

As of November 28, 2020, the Company had no outstanding borrowings and had outstanding letters of credit amounting to $ 72.7 million, leaving $ 177.3 million available for borrowing under the Credit Agreement.

As of November 28, 2020, the Company was in compliance with all covenants under the Credit Agreement.

Prior to March 26, 2021, the Company had a $ 250 million unsecured revolving credit agreement (the “Credit Agreement”) with a syndicate of banks, which was scheduled to mature on April 11, 2021 .

Availability of credit required compliance with certain financial and other covenants, including a maximum consolidated funded debt ratio and minimum consolidated interest coverage ratio as defined in the Credit Agreement.

The Company tested its compliance with these financial covenants on a fiscal quarterly basis.

As of February 27, 2021, the interest rates applicable to the Company’s borrowings under the Credit Agreement would be calculated as LIBOR plus 75 basis points at the time of the respective borrowing.

As of February 27, 2021, the Company had no outstanding borrowings and had outstanding letters of credit amounting to $ 67.5 million, leaving $ 182.5 million available for borrowing under the Credit Agreement.

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

As of February 27, 2021 , the Company was in compliance with all covenants under the Credit Agreement.

Accumulated Other Comprehensive Loss

The changes in each component of accumulated other comprehensive loss, net of tax, for the thirteen weeks ended November 28, 2020 and November 30, 2019 were as follows (in thousands):

Thirteen Weeks Ended November 28, 2020

The changes in each component of accumulated other comprehensive loss, net of tax, for the thirteen and twenty-six weeks ended February 27, 2021 and February 29, 2020 were as follows (in thousands):

Thirteen weeks ended February 27, 2021

Instruments (1)

Comprehensive

Beginning balance as of August 29, 2020

Balance as of November 28, 2020

Other comprehensive income (loss) before reclassification

1 unchanged sentence

comprehensive loss

Net current period other comprehensive (loss) income

Ending balance as of November 28, 2020

Net current period other comprehensive income (loss)

Balance as of February 27, 2021

Twenty-six weeks ended February 27, 2021

Instruments (1)

Comprehensive

Balance as of August 29, 2020

Other comprehensive income (loss) before reclassification

Amounts reclassified from accumulated other

comprehensive loss

Net current period other comprehensive income (loss)

Balance as of February 27, 2021

Thirteen weeks ended February 29, 2020

Instruments (1)

Comprehensive

Balance as of November 30, 2019

Other comprehensive income (loss) before reclassification

Amounts reclassified from accumulated other

comprehensive loss

Net current period other comprehensive income (loss)

Balance as of February 29, 2020

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

Thirteen weeks ended November 30, 2019

Twenty-six weeks ended February 29, 2020

Instruments (1)

1 unchanged sentence

Balance as of August 31, 2019

Other comprehensive (loss) income before reclassification

Other comprehensive income before reclassification

Amounts reclassified from accumulated other

comprehensive loss

Net current period other comprehensive (loss) income

Ending balance as of November 30, 2019

Net current period other comprehensive income

Balance as of February 29, 2020

Amounts are shown net of tax

Amounts reclassified from accumulated other comprehensive loss, net of tax, for the thirteen weeks ended November 28, 2020 and November 30, 2019 were as follows (in thousands):

Amounts reclassified from accumulated other comprehensive loss, net of tax, for the thirteen and twenty-six weeks ended February 27, 2021 and February 29, 2020 were as follows (in thousands):

Thirteen weeks ended

November 28, 2020

November 30, 2019

Twenty-six weeks ended

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Pension benefit liabilities (net):

Reclassification to income statement (a)

Total, net of tax

Derivative financial instruments, net:

Forward contracts (a)

Forward contracts (b)

Total, net of tax

Total amounts reclassified, net of tax

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

Amounts included in revenues in the accompanying Consolidated Statements of Income.

16 unchanged sentences

Income before income taxes from MFG net of the intercompany MFG elimination offsets the merchandise amortization costs incurred by the U.S.

and Canadian Rental and Cleaning reporting segment as the merchandise costs of this reporting segment are amortized and recognized based on inventories purchased from MFG at the transfer price which is above the Company’s manufacturing cost.

and Canadian Rental and Cleaning reporting segment as the merchandise costs of this

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

reporting segment are amortized and recognized based on inventories purchased from MFG at the transfer price which is above the Company’s manufacturing cost.

The Corporate operating segment consists of costs associated with the Company’s distribution center, sales and marketing, information systems, engineering, procurement, supply chain, accounting and finance, human resources, other general and administrative costs and interest expense.

13 unchanged sentences

Thirteen weeks ended

November 28, 2020

February 27, 2021

Operating income (loss)

1 unchanged sentence

Income (loss) before taxes

November 30, 2019

February 29, 2020

Operating income (loss)

1 unchanged sentence

Income (loss) before taxes

Twenty-six weeks ended

February 27, 2021

Operating income (loss)

Interest income, net

Income (loss) before taxes

February 29, 2020

Operating income (loss)

Interest income, net

Income (loss) before taxes

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

Shares Repurchased and Dividends

On October 23, 2019, the Company announced that it would be raising its quarterly dividend to $ 0.25 per share for Common Stock and to $ 0.20 per share for Class B Common Stock, up from $ 0.1125 and $ 0.09 per share, respectively.

On October 23, 2019, the Company announced that it would be raising its quarterly dividend to $ 0.25 per share of Common Stock and to $ 0.20 per share of Class B Common Stock, up from $ 0.1125 and $ 0.09 per share, respectively.

The amount and timing of any dividend payment is subject to the approval of the Board of Directors each quarter.

3 unchanged sentences

The share repurchase program will be funded using the Company’s available cash or capacity under its 2021 Credit Agreement and may be suspended or discontinued at any time.

As of November 28, 2020, the Company had repurchased a total of 355,917 shares for an average price per share of $ 167.12 under the share repurchase program using cash on hand.

During the thirteen weeks ended November 28, 2020, the Company repurchased 41,000 shares for an average price per share of $ 176.01 .

During the thirteen weeks ended November 30, 2019, the Company repurchased 50,600 shares for an average price per share of $ 197.11 .

As of February 27, 2021, the Company had repurchased a total of 368,117 shares for an average price per share of $ 167.87 under the share repurchase program using cash on hand.

During the thirteen and twenty-six weeks ended February 27, 2021, the Company repurchased 12,200 and 53,200 shares for an average price per share of $ 189.96 and $ 179.21 , respectively.

During the thirteen weeks and twenty-six weeks ended February 29, 2020, the Company repurchased 20,500 and 71,100 shares for an average price per share of $ 206.34 and $ 199.77 , respectively.

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.

What changed 10-Q

Item 1. Financial Statements