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Revenue Recognition | 6 Months Ended
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Mar. 01, 2025
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | 3. Revenue Recognition The following table presents the Company’s revenues for the thirteen and twenty-six weeks ended March 1, 2025 and February 24, 2024, respectively, disaggregated by service type:
|  | Thirteen Weeks Ended |  |  | Twenty-Six Weeks Ended |
|  | March 1, 2025 |  |  | February 24, 2024 |  |  | March 1, 2025 |  |  | February 24, 2024 |
(In thousands, except percentages) |  | Revenues |  |  | % of Revenues |  |  | Revenues |  |  | % of Revenues |  |  | Revenues |  |  | % of Revenues |  |  | Revenues |  |  | % of Revenues |
Core Laundry Operations |  | $ | 530,351 |  |  |  | 88.0 | % |  | $ | 522,420 |  |  |  | 88.4 | % |  | $ | 1,063,094 |  |  |  | 88.1 | % |  | $ | 1,046,409 |  |  |  | 88.4 | %
Specialty Garments |  |  | 44,414 |  |  |  | 7.4 | % |  |  | 43,462 |  |  |  | 7.4 | % |  |  | 90,357 |  |  |  | 7.5 | % |  |  | 88,131 |  |  |  | 7.4 | %
First Aid |  |  | 27,454 |  |  |  | 4.6 | % |  |  | 24,829 |  |  |  | 4.2 | % |  |  | 53,676 |  |  |  | 4.4 | % |  |  | 49,696 |  |  |  | 4.2 | %
Total revenues |  | $ | 602,219 |  |  |  | 100.0 | % |  | $ | 590,711 |  |  |  | 100.0 | % |  | $ | 1,207,127 |  |  |  | 100.0 | % |  | $ | 1,184,236 |  |  |  | 100.0 | %
See Note 16, “Segment Reporting” for additional details of segment definitions. Revenue Recognition Policy During the thirteen weeks ended March 1, 2025 and February 24, 2024, approximately 83.4% and 84.0%, respectively, of the Company’s revenues were derived from fees for route servicing of the Core Laundry Operations, Specialty Garments, and First Aid segments performed by the Company’s employees at each customer’s location of business. During the twenty-six weeks ended March 1, 2025 and February 24, 2024, approximately 83.8% and 84.2%, respectively, of the Company’s revenues were derived from fees for route servicing of the Core Laundry Operations, Specialty Garments, and First Aid segments performed by the Company’s employees at each customer’s location of business. Revenues from the Company’s route servicing customer contracts represent a single performance obligation. The Company recognizes these revenues over time as services are performed based on the nature of services provided and contractual rates (input method). Certain of the Company’s customer contracts, primarily within the Company’s Core Laundry Operations, include pricing terms and conditions that include components of variable consideration. The variable consideration is typically in the form of consideration due to customer-based performance metrics specified within the contract. Specifically, some contracts contain discounts or rebates that the customer can earn through the achievement of specified volume levels. Each component of variable consideration is earned based on the Company’s actual performance during the measurement period specified within the contract. To determine the transaction price, the Company estimates the variable consideration using the most likely amount method, based on the specific contract provisions and known performance results during the relevant measurement period. When determining if variable consideration should be constrained, the Company considers whether factors outside its control could result in a significant reversal of revenue. In making these assessments, the Company considers the likelihood and magnitude of a potential reversal. The Company’s performance period generally corresponds with the monthly invoice period. No significant constraints on the Company’s revenue recognition were applied during the thirteen and twenty-six weeks ended March 1, 2025 and February 24, 2024. 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. The Company is exposed to credit losses primarily through its accounts receivables. Accounts receivable represents amounts due from customers and is presented net of reserves for expected credit losses. The Company utilizes its judgment and estimates are used in determining the collectability of accounts receivable and evaluating the adequacy of the reserve for expected credit losses. The Company considers specific accounts receivable and historical credit loss experience, customer credit worthiness, current economic trends and the age of outstanding balances as part of its evaluation. When an account is considered uncollectible, it is written off against the reserve for expected credit losses. The following table presents the change in the allowance for credit losses, which is included in Receivables, net of reserves on the Consolidated Balance Sheets for the twenty-six weeks ended March 1, 2025 (in thousands):
Balance as of August 31, 2024 |  | $ | 7,916 |
Current period provision |  |  | 3,838 |
Write-offs and other |  |  | (3,754 | )
Balance as of March 1, 2025 |  | $ | 8,000 |
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 non-current 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. The following table presents deferred commissions on the Company's Consolidated Balance Sheets as of March 1, 2025 and August 31, 2024:
(in thousands) |  | March 1, 2025 |  |  | August 31, 2024 |
Prepaid expenses and other current assets |  | $ | 18,802 |  |  | $ | 18,079 |
Other assets |  |  | 81,980 |  |  |  | 78,856 |
The following table presents the Company's amortization expense related to deferred commissions on the Consolidated Statements of Income for the thirteen and twenty-six weeks ended March 1, 2025 and February 24, 2024, respectively:
|  | Thirteen Weeks Ended |  |  | Twenty-Six Weeks Ended |
(in thousands) |  | March 1, 2025 |  |  | February 24, 2024 |  |  | March 1, 2025 |  |  | February 24, 2024 |
Selling and administrative expenses |  | $ | 4,855 |  |  | $ | 4,443 |  |  | $ | 9,628 |  |  | $ | 8,788 |

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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/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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