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Revenue Recognition | 3 Months Ended
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Nov. 24, 2018
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition The following table presents the Company’s revenues for the thirteen weeks ended November 24, 2018 and November 25, 2017, respectively, disaggregated by service type:
|  | Thirteen weeks ended
|  | November 24, 2018 |  | November 25, 2017
(In thousands, except percentages) |  | Revenues |  | % of Revenues |  | Revenues |  | % of Revenues
Core Laundry Operations |  | $ | 390,477 |  |  | 89.0 | % |  | $ | 373,796 |  |  | 89.9 | %
Specialty Garments |  | 34,448 |  |  | 7.9 | % |  | 28,427 |  |  | 6.8 | %
First Aid |  | 13,625 |  |  | 3.1 | % |  | 13,555 |  |  | 3.3 | %
Total Revenues |  | $ | 438,550 |  |  | 100.0 | % |  | $ | 415,778 |  |  | 100.0 | %
For the thirteen weeks ended November 24, 2018, the percentage of revenue recognized over time as the services are performed was 95.3% of Core Laundry Operations revenues and 83.9%of Specialty Garments revenues. See Note 16 “Segment Reporting” for additional details of segment definitions. During that same period, 4.7% of Core Laundry Operations revenues, 16.1% of Specialty Garments revenues and 100% of First Aid revenues were recognized at a point in time, which generally occurs when the goods are transferred to the customer. Revenue Recognition Policy Approximately 91.0% of the Company's revenues are derived from fees for route servicing of Core Laundry Operations, Specialty Garments, and First Aid performed by the Company’s employees at the customer's location of business. Revenues from the Company's route servicing customer contracts represent a single-performance obligation. The Company recognizes these revenues over time as services are performed based on the nature of services provided and contractual rates (input method). Certain of the Company's customer contracts, primarily within the Company's Core Laundry Operations, include pricing terms and conditions that include components of variable consideration. The variable consideration is typically in the form of consideration due to a customer based on performance metrics specified within the contract. Specifically, some contracts contain discounts or rebates that the customer can earn through the achievement of specified volume levels. Each component of variable consideration is earned based on the Company's actual performance during the measurement period specified within the contract. To determine the transaction price, the Company estimates the variable consideration using the most likely amount method, based on the specific contract provisions and known performance results during the relevant measurement period. When determining if variable consideration should be constrained, the Company considers whether factors outside its control could result in a significant reversal of revenue. In making these assessments, the Company considers the likelihood and magnitude of a potential reversal. The Company's performance period generally corresponds with the monthly invoice period. No significant constraints on the Company's revenue recognition were applied during the thirteen weeks ended November 24, 2018. The Company reassesses these estimates during each reporting period. The Company maintains a liability for these discounts and rebates within accrued liabilities on the consolidated balance sheets. Variable consideration also includes consideration paid to a customer at the beginning of a contract. The Company capitalizes this consideration and amortizes it over the life of the contract as a reduction to revenue in accordance with the updated accounting guidance for revenue recognition. These assets are included in other assets on the consolidated balance sheets. Costs to Obtain a Contract The Company defers commission expenses paid to its employee-partners when the commissions are deemed to be incremental for obtaining the route servicing customer contract. The deferred commissions are amortized on a straight-line basis over the expected period of benefit. The Company reviews the deferred commission balances for impairment on an ongoing basis. Deferred commissions are classified as current or noncurrent based on the timing of when the Company expects to recognize the expense. The current portion is included in prepaid expenses and other current assets and the non-current portion is included in other assets on the Company's consolidated balance sheets. As of November 24, 2018, the current and non-current assets related to deferred commissions totaled $10.8 million and $43.3 million, respectively. During the thirteen weeks ended November 24, 2018, the Company recorded $2.8 million of amortization expense related to deferred commissions. This expense is classified in selling and administrative expense on the consolidated statements of income.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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