What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-04-07 compared with 2022-01-06 · 176 added, 94 removed, 467 unchanged (37% of the section changed)

3 unchanged sentences

Thirteen weeks ended

Twenty-six weeks ended

(In thousands, except per share data)

November 27, 2021

November 28, 2020

February 26, 2022

February 27, 2021

February 26, 2022

February 27, 2021

Operating expenses:

6 unchanged sentences

Interest income, net

Other expense, net

Total other 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 27, 2021

November 28, 2020

February 26, 2022

February 27, 2021

February 26, 2022

February 27, 2021

Other comprehensive income (loss):

9 unchanged sentences

(In thousands, except share and par value data)

November 27, 2021

February 26, 2022

August 28, 2021

30 unchanged sentences

15,209,202 and

15,235,601 shares issued and outstanding as of November 27, 2021 and

15,235,601 shares issued and outstanding as of February 26, 2022 and

August 28, 2021, respectively

1 unchanged sentence

20,000,000 shares authorized;

shares issued and outstanding as of November 27, 2021 and August 28, 2021,

3,626,009 and

3,643,009 shares issued and outstanding as of February 26, 2022 and August 28, 2021,

Capital surplus

20 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

(In thousands)

11 unchanged sentences

Balance, November 27, 2021

Change in fair value of derivatives

Foreign currency translation

Dividends declared Common Stock

($ 0.30 per share)

Dividends declared Class B Common Stock

($ 0.24 per share)

Repurchase of Common Stock

Share-based compensation, net (1)

Share-based awards exercised, net (2)

Shares converted

Balance, February 26, 2022

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

4 unchanged sentences

UniFirst Corporation and Subsidiaries

Thirteen weeks ended

Twenty-six weeks ended

(In thousands)

November 27, 2021

November 28, 2020

February 26, 2022

February 27, 2021

Cash flows from operating activities:

2 unchanged sentences

Amortization of deferred financing costs

Loss on sale of property, plant and equipment

Share-based compensation

22 unchanged sentences

Effect of exchange rate changes

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

Net increase (decrease) in cash, cash equivalents and short-term investments

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

32 unchanged sentences

Revenue Recognition

The following table presents the Company’s revenues for the thirteen weeks ended November 27, 2021 and November 28, 2020, respectively, disaggregated by service type:

The following table presents the Company’s revenues for the thirteen and twenty-six weeks ended February 26, 2022 and February 27, 2021, respectively, disaggregated by service type:

Thirteen Weeks Ended

November 27, 2021

November 28, 2020

Twenty-Six Weeks Ended

February 26, 2022

February 27, 2021

February 26, 2022

February 27, 2021

(In thousands, except percentages)

4 unchanged sentences

Revenue Recognition Policy

During the thirteen weeks ended November 27, 2021 and November 28, 2020, approximately 91.2 % and 91.0 %, respectively, of the Company’s revenues were derived from fees for route servicing in our Core Laundry Operations, Specialty Garments, and First Aid segments performed by the Company’s employees at the customer’s location of business.

Revenues from the Company’s route

During the thirteen weeks ended February 26, 2022 and February 27, 2021, approximately 91.5 % and 91.1 %, respectively, of the Company’s revenues were derived from fees for route servicing of Core Laundry Operations, Specialty Garments, and First Aid segments performed by the Company’s employees at the customer’s location of business.

During the twenty-six weeks ended February 26, 2022 and February 27, 2021, approximately 91.4 % and 91.1 %, respectively, of the Company’s revenues were derived from fees for route servicing of Core Laundry Operations, Specialty Garments, and First Aid segments performed by the Company’s

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

servicing customer contracts represent a single performance obligation.

employees at the customer’s location of business.

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

The Company recognizes these revenues over time as services are performed based on the nature of s ervices provided and contractual rates (input method).

7 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 27, 2021 and November 28, 2020 .

No significant constraints on the Company’s revenue recognition were applied during the thirteen and twenty-six weeks ended February 26, 2022 and February 27, 2021 .

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 27, 2021, the current and non-current assets related to deferred commissions totaled $ 14.6 million and $ 62.6 million, respectively.

As of February 26, 2022, the current and non-current assets related to deferred commissions totaled $ 14.7 million and $ 63.4 million, respectively.

As of August 28, 2021, the current and non-current assets related to deferred commissions totaled $ 14.2 million and $ 60.6 million, respectively.

During the thirteen weeks ended November 27, 2021 and November 28, 2020, the Company recorded $ 3.8 million and $ 3.5 million, respectively, of amortization expense related to deferred commissions.

During the thirteen weeks ended February 26, 2022 and February 27, 2021, the Company recorded $ 3.8 million and $ 3.6 million, respectively, of amortization expense related to deferred commissions.

During the twenty-six weeks ended February 26, 2022 and February 27, 2021, the Company recorded $ 7.6 million and $ 7.1 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 thirteen weeks ended November 27, 2021, the Company completed four business acquisitions with an aggregate purchase price of approximately $ 0.5 million, all of which was assigned to intangible assets.

During the twenty-six weeks ended February 26, 2022, the Company completed eight business acquisitions with an aggregate purchase price of approximately $ 43.7 million, which was primarily assigned to goodwill and intangible assets.

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

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

1 unchanged sentence

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 27, 2021

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

As of February 26, 2022

Cash equivalents

19 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 27, 2021 and August 28, 2021.

These contracts are included in prepaid expenses and other current assets and other long-term assets as of February 26, 2022 and August 28, 2021.

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 27, 2021, the Company had forward contracts with a notional value of approximately 11.5 million CAD outstanding and recorded the fair value of the contracts of $ 0.1 million in prepaid expenses and other current assets and other long-term assets with a corresponding gain in accumulated other comprehensive loss of $ 0.1 million, which was recorded net of tax.

During the thirteen weeks ended November 27, 2021, the Company reclassified a nominal amount from accumulated other comprehensive loss 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 27, 2021 is expected to be reclassified to revenues prior to their maturity on February 25, 2022 and August 29, 2026, respectively.

As of February 26, 2022, the Company had forward contracts with a notional value of approximately 8.1 million CAD outstanding and recorded the fair value of the contracts of a nominal amount in prepaid expenses and other current assets and other long-term assets with a corresponding nominal gain in accumulated other comprehensive loss, which was recorded net of tax.

During the thirteen and twenty-six weeks ended February 26, 2022, the Company reclassified a nominal amount from accumulated other comprehensive loss to revenue, related to the derivative financial instruments.

The gain on these forward contracts that resulted in a decrease to accumulated other comprehensive loss as of February 26, 2022 is expected to be reclassified to revenues prior to their maturity on August 29, 2026.

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 27, 2021 and November 28, 2020 were $ 5.5 million and $ 5.8 million, respectively.

Contributions charged to expense under the plan for the thirteen weeks ended February 26, 2022 and February 27, 2021 were $ 3.9 million and $ 4.3 million, respectively.

Contributions charged to expense under the plan for the twenty-six weeks ended February 26, 2022 and February 27, 2021 were $ 9.5 million and $ 10.1 million, respectively.

Pension Plans and Supplemental Executive Retirement Plans

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

The amounts charged to expense related to these plans for the thirteen weeks ended November 27, 2021 and November 28, 2020 were $ 0.6 million and $ 0.8 million, respectively.

The amounts charged to expense related to these plans for the thirteen weeks ended February 26, 2022 and February 27, 2021 were $ 0.6 million and $ 0.8 million, respectively.

The amounts charged to expense related to these plans for the twenty-six weeks ended February 26, 2022 and February 27, 2021 were $ 1.3 million and $ 1.5 million, respectively.

Nonqualified Deferred Compensation Plan

The Company adopted the UniFirst Corporation Deferred Compensation Plan (the “NQDC Plan”) effective on February 1, 2022.

The NQDC Plan is an unfunded, nonqualified deferred compensation plan that allows eligible participants to voluntarily defer receipt of their salary and annual cash bonuses up to approved limits.

In its discretion, the Company may credit one or more additional contributions to participant accounts.

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.

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

participants are also eligible to have employer supplemental contributions and employer discretionary contributions credited to their NQDC Plan accounts.

The amounts of such contributions may differ from year to year and from participant to participant.

There were no employee or employer contributions charged to expense related to this plan for the thirteen or twenty-six weeks ended February 26, 2022 .

Income Per Share

2 unchanged sentences

Thirteen Weeks Ended

November 27, 2021

November 28, 2020

Twenty-Six Weeks Ended

February 26, 2022

February 27, 2021

February 26, 2022

February 27, 2021

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 27, 2021 and November 28, 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 weeks ended November 27, 2021 and November 28, 2020 (in thousands, except per share data):

Thirteen weeks ended November 27, 2021

For the thirteen and twenty-six weeks ended February 26, 2022 and February 27, 2021, 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 26, 2022 and February 27, 2021 (in thousands, except per share data):

Thirteen weeks ended February 26, 2022

Twenty-six weeks ended February 26, 2022

As reported - Basic

3 unchanged sentences

As reported – Diluted

Thirteen weeks ended November 28, 2020

Thirteen weeks ended February 27, 2021

Twenty-six weeks ended February 27, 2021

As reported - Basic

5 unchanged sentences

Notes to Consolidated Financial Statements (Continued)

Share-based awards that would result in the issuance of 11,119 shares of Common Stock were excluded from the calculation of diluted income per share for the thirteen weeks ended November 27, 2021 because they were anti-dilutive.

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 41,364 and 25,722 shares, respectively, of Common Stock were excluded from the calculation of diluted income per share for the thirteen and twenty-six weeks ended February 26, 2022 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.

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 27, 2021 and August 28, 2021 were as follows (in thousands):

November 27, 2021

The components of inventory as of February 26, 2022 and August 28, 2021 were as follows (in thousands):

February 26, 2022

August 28, 2021

9 unchanged sentences

Goodwill recorded during the period

Balance as of November 27, 2021

Balance as of February 26, 2022

Intangible assets, net in the Company’s consolidated balance sheets are as follows (in thousands):

Gross Carrying

November 27, 2021

February 26, 2022

Customer contracts

3 unchanged sentences

Other intangible assets

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

Asset Retirement Obligations

1 unchanged sentence

The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset.

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

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 27, 2021 was as follows (in thousands):

November 27, 2021

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 22 years .

A reconciliation of the Company’s asset retirement liability for the twenty-six weeks ended February 26, 2022 was as follows (in thousands):

February 26, 2022

Beginning balance as of August 28, 2021

1 unchanged sentence

Effect of exchange rate changes

Balance as of November 27, 2021

Balance as of February 26, 2022

Asset retirement obligations are included in long-term accrued liabilities in the Company’s consolidated balance sheets.

10 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 27, 2021:

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 26, 2022:

(In thousands, except lease term and discount rate)

Operating lease costs including short-term lease expense and variable lease costs, which were immaterial in the period

Operating lease costs including short-term lease expense

and variable lease costs, which were immaterial in the

Operating cash flow impacts

Cash paid for amounts included in the measurement of operating lease liabilities

Operating lease right-of-use assets obtained in exchange for new operating lease liabilities

Cash paid for amounts included in the measurement of

operating lease liabilities

Operating lease right-of-use assets obtained in exchange for

new operating lease liabilities

Weighted-average remaining lease term - operating leases

2 unchanged sentences

Notes to Consolidated Financial Statements (Continued)

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

The contractual future minimum lease payments of the Company's operating lease liabilities by fiscal year are as follows as of February 26, 2022:

(In thousands)

2022 (remaining nine months)

2022 (remaining six months)

Total payments

39 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 27, 2021, the risk-free interest rates utilized by the Company ranged from 0.81 % to 1.89 %.

As of February 26, 2022, the risk-free interest rates utilized by the Company ranged from 1.76 % to 2.37 %.

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 Company’s consolidated statements of income.

The changes to the Company’s environmental liabilities for the thirteen weeks ended November 27, 2021 were as follows (in thousands):

November 27, 2021

The changes to the Company’s environmental liabilities for the twenty-six weeks ended February 26, 2022 were as follows (in thousands):

February 26, 2022

Balance as of August 28, 2021

4 unchanged sentences

Changes in discount rates

Balance as of November 27, 2021

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

Balance as of February 26, 2022

Anticipated payments and insurance proceeds of currently identified environmental remediation liabilities as of February 26, 2022, 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 27, 2021

Balance as of February 26, 2022

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 27, 2021, the balance in this escrow account, which is held in a trust and is not recorded in the Company’s consolidated balance sheet, was approximately $ 4.7 million.

As of February 26, 2022, the balance in this escrow account, which is held in a trust and is not recorded in the Company’s consolidated balance sheet, was approximately $ 4.6 million.

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

The Company’s nuclear garment decontamination facilities are licensed by 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.

In addition, the Company’s international locations (Canada, the United Kingdom and the European Union) are regulated by equivalent respective jurisdictional authorities.

There can be no assurance that such regulation will not lead to material disruptions in the Company’s garment decontamination business.

In addition, the Company’s international locations (Canada, the United Kingdom and the

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

European Union) are regulated by equivalent respective jurisdictional authorities.

There can be no assurance that such regulation will not lead to material disruptions in the Company’s garment decontamination business.

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

4 unchanged sentences

Effective tax rate

The Company’s effective tax rate for the thirteen weeks ended November 27, 2021 was 24.6 % as compared to 25.0 % for the corresponding period in the prior year.

The decrease in the effective tax rate for the thirteen weeks ended November 27, 2021 as compared to the corresponding period in the prior year was due primarily to an increased tax benefit related to the foreign derived intangible income deduction during the thirteen weeks ended November 27, 2021.

The Company’s effective tax rate for the thirteen weeks ended February 26, 2022 was 19.0 % as compared to 22.7 % for the corresponding period in the prior year.

The Company’s effective tax rate for the twenty-six weeks ended February 26, 2022 was 22.7 % as compared to 24.0 % for the corresponding period in the prior year.

The decrease in the effective tax rate for the thirteen and twenty-six weeks ended February 26, 2022 as compared to the corresponding periods in the prior year was due primarily 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 27, 2021, there was a net increase in unrecognized tax position of $ 0.5 million related to existing reserves.

During the twenty-six weeks ended February 26, 2022, there was a net decrease in unrecognized tax position of $ 0.7 million related to existing reserves.

and Canadian federal income tax statutes have lapsed for filings up to and including fiscal years 2015 and 2013, respectively.

7 unchanged sentences

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

As of November 27, 2021, the interest rates applicable to the Company’s borrowings under the 2021 Credit Agreement would be calculated as LIBOR plus 1.00 % at the time of the respective borrowing.

As of November 27, 2021, the Company had no outstanding borrowings and had outstanding letters of credit amounting to $ 67.5 million, leaving $ 107.5 million available for borrowing under the 2021 Credit Agreement.

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

As of February 26, 2022, the interest rates applicable to the Company’s borrowings under the 2021 Credit Agreement would be calculated as LIBOR plus 1.00 % at the time of the respective borrowing.

As of February 26, 2022, the Company had no outstanding borrowings and had outstanding letters of credit amounting to $ 67.6 million, leaving $ 107.4 million available for borrowing under the 2021 Credit Agreement.

As of February 26, 2022, the Company was in compliance with all covenants under the 2021 Credit Agreement.

UniFirst Corporation and Subsidiaries

1 unchanged sentence

Accumulated Other Comprehensive Loss

The changes in each component of accumulated other comprehensive loss, net of tax, for the thirteen weeks ended November 27, 2021 and November 28, 2020 were as follows (in thousands):

Thirteen weeks ended November 27, 2021

The changes in each component of accumulated other comprehensive loss, net of tax, for the thirteen and twenty-six weeks ended February 26, 2022 and February 27, 2021 were as follows (in thousands):

Thirteen weeks ended February 26, 2022

Instruments (1)

Comprehensive

Balance as of November 27, 2021

Other comprehensive income (loss) before reclassification

Amounts reclassified from accumulated other

comprehensive loss

Net current period other comprehensive (loss) income

Balance as of February 26, 2022

Twenty-six weeks ended February 26, 2022

Instruments (1)

Comprehensive

Balance as of August 28, 2021

3 unchanged sentences

Net current period other comprehensive (loss) income

Balance as of February 26, 2022

Thirteen weeks ended February 27, 2021

Instruments (1)

Comprehensive

Balance as of November 28, 2020

Thirteen weeks ended November 28, 2020

Other comprehensive (loss) income before reclassification

Amounts reclassified from accumulated other

comprehensive loss

Net current period other comprehensive (loss) income

Balance as of February 27, 2021

Twenty-six weeks ended February 27, 2021

Instruments (1)

5 unchanged sentences

Net current period other comprehensive (loss) income

Balance as of November 28, 2020

Balance as of February 27, 2021

Amounts are shown net of tax

Amounts reclassified from accumulated other comprehensive loss, net of tax, for the thirteen weeks ended November 27, 2021 and November 28, 2020 were as follows (in thousands):

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

Amounts reclassified from accumulated other comprehensive loss, net of tax, for the thirteen and twenty-six weeks ended February 26, 2022 and February 27, 2021 were as follows (in thousands):

Thirteen weeks ended

November 27, 2021

November 28, 2020

Twenty-six weeks ended

February 26, 2022

February 27, 2021

February 26, 2022

February 27, 2021

Derivative financial instruments, net:

3 unchanged sentences

Amounts included in selling and administrative expenses in the consolidated statements of income.

Amounts included in revenues in the consolidated statements of income.

Amounts included in revenues in the accompanying consolidated statements of income.

Segment Reporting

3 unchanged sentences

Rental and Cleaning, Canadian Rental and Cleaning, Manufacturing (“MFG”), Corporate, Specialty Garments and First Aid.

Rental and Cleaning and Canadian Rental

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

and Cleaning operating segments have been combined to form the U.S.

Rental and Cleaning and Canadian Rental and Cleaning operating segments have been combined to form the U.S.

and Canadian Rental and Cleaning reporting segment, and as a result, the Company has five reporting segments.

20 unchanged sentences

and Canadian Rental and Cleaning segment, with the remainder of the costs relating to the Specialty Garment and First Aid segments.

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

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.

3 unchanged sentences

Thirteen weeks ended

November 27, 2021

February 26, 2022

Operating income (loss)

Interest (income) expense, net

Interest income, net

Income (loss) before taxes

November 28, 2020

February 27, 2021

Operating income (loss)

Interest (income) expense, net

Interest income, net

Income (loss) before taxes

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

Twenty-six weeks ended

February 26, 2022

Operating income (loss)

Interest income, net

Income (loss) before taxes

February 27, 2021

Operating income (loss)

Interest income, net

Income (loss) before taxes

Shares Repurchased and Dividends

On October 20, 2021, the Company announced that it would be raising its quarterly dividend to $ 0.30 per share for Common Stock and to $ 0.24 per share for Class B Common Stock, up from $ 0.25 and $ 0.20 per share, respectively .

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

On October 20, 2021, the Company announced that it would be raising its quarterly dividend to $ 0.30 per share of Common Stock and to $ 0.24 per share of Class B Common Stock, up from $ 0.25 and $ 0.20 per share, respectively.

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

On January 2, 2019, the Company’s Board of Directors approved a share repurchase program (the “2019 Share Repurchase Program”) authorizing the Company to repurchase from time to time up to $ 100.0 million of its outstanding shares of Common Stock.

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.

During the thirteen weeks ended November 27, 2021, the Company repurchased 22,750 shares for an average price per share of $ 209.73 under the Share Repurchase Programs.

During the thirteen weeks ended November 28, 2020, the Company repurchased 41,000 shares for an average price per share of $ 176.01 under the 2019 Share Repurchase Program.

As of November 27, 2021, the Company had $ 97.3 million remaining to repurchase under the 2021 Share Repurchase Program.

During the thirteen and twenty-six weeks ended February 26, 2022, the Company repurchased 52,500 and 75,250 shares for an average price per share of $ 190.37 and $ 167.54 , respectively.

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.

As of February 26, 2022, the Company had $ 87.3 million remaining to repurchase under the 2021 Share Repurchase Program.

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