10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended November 24, 2012
	OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ________________ to ________________

Commission file number:  001-08504

UNIFIRST CORPORATION

(Exact name of Registrant as Specified in Its Charter)

Massachusetts	04-2103460
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)
68 Jonspin Road, Wilmington, MA	01887
(Address of Principal Executive Offices)	(Zip Code)

 (978) 658-8888

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  ü      No  

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).       

Yes  ü      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ü       Accelerated filer         Smaller Reporting Company         Non-accelerated filer  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes        No  ü

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

The number of outstanding shares of UniFirst Corporation Common Stock and Class B Common Stock at December 27, 2012 were 15,093,069 and 4,885,277, respectively.

UniFirst Corporation

Quarterly Report on Form 10-Q

For the Quarter ended November 24, 2012

Table of Contents

Consolidated Statements of Income for the Thirteen Weeks ended November 24, 2012 and November 26, 2011

Consolidated Statements of Comprehensive Income for the Thirteen Weeks ended November 24, 2012 and November 26, 2011

Consolidated Balance Sheets as of November 24, 2012 and August 25, 2012

Consolidated Statements of Cash Flows for the Thirteen Weeks ended November 24, 2012 and November 26, 2011

Item 1 – Legal Proceedings

Item 1A – Risk Factors

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds

Item 3 – Defaults Upon Senior Securities

Item 4 – Mine Safety Disclosures

Item 5 – Other Information

Exhibit Index

Certifications

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

UniFirst Corporation and Subsidiaries

Consolidated Statements of Income

(Unaudited)

Thirteen weeks ended (In thousands, except per share data)	November 24, 2012			November 26, 2011
Revenues	$	332,569		$	313,025
Operating expenses:
Cost of revenues (1)		201,551			195,139
Selling and administrative expenses (1)		64,288			59,124
Depreciation and amortization		16,771			16,408
Total operating expenses		282,610			270,671
Income from operations		49,959			42,354
Other (income) expense:
Interest expense		460			573
Interest income		(767	)		(631	)
Foreign exchange (gain) loss		(160	)		627
Total other (income) expense		(467	)		569
Income before income taxes		50,426			41,785
Provision for income taxes		19,666			15,983
Net income	$	30,760		$	25,802
Income per  share – Basic:
Common Stock	$	1.62		$	1.37
Class B Common Stock	$	1.30		$	1.09
Income per  share – Diluted:
CommonStock	$	1.54		$	1.30
Income allocated to – Basic:
Common Stock	$	24,191		$	20,258
Class B Common Stock	$	6,025		$	5,068
Income allocated to – Diluted:
Common Stock	$	30,244		$	25,350
Weighted average number of shares outstanding – Basic:
Common Stock		14,925			14,838
Class B Common Stock		4,647			4,641
Weighted average number of shares outstanding – Diluted:
Common Stock		19,693			19,557
Dividends per share:
Common Stock	$	0.0375		$	0.0375
Class B Common Stock	$	0.0300		$	0.0300

(1)  Exclusive of depreciation on the Company’s property, plant and equipment and amortization on its intangible assets.

The accompanying notes are an integral part of these

Consolidated Financial Statements.

UniFirst Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

(Unaudited)

Thirteen weeks ended (In thousands)	November 24, 2012		November 26, 2011
Net Income	$	30,760	$	25,802
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		325		(7,398	)
Pension benefit liabilities, net (1)		50		—
Other comprehensive income (loss)		375		(7,398	)
Comprehensive income	$	31,135	$	18,404

(1) Net of less than $0.1 million of tax expense for the thirteen weeks ended November 24, 2012.

UniFirst Corporation and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(In thousands, except share data)	November 24, 2012		August 25, 2012(a)
Assets
Current Assets:
Cash and cash equivalents	$	152,664	$	120,123
Receivables, less reserves of $7,318 and $5,152, respectively		153,899		135,327
Inventories		75,309		75,420
Rental merchandise in service		136,219		138,284
Prepaid and deferred income taxes		12,721		12,785
Prepaid expenses		8,611		5,741
Total current assets		539,423		487,680
Property, plant and equipment:
Land, buildings and leasehold improvements		365,575		355,568
Machinery and equipment		437,614		425,274
Motor vehicles		141,978		141,370
Total property, plant and equipment		945,167		922,212
Less -- accumulated depreciation		522,094		510,008
Total property, plant and equipment, net		423,073		412,204
Goodwill		288,158		288,137
Customer contracts, net		46,249		48,580
Other intangible assets, net		1,757		1,951
Other assets		2,596		1,982
Total assets	$	1,301,256	$	1,240,534
Liabilities and shareholders' equity
Current liabilities:
Loans payable and current maturities of long-term debt	$	108,847	$	6,831
Accounts payable		63,545		52,340
Accrued liabilities		80,125		78,174
Accrued income taxes		20,142		8,180
Total current liabilities		272,659		145,525
Long-term liabilities:
Long-term debt, net of current maturities		155		100,155
Accrued liabilities		44,091		43,420
Accrued and deferred income taxes		54,543		54,509
Total long-term liabilities		98,789		198,084
Commitments and contingencies (Note 8)
Shareholders' equity:
Preferred stock, $1.00 par value; 2,000,000 shares authorized; no shares issued and outstanding		—		—
Common Stock, $0.10 par value; 30,000,000 shares authorized; 15,084,869 and 15,064,069 issued and outstanding, respectively		1,508		1,506
Class B Common Stock, $0.10 par value; 20,000,000 shares authorized; 4,885,277 and 4,885,277 issued and outstanding, respectively		488		488
Capital surplus		45,443		42,984
Retained earnings		874,723		844,676
Accumulated other comprehensive income		7,646		7,271
Total shareholders' equity		929,808		896,925
Total liabilities and shareholders’ equity	$	1,301,256	$	1,240,534

(a) Derived from audited financial statements

The accompanying notes are an integral part of these

Consolidated Financial Statements.

UniFirst Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

Thirteen weeks ended (In thousands)	November 24, 2012			November 26, 2011
Cash flows from operating activities:
Net income	$	30,760		$	25,802
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation		14,305			13,727
Amortization of intangible assets		2,466			2,681
Amortization of deferred financing costs		59			59
Share-based compensation		1,705			1,668
Accretion on environmental contingencies		136			158
Accretion on asset retirement obligations		166			158
Deferred income taxes		(18	)		51
Changes in assets and liabilities, net of acquisitions:
Receivables		(18,457	)		(16,100	)
Inventories		221			2,332
Rental merchandise in service		2,102			(7,505	)
Prepaid expenses		(2,867	)		(3,137	)
Accounts payable		11,183			3,529
Accrued liabilities		2,373			623
Prepaid and accrued income taxes		12,033			6,608
Net cash provided by operating activities		56,167			30,654
Cash flows from investing activities:
Capital expenditures		(25,103	)		(13,966	)
Other		(318	)		(118	)
Net cash used in investing activities		(25,421	)		(14,084	)
Cash flows from financing activities:
Proceeds from long-term obligations		—			7,000
Payments on long-term obligations		—			(15,371	)
Proceeds from exercise of Common Stock options		757			248
Payment of cash dividends		(713	)		(709	)
Other		1,954			—
Net cash provided by (used in) financing activities		1,998			(8,832	)
Effect of exchange rate changes		(203	)		(2,427	)
Net increase in cash and cash equivalents		32,541			5,311
Cash and cash equivalents at beginning of period		120,123			48,812
Cash and cash equivalents at end of period	$	152,664		$	54,123

The accompanying notes are an integral part of these

Consolidated Financial Statements.

UniFirst Corporation and Subsidiaries

Notes to Consolidated Financial Statements

1. Basis of Presentation

These Consolidated Financial Statements of UniFirst Corporation (the “Company”) have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) have been condensed or omitted pursuant to such rules and regulations; however, the Company believes that the information furnished reflects all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim period.

It is suggested that these Consolidated Financial Statements be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 25, 2012. There have been no material changes in the accounting policies followed by the Company during the current fiscal year. Results for an interim period are not indicative of any future interim periods or for an entire fiscal year.

Certain prior year amounts have been reclassified to conform to current year presentation.  These reclassifications did not impact current or historical net income or shareholder’s equity.

2. Recent Accounting Pronouncements

In May 2011, the FASB issued updated accounting guidance to amend existing requirements for fair value measurements and disclosures.  The guidance expands the disclosure requirements around fair value measurements categorized in Level 3 of the fair value hierarchy and requires disclosure of the level in the fair value hierarchy of items that are not measured at fair value but whose fair value must be disclosed.  It also clarifies and expands upon existing requirements for fair value measurements of financial assets and liabilities as well as instruments classified in shareholders’ equity.  The guidance is effective for interim and annual financial periods beginning after December 15, 2011.  The Company adopted this revised guidance on August 26, 2012 and the adoption did not have a material impact on its financial statements.

In June 2011, the FASB issued updated accounting guidance that improves the comparability, consistency, and transparency of financial reporting and increases the prominence of items reported in other comprehensive income by eliminating the option to present components of other comprehensive income as part of the statement of changes in shareholders’ equity.  The amendments to the existing standard require that all nonowner changes in shareholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  The amendments to the existing standard do not change the current option for presenting components of OCI gross or net of the effect of income taxes, provided that such tax effects are presented in the statement in which OCI is presented or disclosed in the notes to the financial statements.  Additionally, the standard does not affect the calculation or reporting of earnings per share.  This guidance is effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2011 and is to be applied retrospectively, with early adoption permitted.  The Company adopted this revised guidance on August 26, 2012 and the adoption did not have a material impact on its financial statements.

In September 2011, the FASB issued updated guidance intended to simplify how entities, both public and nonpublic, test for goodwill impairment.  This guidance permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test.  Also, the guidance improves the examples of events and circumstances that an entity having a reporting unit with a zero or negative carrying amount should consider in determining whether to measure an impairment loss, if any, under the second step of the goodwill impairment test.  This guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted.  The Company adopted this revised guidance on August 26, 2012 and the adoption did not have a material impact on its financial statements.

3. Acquisitions

During the thirteen weeks ended November 24, 2012, the Company acquired no businesses. Whenever the Company acquires a business, consistent with current accounting guidance, the results of operations of the acquisition are included in the Company’s consolidated financial results from the date of the acquisition.

4. Fair Value Measurements

US GAAP establishes a framework for measuring fair value and establishes disclosure requirements about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The fair value hierarchy prescribed under US GAAP contains three levels as follows:

  Level 1 –   Quoted prices in active markets for identical assets or liabilities.

  Level 2 –   Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

  Level 3 –   Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

All financial assets or liabilities that are measured at fair value on a recurring basis (at least annually) have been segregated into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date.  The assets or liabilities measured at fair value on a recurring basis are summarized in the table below (in thousands):

	As of November 24, 2012
	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents	$	35,106	$	—	$	—	$	35,106
Total	$	35,106	$	—	$	—	$	35,106

The Company’s cash equivalents listed above represent money market securities and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The Company does not adjust the quoted market price for such financial instruments.

5. Employee Benefit Plans

Defined Contribution Retirement Savings Plan

The Company has a defined contribution retirement savings plan with a 401(k) feature for all eligible employees not under collective bargaining agreements. The Company matches a portion of the employee’s contribution and can make an additional contribution at its discretion. Contributions charged to expense under the plan for the thirteen weeks ended November 24, 2012 and November 26, 2011 were $4.3 million and $2.8 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, a non-contributory defined benefit pension plan covering union employees at one of its locations, and a frozen pension plan the Company assumed in connection with its acquisition of Textilease Corporation in fiscal 2004. The amounts charged to expense related to these plans for both the thirteen weeks ended November 24, 2012 and November 26, 2011 were $0.6 million and $0.5 million, respectively.

6. Net Income Per Share

The Company calculates net income per share in accordance with US GAAP, which requires the Company to allocate income to its unvested participating securities as part of its earnings per share (“EPS”) calculations.  The following table sets forth the computation of basic earnings 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):

	Thirteen weeks ended
	November 24,		November 26,
	2012		2011
Net income available to shareholders	$	30,760	$	25,802
Allocation of net income for Basic:
Common Stock	$	24,191	$	20,258
Class B Common Stock		6,025		5,068
Unvested participating shares		544		476
	$	30,760	$	25,802
Weighted average number of shares for Basic:
Common Stock		14,925		14,838
Class B Common Stock		4,647		4,641
Unvested participating shares		383		398
		19,955		19,877
Earnings per share for Basic:
Common Stock	$	1.62	$	1.37
Class B Common Stock	$	1.30	$	1.09

For diluted EPS, the Company is required to calculate diluted EPS for Common Stock using the more dilutive of the following two methods:

• The treasury stock method; or

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

For the thirteen weeks ended November 24, 2012 and November 26, 2011, the Company’s diluted EPS assumes the conversion of the Class B Common Stock into Common Stock and uses the two-class method for its unvested participating shares as follows (in thousands, except per share data):

	Thirteen weeks ended November 24, 2012							Thirteen weeks ended November 26, 2011
	Earnings							Earnings
	to Common			Common				to Common			Common
	shareholders			Shares		EPS		shareholders			Shares		EPS
As reported - Basic	$	24,191			14,925	$	1.62	$	20,258			14,838	$	1.37
Add: effect of dilutive potential common shares
Share-Based Awards		—			121				—			78
Class B Common Stock		6,025			4,647				5,068			4,641
Add: Undistributed earnings allocated to unvested participating shares		531			—				463			—
Less: Undistributed earnings reallocated to unvested participating shares		(503	)		—				(439	)		—
Diluted EPS – Common Stock		30,244			19,693	$	1.54		25,350			19,557	$	1.30

There were no share-based awards that were excluded from the calculation of diluted earnings per share for the thirteen weeks ended November 24, 2012 because they were anti-dilutive.  Share-based awards that would result in the issuance 18,014 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended November 26, 2011 because they were anti-dilutive.

7. Asset Retirement Obligations

The Company recognizes asset retirement obligations in the period in which they are incurred if a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. 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 thirty-two years.

A reconciliation of the Company’s asset retirement liability is as follows (in thousands):

	November 24, 2012
Beginning balance as of August 25, 2012	$	10,120
Accretion expense		166
Ending balance as of November 24, 2012	$	10,286

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

8. Commitments and Contingencies

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 waste and other substances. In particular, industrial laundries use and must dispose of detergent waste water 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. In the past, the Company has settled, or contributed to the settlement of, actions or claims brought against the Company relating to the disposal of hazardous materials and there can be no assurance that the Company will not have to expend material amounts to remediate the consequences of any such disposal in the future.

US 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. Significant judgment is required to determine the existence of a liability, as well as the amount to be recorded. The Company regularly consults with attorneys and outside consultants in its consideration of the relevant facts and circumstances before recording a contingent liability. Changes in enacted laws, regulatory orders or decrees, management’s estimates of costs, insurance proceeds, participation by other parties, the timing of payments and the input of outside consultants and attorneys based on changing legal or factual circumstances could have a material impact on the amounts recorded for environmental and other contingent liabilities.

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. 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. 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 the Company under such laws or expose the Company to third-party actions such as tort suits. The Company continues to address environmental conditions under terms of consent orders negotiated with the applicable environmental authorities or otherwise with respect to sites located in or related to Woburn, Massachusetts, Somerville, Massachusetts, Springfield, Massachusetts, Uvalde, Texas, Stockton, California, three sites related to former operations in Williamstown, Vermont, as well as sites located in Goldsboro, North Carolina, Wilmington, North Carolina and Landover, Maryland.

The Company has accrued certain costs related to the sites described above as it has been determined that the costs are probable and can be reasonably estimated. The Company continues to implement mitigation measures and to monitor environmental conditions at the Somerville, Massachusetts site. The Company also has potential exposure related to an additional parcel of land (the "Central Area") related to the Woburn, Massachusetts site discussed above. Currently, the consent decree for the Woburn site does not define or require any remediation work in the Central Area. 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 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.  The Company has accrued costs to perform certain work responsive to EPA's comments.  In addition, the Company has responded to requests from the EPA under the Clean Air Act for information regarding its handling of and operations with respect to the laundering of soiled towels.

The Company routinely reviews and evaluates sites that may require remediation and monitoring and determines its estimated costs based on various estimates and assumptions. These estimates are developed using its internal sources or by third party environmental engineers or other service providers. Internally developed estimates are based on:

• Management’s judgment and experience in remediating and monitoring the Company’s sites;

• Information available from regulatory agencies as to costs of remediation and monitoring;

• 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; and

• The typical allocation of costs among PRPs.

There is usually a range of reasonable estimates of the costs associated with each site. The Company’s accruals reflect the amount within the range that constitutes its best estimate. 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 24, 2012, the risk-free interest rates utilized by the Company ranged from 1.7% to 2.8%.

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 Consolidated Statements of Income.  The changes to the Company’s environmental liabilities for the thirteen weeks ended November 24, 2012 are as follows (in thousands):

	November 24, 2012
Beginning balance as of August 25, 2012	$	20,020
Costs incurred for which reserves have been provided		(247	)
Insurance proceeds received		33
Interest accretion		136
Changes in discount rates		(72	)
Balance as of November 24, 2012	$	19,870

Anticipated payments and insurance proceeds of currently identified environmental remediation liabilities as of November 24, 2012, for the next five fiscal years and thereafter, as measured in current dollars, are reflected below (in thousands).

(In thousands)	2013			2014			2015			2016			2017			Thereafter			Total
Estimated costs – current dollars	$	5,012		$	2,470		$	1,437		$	950		$	752		$	11,860		$	22,481
Estimated insurance proceeds		(126	)		(173	)		(159	)		(173	)		(159	)		(1,743	)		(2,533	)
Net anticipated costs	$	4,886		$	2,297		$	1,278		$	777		$	593		$	10,117		$	19,948
Effect of inflation																				6,839
Effect of discounting																				(6,917	)
Balance as of November 24, 2012																			$	19,870

Estimated insurance proceeds are primarily received from an annuity received as part of a legal settlement with an insurance company. Annual proceeds of approximately $0.3 million are deposited into an escrow account which funds remediation and monitoring costs for three sites related to former operations in Williamstown, Vermont. 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 24, 2012, 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 $3.2 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 the Nuclear Regulatory Commission (“NRC”), or, in certain cases, by the applicable state agency, and are subject to regulation by federal, state and local 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 litigation related to charges for certain ancillary services on invoices, personal injury claims, customer contract matters, employment claims and environmental matters as described above.  While it is impossible 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 accounting principles generally accepted in the United States.  It is possible, however, that future financial position or results of operations for any particular 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.

In addition, on December 31, 2012, the Company received a letter from counsel for New England Compounding Center (“NECC”) demanding, among other things, that the Company indemnify NECC regarding claims made against NECC, including those related to NECC’s highly-publicized compounding and sale of tainted methylprednisolone acetate.  This demand relates to the limited, once-a-month cleaning services the Company provided to portions of NECC’s cleanroom facilities.  Based on its preliminary review of this matter, the Company believes that NECC’s claims are without merit.  The Company has notified its insurer of this claim.  Based on the information currently available, the Company is unable to reasonably assess the ultimate outcome of this matter or an estimate or range of estimates of any potential losses.

9. Income Taxes

The Company’s effective income tax rate was 39.0% for the thirteen weeks ended November 24, 2012, as compared to 38.3% for the thirteen weeks ended November 26, 2011.  The Company’s tax rate in the first quarter of fiscal 2013 is higher than in the first quarter of fiscal 2012 primarily due to $0.4 million of tax expense that the Company recognized related to non-deductible compensation that was recorded in the first quarter of fiscal 2013. 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 24, 2012, there were no material changes in the amount of unrecognized tax benefits or the amount accrued for interest and penalties.

U.S. and Canadian federal income tax statutes have lapsed for filings up to and including fiscal years 2008 and 2005, respectively, and we are currently under audit for U.S. federal income taxes for 2010 and 2011. With a few exceptions, the Company is no longer subject to state and local income tax examinations for periods prior to fiscal 2007.  The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change significantly in the next 12 months.

10. Long-term Debt

On May 5, 2011, the Company entered into a $250.0 million unsecured revolving credit agreement (the “Credit Agreement”) with a syndicate of banks, which matures on May 4, 2016.  Under the 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 Credit Agreement.  The Company tests its compliance with these financial covenants on a fiscal quarterly basis. At November 24, 2012, the interest rates applicable to the Company’s borrowings under the Credit Agreement would be calculated as LIBOR plus 100 basis points at the time of the respective borrowing.  As of November 24, 2012, the Company had no outstanding borrowings, letters of credit amounting to $43.7 million and $206.3 million available for borrowing under the Credit Agreement.

On September 14, 2006, the Company issued $100.0 million of floating rates notes (“Floating Rate Notes”) pursuant to a Note Purchase Agreement (“2006 Note Agreement”).  The Floating Rate Notes mature on September 14, 2013, bear interest at LIBOR plus 50 basis points and may be repaid at face value two years from the date of issuance.

As of November 24, 2012, the Company was in compliance with all covenants under the Credit Agreement and the 2006 Note Agreement.

11. Segment Reporting

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. The Company’s chief operating decision maker is the Company’s chief executive officer. The Company has six operating segments based on the information reviewed by its chief executive officer: US Rental and Cleaning, Canadian Rental and Cleaning, Manufacturing (“MFG”), Corporate, Specialty Garments Rental and Cleaning (“Specialty Garments”) and First Aid. The US Rental and Cleaning and Canadian Rental and Cleaning operating segments have been combined to form the US and Canadian Rental and Cleaning reporting segment, and as a result, the Company has five reporting segments.

The US and Canadian Rental and Cleaning reporting segment purchases, rents, cleans, delivers and sells, uniforms and protective clothing and non-garment items in the United States and Canada.  The laundry locations of the US and Canadian Rental and Cleaning reporting segment are referred to by the Company as “industrial laundries” or “industrial laundry locations.”

The MFG operating segment designs and manufactures uniforms and non-garment items solely for the purpose of providing these goods to the US and Canadian Rental and Cleaning reporting segment. MFG revenues are generated when goods are shipped from the Company’s manufacturing facilities, or its subcontract manufacturers, to other Company locations. These revenues are recorded at a transfer price which is typically in excess of the actual manufacturing cost. Products are carried in inventory and subsequently placed in service and amortized at this transfer price. 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.  Income before income taxes from MFG net of the intercompany MFG elimination offsets the merchandise amortization costs incurred by the US 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.

The Corporate operating segment consists of costs associated with the Company’s distribution center, sales and marketing, information systems, engineering, materials management, manufacturing planning, finance, budgeting, human resources, other general and administrative costs and interest expense. The revenues generated from the Corporate operating segment represent certain direct sales made by the Company directly from its distribution center. The products sold by this operating segment are the same products rented and sold by the US and Canadian Rental and Cleaning reporting segment. 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. 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. The assets that give rise to this depreciation and amortization are included in the total assets of the US and Canadian Rental and Cleaning reporting segment as this is how they are tracked and reviewed by the Company.  The majority of expenses accounted for within the Corporate segment relate to costs of the US and Canadian Rental and Cleaning segment, with the remainder of the costs relating to the Specialty Garment and First

Aid segments.

The Specialty Garments operating segment purchases, rents, cleans, delivers and sells, specialty garments and non-garment items primarily for nuclear and cleanroom applications. The First Aid operating segment sells first aid cabinet services and other safety supplies as well as maintains wholesale distribution and pill packaging operations.

The Company refers to the US 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):

	US and
	Canadian											Subtotal
	Rental and					Net Interco						Core Laundry			Specialty
Thirteen weeks ended	Cleaning			MFG		MFG Elim			Corporate			Operations			Garments		First Aid		Total
November 24, 2012
Revenues	$	291,283		$	42,595	$	(42,595	)	$	3,277		$	294,560		$	27,884	$	10,125	$	332,569
Income (loss) from operations	$	51,271		$	15,322	$	(2,966	)	$	(19,099	)	$	44,528		$	4,704	$	727	$	49,959
Interest (income)  expense, net	$	(694	)	$	—	$	—		$	387		$	(307	)	$	—	$	—	$	(307	)
Income (loss) before taxes	$	51,965		$	15,247	$	(2,966	)	$	(19,498	)	$	44,748		$	4,951	$	727	$	50,426

November 26, 2011
Revenues	$	269,210		$	41,386	$	(41,386	)	$	3,063		$	272,273	$	30,268	$	10,484	$	313,025
Income (loss) from operations	$	43,731		$	11,482	$	(32	)	$	(20,199	)	$	34,982	$	6,566	$	806	$	42,354
Interest (income) expense, net	$	(579	)	$	—	$	—		$	521		$	(58)	$	—	$	—	$	(58	)
Income (loss) before taxes	$	44,319		$	11,603	$	(32	)	$	(20,702	)	$	35,188	$	5,791	$	806	$	41,785

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

SAFE HARBOR FOR FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q and any documents incorporated by reference contain forward looking statements within the meaning of the federal securities laws.  Forward looking statements contained in this Quarterly Report on Form 10-Q and any documents incorporated by reference are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995.  Forward looking statements may be identified by words such as “estimates,” “anticipates,” “projects,” “plans,” “expects,” “intends,” “believes,” “seeks,” “could,” “should,” “may,” “will,” or the negative versions thereof, and similar expressions and by the context in which they are used.  Such forward looking statements are based upon our current expectations and speak only as of the date made.  Such statements are highly dependent upon a variety of risks, uncertainties and other important factors that could cause actual results to differ materially from those reflected in such forward looking statements.  Such factors include, but are not limited to, uncertainties caused by the continuing adverse worldwide economic conditions, uncertainties regarding our ability to consummate and successfully integrate acquired businesses, uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation, our ability to compete successfully without any significant degradation in our margin rates, seasonal fluctuations in business levels, our ability to preserve positive labor relationships and avoid becoming the target of corporate labor unionization campaigns that could disrupt our business, the effect of currency fluctuations on our results of operations and financial condition, our dependence on third parties to supply us with raw materials, any loss of key management or other personnel, increased costs as a result of any future changes in federal or state laws, rules and regulations or governmental interpretation of such laws, rules and regulations, uncertainties regarding the price levels of natural gas, electricity, fuel and labor, the impact of adverse economic conditions and the current tight credit markets on our customers and such customers’ workforces, the level and duration of workforce reductions by our customers, the continuing increase in domestic healthcare costs, demand and prices for our products and services, rampant criminal activity and instability in Mexico where our principal garment manufacturing plants are located, our ability to properly and efficiently design, construct, implement and operate our new CRM computer system, additional professional and internal costs necessary for compliance with recent and proposed future changes in Securities and Exchange Commission, New York Stock Exchange and accounting rules, strikes and unemployment levels, our efforts to evaluate and potentially reduce internal costs, economic and other developments associated with the war on terrorism and its impact on the economy, general economic conditions and other factors described under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended August 25, 2012 and in other filings with the Securities and Exchange Commission.  We undertake no obligation to update any forward looking statements to reflect events or circumstances arising after the date on which such statements are made.

Business Overview

UniFirst Corporation, together with its subsidiaries, hereunder referred to as “we”, “our”, the “Company”, or “UniFirst”, is one of the largest providers of workplace uniforms and protective clothing in the United States.  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.  We also rent industrial wiping products, floor mats, facility service products and other non-garment items, and provide first aid cabinet services and other safety supplies, to a variety of manufacturers, retailers and service companies.

We serve businesses of all sizes in numerous industry categories. 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, and others who require employee clothing for image, identification, protection or utility purposes. We also provide our customers with restroom supplies, including air fresheners, paper products and hand soaps.

At certain specialized facilities, we also decontaminate and clean work clothes that may have been exposed to radioactive materials and service special cleanroom protective wear. Typical customers for these specialized services include government agencies, research and development laboratories, high technology companies and utilities operating nuclear reactors.

We continue to expand into additional geographic markets through acquisitions and organic growth.  We currently service over 240,000 customer locations in the United States, Canada and Europe from 219 customer service, distribution and manufacturing facilities.

As discussed and described in Note 11 to the Consolidated Financial Statements, we have five reporting segments: US and Canadian Rental and Cleaning, Manufacturing (“MFG”), Corporate, Specialty Garments Rental and Cleaning (“Specialty Garments”) and First Aid. We refer to the laundry locations of the US and Canadian Rental and Cleaning reporting segment as “industrial laundries” or “industrial laundry locations”, and to the US and Canadian Rental and Cleaning, MFG, and Corporate reporting segments combined as our “core laundry operations.”

Critical Accounting Policies and Estimates

The discussion of our financial condition and results of operations is based upon the Consolidated Financial Statements, which have been prepared in conformity with United States generally accepted accounting principles (“US GAAP”). As such, management is required to make certain estimates, judgments and assumptions that are believed to be reasonable based on the information available. These estimates and assumptions affect the reported amount of assets and liabilities, revenues and expenses, and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from these estimates under different assumptions or conditions.

Critical accounting policies are defined as those that are reflective of significant judgments and uncertainties, the most important and pervasive accounting policies used and areas most sensitive to material changes from external factors. See the Critical Accounting Policies and Estimates included in the Management Discussion and Analysis section of our Annual Report on Form 10-K for the fiscal year ended August 25, 2012 for additional discussion of the application of these policies.

Results of Operations

The following table presents certain selected financial data, including the percentage of revenues represented by each item, for the thirteen weeks ended November 24, 2012 and November 26, 2011.  Cost of revenues presented in the table below include merchandise costs related to the amortization of rental merchandise in service and direct sales as well as labor and other production, service and delivery costs associated with operating our industrial laundries, Specialty Garments facilities, First Aid locations and our distribution center. 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 and operating locations including information systems, engineering, materials management, manufacturing planning, finance, budgeting, and human resources.

	Thirteen weeks ended
(In thousands, except percentages)	November 24, 2012			% of Revenues			November 26, 2011		% of Revenues			% Change
Revenues	$	332,569			100	%	$	313,025		100.0	%		6.2	%
Operating expenses:
Cost of revenues (1)		201,551			60.6			195,139		62.3			3.3
Selling and administrative expenses (1)		64,288			19.3			59,124		18.9			8.7
Depreciation and amortization		16,771			5.0			16,408		5.2			2.2
Total operating expenses		282,610			85.0			270,671		86.5			4.4
Income from operations		49,959			15.0			42,354		13.5			18.0
Other expense (income)		(467	)		(0.1	)		569		0.2			-182.1
Income before income taxes		50,426			15.2			41,785		13.3			20.7
Provision for income taxes		19,666			5.9			15,983		5.1			23.0
Net income	$	30,760			9.2	%	$	25,802		8.2	%		19.2	%

(1) Exclusive of depreciation on our property, plant and equipment and amortization on our intangible assets.

General

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. We also rent industrial wiping products, floor mats, facility service products, other non-garment items, and provide first aid cabinet services and other safety supplies, to a variety of manufacturers, retailers and service companies. We have five reporting segments, US and Canadian Rental and Cleaning, Manufacturing (“MFG”), Corporate, Specialty Garments Rental and Cleaning (“Specialty Garments”), and First Aid. We refer to the US and Canadian Rental and Cleaning, MFG, and Corporate reporting segments combined as our “core laundry operations.”

Cost of revenues include merchandise costs related to the amortization of rental merchandise in service and 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. 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 and operating locations including information systems, engineering, materials management, manufacturing planning, finance, budgeting, and human resources.

As part of our recent revenue growth, we have been experiencing increased merchandise costs.  This increase has been primarily due to our increased investment in merchandise to the levels needed to support our growing wearer base.  During fiscal 2009 and early fiscal 2010, our results of operations benefited from our utilization of used garments that our customers returned to us as a result of reductions in their workforces. Since then, we have put significantly more new garments into service to meet the day-to-day needs of our existing wearer base.  In addition, increased new account sales, including some larger national accounts, have also required us to make a large initial investment in merchandise. The increased merchandise cost is also the result of strong growth in our flame resistant and high visibility product lines.  This growth was largely the result of increased oil and natural gas exploration as well as enhanced regulatory requirements that have caused uniform wearers in a number of industries to convert to these more protective garments.

The price of fuel and energy needed to run our vehicles and equipment is unpredictable and fluctuates based on events outside our control, including geopolitical developments, supply and demand for oil and gas, actions by OPEC and other oil and gas producers, war and unrest in oil producing countries, regional production patterns, limits on refining capacities, natural disasters and environmental concerns.  Future increases in fuel costs could impact our results going forward.

The current worldwide economic uncertainty may negatively impact our revenues and operating performance in fiscal 2013 and beyond due to the impact on spending plans and employment levels of our customers and sales prospects.  Throughout fiscal 2012 and into fiscal 2013, U.S. and Canadian unemployment rates remained high, which had a negative effect on wearer levels and, as a result, on our business.

Thirteen Weeks Ended November 24, 2012 Compared with Thirteen Weeks Ended November 26, 2011

Revenues

	November 24,		November 26,		Dollar			Percent
(In thousands, except percentages)	2012		2011		Change			Change
Core Laundry Operations	$	294,560	$	272,273	$	22,287			8.2	%
Specialty Garments		27,884		30,268		(2,384	)		-7.9
First Aid		10,125		10,484		(359	)		-3.4
Consolidated total	$	332,569	$	313,025	$	19,544			6.2	%

For the thirteen weeks ended November 24, 2012, our consolidated revenues increased by $19.5 million from the comparable period in fiscal 2012, or 6.2%.  This increase was due to a $22.3 million increase in revenues from our core laundry operations.  Core laundry operations’ revenues increased to $294.6 million for the thirteen weeks ended November 24, 2012 from $272.3 million for the comparable period of fiscal 2012, or 8.2%. This increase in the core laundry operations’ revenue was attributable to positive organic growth of 8.0%.  The core laundry operations’ revenue growth also benefited from the effect of favorable fluctuations in the Canadian foreign exchange rate, which accounted for a 0.2% increase in revenue for the thirteen weeks ended November 24, 2012 compared to the comparable period in fiscal 2012.

Specialty Garments’ revenues decreased to $27.9 million in the first fiscal quarter of 2013 from $30.3 million in the comparable period of 2012, a decrease of 7.9%.  This decrease was primarily the result of slower starts to the fiscal year in the segment's European and cleanroom operations as well as the completion of two large power reactor rebuild projects in the fourth quarter of fiscal 2012.  This segment’s results are often affected by the timing and length of its customers’ power reactor outages as well as its project-based activities.  First Aid revenues decreased by $0.4 million, or 3.4%.

Cost of Revenues

For the thirteen weeks ended November 24, 2012, cost of revenues decreased to 60.6% of revenues, or $201.6 million, from 62.3% of revenues, or $195.1 million, for the thirteen weeks ended November 26, 2011.  This decrease was primarily due to lower payroll, energy and other production costs as a percentage of revenues in our core laundry operations, primarily due to the strong revenue growth this segment experienced in the thirteen weeks ended November 24, 2012.  These lower costs as a percentage of  revenues were partially offset by an increase in cost of revenues for the Specialty Garments’ segment as a percentage of revenues due to the revenue contraction that segment experienced during the quarter.

Selling and Administrative Expense

Our selling and administrative expenses increased to 19.3% of revenues, or $64.3 million, for the thirteen weeks ended November 24, 2012 from 18.9% of revenues, or $59.1 million, for the comparable period of fiscal 2012.  This increase primarily was due to higher payroll and payroll-related costs as a percentage of revenues.

Depreciation and Amortization

Our depreciation and amortization expense was $16.8 million, or 5.0% of revenues, for the thirteen weeks ended November 24, 2012 compared to $16.4 million, or 5.2% of revenues, for the thirteen weeks ended November 26, 2011. The increase in depreciation and amortization expense was due to capital expenditure and acquisition activity in earlier periods.

Income from Operations

For the thirteen weeks ended November 24, 2012 and November 26, 2011, the revenue growth in our core laundry operations, as well as the change in our cost of revenues, discussed above, resulted in the following changes in our income from operations:

	November 24,		November 26,		Dollar			Percent
(In thousands, except percentages)	2012 (1)		2011 (1)		Change			Change
Core Laundry Operations	$	44,528	$	34,982	$	9,546			27.3	%
Specialty Garments		4,704		6,566		(1,862	)		-28.3
First Aid		727		806		(79	)		-9.8
Consolidated total	$	49,959	$	42,354	$	7,605			18.0	%

Other Expense (income)

Other expense (income), which includes interest expense, interest income and foreign currency exchange (gain) loss was a gain of $0.5 million for the thirteen weeks ended November 24, 2012 compared to a loss of $0.6 million in the thirteen weeks ended November 26, 2011.  This fluctuation was due to foreign exchange gains in the thirteen weeks ended November 24, 2012 of $0.2 million compared to foreign exchange losses of $0.6 million in the comparable period of fiscal 2012.  In addition, net interest income in the thirteen weeks ended November 24, 2012 increased to $0.3 million from $0.1 million in the thirteen weeks ended November 26, 2011. The benefit related to lower net interest expense was primarily due to slightly lower debt outstanding in the thirteen weeks ended November 24, 2012 compared to the comparable period of fiscal 2012

Provision for Income Taxes

Our effective income tax rate was 39.0% for the thirteen weeks ended November 24, 2012, as compared to 38.3% for the thirteen weeks ended November 26, 2011.  Our tax rate in the first quarter of fiscal 2013 was higher than in the first quarter of fiscal 2012 primarily due to $0.4 million of tax expense that we recognized related to non-deductible compensation that was recorded in the first quarter of fiscal 2013.

Liquidity and Capital Resources

General

As of November 24, 2012, we had cash and cash equivalents of $152.7 million and working capital of $266.8 million. In addition, we generated $56.2 million and $159.4 million in cash from operating activities in the three months ended November 24, 2012 and the twelve months ended August 25, 2012, respectively. We believe that our current cash and cash equivalent balances, our cash generated from future operations and amounts available under our Credit Agreement (defined below) will be sufficient to meet our current anticipated working capital and capital expenditure requirements for at least the next 12 months.

Sources and Uses of Cash

During the thirteen weeks ended November 24, 2012, we generated cash from operating activities of $56.2 million resulting primarily from net income of $30.8 million, net of non-cash amounts charged for depreciation, amortization and accretion of $17.1 million and share-based compensation of $1.7 million.  We also generated cash as a result of changes in our assets and liabilities, net of acquisitions of $6.6 million.  In the first quarter of fiscal 2013, we used cash to, among other things, invest $25.1 million in capital expenditures.

We have accumulated $59.7 million in cash outside the United States that is expected to be invested indefinitely in our foreign subsidiaries.  If these funds were distributed to the U.S. in the form of dividends, we would likely be subject to additional U.S. income taxes.

Long-Term Debt and Borrowing Capacity

On May 5, 2011, we entered into a $250.0 million unsecured revolving credit agreement (the “Credit Agreement”) with a syndicate of banks, which matures on May 4, 2016.  Under the Credit Agreement, we are able to borrow funds at variable interest rates 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.  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. At November 24, 2012, the interest rates applicable to our borrowings under the Credit Agreement were calculated as LIBOR plus 100 basis points at the time of the respective borrowing.  As of November 24, 2012, we had no outstanding borrowings, letters of credit amounting to $43.7 million and $206.3 million available for borrowing under the Credit Agreement.

On September 14, 2006, we issued $100.0 million of floating rates notes (“Floating Rate Notes”) pursuant to a Note Purchase Agreement (“2006 Note Agreement”).  The Floating Rate Notes mature on September 14, 2013, bear interest at LIBOR plus 50 basis points and may be repaid at face value two years from the date of issuance.

As of November 24, 2012, we were in compliance with all covenants under the Credit Agreement and the 2006 Note Agreement.

Commitments and Contingencies

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. 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. 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. Over the years, we have settled, or contributed to the settlement of, actions or claims brought against us relating to the disposal of hazardous materials 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.

US 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. Significant judgment is required to determine the existence of a liability, as well as the amount to be recorded. We regularly consult with attorneys and outside consultants in our consideration of the relevant facts and circumstances before recording a contingent liability. Changes in enacted laws, regulatory orders or decrees, management’s estimates of costs, insurance proceeds, participation by other parties, the timing of payments and the input of outside consultants and attorneys based on changing legal or factual circumstances could have a material impact on the amounts recorded for environmental and other contingent liabilities.

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. 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. 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. We continue to address environmental conditions under terms of consent orders negotiated with the applicable environmental authorities or otherwise with respect to sites located in or related to Woburn, Massachusetts, Somerville, Massachusetts, Springfield, Massachusetts, Uvalde, Texas, Stockton, California, three sites related to former operations in Williamstown, Vermont, as well as sites located in Goldsboro, North Carolina, Wilmington, North Carolina and Landover, Maryland.

We have accrued certain costs related to the sites described above as it has been determined that the costs are probable and can be reasonably estimated. We continue to implement mitigation measures and to monitor environmental conditions at the Somerville, Massachusetts site. We also have potential exposure related to an additional parcel of land (the “Central Area”) related to the Woburn, Massachusetts site discussed above. Currently, the consent decree for the Woburn site does not define or require any remediation work in the Central Area. The United States Environmental Protection Agency (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.  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.  We have accrued costs to perform certain work responsive to EPA's comments.  In addition, in April 2011, we have responded to requests from the EPA under the Clean Air Act for information regarding our handling of and operations with respect to the laundering of soiled towels. 

We routinely review and evaluate sites that may require remediation and monitoring and determine our estimated costs based on various estimates and assumptions. These estimates are developed using our internal sources or by third-party environmental engineers or other service providers. Internally developed estimates are based on:

• Management’s judgment and experience in remediating and monitoring our sites;

• Information available from regulatory agencies as to costs of remediation and monitoring;

• 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; and

• The typical allocation of costs among PRPs.

There is usually a range of reasonable estimates of the costs associated with each site. Our accruals represent the amount within the range that constitutes our best estimate. 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. As of November 24, 2012, the risk-free interest rates we utilized ranged from 1.7% to 2.8%.

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. The changes to the amounts of our environmental liabilities for the thirteen weeks ended November 24, 2012 are as follows (in thousands):

	November 24, 2012
Beginning balance as of August 25, 2012	$	20,020
Costs incurred for which reserves have been provided		(247	)
Insurance proceeds received		33
Interest accretion		136
Changes in discount rates		(72	)
Balance as of November 24, 2012	$	19,870

Anticipated payments and insurance proceeds of currently identified environmental remediation liabilities as of November 24, 2012, for the next five fiscal years and thereafter, as measured in current dollars, are reflected below (in thousands).

(In thousands)	2013			2014			2015			2016			2017			Thereafter			Total
Estimated costs – current dollars	$	5,012		$	2,470		$	1,437		$	950		$	752		$	11,860		$	22,481
Estimated insurance proceeds		(126	)		(173	)		(159	)		(173	)		(159	)		(1,743	)		(2,533	)
Net anticipated costs	$	4,886		$	2,297		$	1,278		$	777		$	593		$	10,117		$	19,948
Effect of inflation																				6,839
Effect of discounting																				(6,917	)
Balance as of November 24, 2012																			$	19,870

Estimated insurance proceeds are primarily received from an annuity received as part of our legal settlement with an insurance company. Annual proceeds of approximately $0.3 million are deposited into an escrow account which funds remediation and monitoring costs for three sites related to our former operations in Williamstown, Vermont. 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 24, 2012, the balance in this escrow account, which is held in a trust and is not recorded in our Consolidated Balance Sheet, was approximately $3.2 million. 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 the site in Uvalde, Texas.

Our nuclear garment decontamination facilities are licensed by the Nuclear Regulatory Commission (“NRC”), or, in certain cases, by the applicable state agency, and are subject to regulation by federal, state and local authorities. There can be no assurance that such regulation will not lead to material disruptions in our garment decontamination business.

From time to time, we are also subject to legal proceedings and claims arising from the conduct of our business operations, including litigation related to charges for certain ancillary services on invoices, personal injury claims, customer contract matters, employment claims and environmental matters as described above. While it is impossible for us to ascertain the ultimate legal and financial liability with respect to contingent liabilities, including lawsuits and environmental contingencies, we believe that the aggregate amount of such liabilities, if any, in excess of amounts covered by insurance have been properly accrued in accordance with accounting principles generally accepted in the United States. It is possible, however, that future financial position and/or results of operations for any particular future period could be materially affected by changes in our assumptions or strategies related to these contingencies or changes out of our control.

In addition, on December 31, 2012, we received a letter from counsel for New England Compounding Center (“NECC”) demanding, among other things, that we indemnify NECC regarding claims made against NECC, including those related to NECC’s highly-publicized compounding and sale of tainted methylprednisolone acetate.  This demand relates to the limited, once-a-month cleaning services we provided to portions of NECC’s clean room facilities.  Based on our preliminary review of this matter, we believe that NECC’s claims are without merit.  We have notified our insurer of this claim.  Based on the information currently available, we are unable to reasonably assess the ultimate outcome of this matter or an estimate or range of estimates of any potential losses.

Off-Balance Sheet Arrangements

As of November 24, 2012, we did not have any off-balance-sheet arrangements, as defined in Item 303(a)(4)(ii) of Securities and Exchange Commission Regulation S-K.

Seasonality

Historically, our revenues and operating results have varied from quarter to quarter and are expected to continue to fluctuate in the future. These fluctuations have been due to a number of factors, including: general economic conditions in our markets; the timing of acquisitions and of commencing start-up operations and related costs; our effectiveness in integrating acquired businesses and start-up operations; the timing of nuclear plant outages; capital expenditures; seasonal rental and purchasing patterns of our customers; and price changes in response to competitive factors. In addition, our operating results historically have been lower during the second and fourth fiscal quarters than during the other quarters of the fiscal year. The operating results for any historical quarter are not necessarily indicative of the results to be expected for an entire fiscal year or any other interim periods.

Effects of Inflation

In general, we believe that our results of operations are not dependent on moderate changes in the inflation rate.  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 consistent with the rate of inflation, and continued focus on improvements of operational productivity.

Energy Costs

Significant increases in energy costs, specifically with respect to natural gas and gasoline, can materially affect our results of operations and financial condition.  

Contractual Obligations and Other Commercial Commitments

As of November 24, 2012, there were no material changes in our contractual obligations that were disclosed in our Annual Report on Form 10-K for the year ended August 25, 2012.

Recent Accounting Pronouncements

In May 2011, the FASB issued updated accounting guidance to amend existing requirements for fair value measurements and disclosures.  The guidance expands the disclosure requirements around fair value measurements categorized in Level 3 of the fair value hierarchy and requires disclosure of the level in the fair value hierarchy of items that are not measured at fair value but whose fair value must be disclosed.  It also clarifies and expands upon existing requirements for fair value measurements of financial assets and liabilities as well as instruments classified in shareholders’ equity.  The guidance is effective for interim and annual financial periods beginning after December 15, 2011.  We adopted this revised guidance on August 26, 2012 and the adoption did not have a material impact on our financial statements.

In June 2011, the FASB issued updated accounting guidance that improves the comparability, consistency, and transparency of financial reporting and increases the prominence of items reported in other comprehensive income by eliminating the option to present components of other comprehensive income as part of the statement of changes in shareholders’ equity.  The amendments to the existing standard require that all nonowner changes in shareholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  The amendments to the existing standard do not change the current option for presenting components of other comprehensive income (“OCI”) gross or net of the effect of income taxes, provided that such tax effects are presented in the statement in which OCI is presented or disclosed in the notes to the financial statements.  Additionally, the standard does not affect the calculation or reporting of earnings per share.  This guidance is effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2011 and is to be applied retrospectively, with early adoption permitted. We adopted this revised guidance on August 26, 2012 and the adoption did not have a material impact on our financial statements.

In September 2011, the FASB issued updated guidance intended to simplify how entities, both public and nonpublic, test for goodwill impairment.  This guidance permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test.  Also, the guidance improves the examples of events and circumstances that an entity having a reporting unit with a zero or negative carrying amount should consider in determining whether to measure an impairment loss, if any, under the second step of the goodwill impairment test.  This guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted.  We adopted this revised guidance on August 26, 2012 and the adoption did not have a material impact on our financial statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Foreign Currency Exchange Risk

We have determined that all of our foreign subsidiaries operate primarily in local currencies that represent the functional currencies of such subsidiaries. All assets and liabilities of our foreign subsidiaries are translated into U.S. dollars using the exchange rate prevailing at the balance sheet date. The effect of exchange rate fluctuations on the translation of assets and liabilities is recorded as a component of shareholders’ equity. Revenues and expenses are translated at the average exchange rates in effect during each month of the fiscal year. As such, our financial condition and operating results are affected by fluctuations in the value of the U.S. dollar as compared to currencies in foreign countries.  Revenues denominated in currencies other than the U.S. dollar represented approximately 8.7% of total consolidated revenues for the thirteen weeks ended November 24, 2012, and total assets denominated in currencies other than the U.S. dollar represented approximately 10.9% of total consolidated assets at November 24, 2012. If exchange rates had increased or decreased by 10% from the actual rates in effect during the thirteen weeks ended and as of November 24, 2012, our revenues and assets for the thirteen weeks ended and as of November 24, 2012 would have increased or decreased by approximately $2.9 million and $14.2 million, respectively.

We do not operate a hedging program to mitigate the effect of a significant change in the value of our foreign subsidiaries functional currencies, which include the Canadian Dollar, Euro, British Pound, and Mexican Peso, as compared to the U.S. dollar. Any gains or   losses resulting from foreign currency transactions, including exchange rate fluctuations on intercompany accounts, are reported as transaction (gains) losses in our other expense (income). The intercompany payables and receivables are denominated in Canadian Dollars, Euros, British Pounds and Mexican Pesos. During the thirteen weeks ended November 24, 2012, transaction gains included in other expense (income) were approximately $0.2 million. If the exchange rates had changed by 10% during the thirteen weeks ended November 24, 2012, we would have recognized exchange gains or losses of approximately $1.1 million.

Interest Rate Sensitivity

We are exposed to market risk from changes in interest rates which may adversely affect our financial position, results of operations and cash flows. In seeking to minimize the risks from interest rate fluctuations, we manage these exposures through our regular operating and financing activities. We are exposed to interest rate risk primarily through our borrowings under our Credit Agreement with a syndicate of banks and our Floating Rate Notes which were purchased by a group of insurance companies pursuant to the 2006 Note Agreement. Under both agreements, we borrow funds at variable interest rates based on the Eurodollar rate or LIBOR rates. If the LIBOR and Eurodollar rates fluctuated by 10% from the actual rates in effect during the thirteen weeks ended November 24, 2012, our interest expense would have fluctuated by less than $0.1 million from the interest expense recognized during that same period.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As required by Rule 13a-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we carried out an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based upon their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that material information relating to the Company required to be disclosed by the Company in reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms and to ensure that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.  In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurances of achieving the desired control objectives, and management necessarily was required to apply its judgment in designing and evaluating the controls and procedures. We continue to review our disclosure controls and procedures, and our internal control over financial reporting, and may from time to time make changes aimed at enhancing their effectiveness and to ensure that our systems evolve with our business.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the first quarter of fiscal year 2013 that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we are subject to legal proceedings and claims arising from the current conduct of our business operations, including personal injury, customer contract, employment claims and environmental matters as described in our Consolidated Financial Statements.  We maintain insurance coverage providing indemnification against many of such claims, and we do not expect that we will sustain any material loss as a result thereof.  Refer to Note 8, “Commitments and Contingencies,” to the Consolidated Financial Statements for further discussion.

ITEM 1A. RISK FACTORS

To our knowledge, except as set forth below under this “Item 1A. Risk Factors,” there have been no material changes in the risk factors described in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended August 25, 2012.  In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended August 25, 2012, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.

In addition to contingencies and claims relating to environmental compliance matters, we may from time to time be subject to legal proceedings and claims related to our business operations which may adversely affect our financial condition and operating results.

In addition to contingencies and claims relating to environmental compliance matters, we are subject from time to time to legal proceedings and claims arising from the conduct of our business operations, including personal injury claims, customer contract matters and employment claims.  Certain of these claims are typically not covered by our available insurance.  In addition, claims occasionally result in significant investigation and litigation expenses and, if successful, may result in material losses to us.  Certain claims may also result in significant adverse publicity against us.  As a consequence, successful claims against us not covered by our available insurance coverage could have a material adverse effect on our business, financial condition and results of operation.

In particular, on December 31, 2012, we received a letter from counsel for New England Compounding Center (“NECC”) demanding, among other things, that we indemnify NECC regarding claims made against NECC, including those related to NECC’s highly-publicized compounding and sale of tainted methylprednisolone acetate.  This demand relates to the limited, once-a-month cleaning services we provided to portions of NECC’s clean room facilities.  Based on our preliminary review of this matter, we believe that NECC’s claims are without merit.  We have notified our insurer of this claim.  Based on the information currently available, we are unable to reasonably assess the ultimate outcome of this matter or an estimate or range of estimates of any potential losses.  If we are found to be liable with respect to claims brought against us relating to NECC that are not covered by our available insurance, we may incur liabilities that are material to our financial condition and operating results.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.  MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.  OTHER INFORMATION

None.

 ITEM 6. EXHIBITS

*	31.1 Rule 13a-14(a)/15d-14(a) Certification of Ronald D. Croatti
*	31.2 Rule 13a-14(a)/15d-14(a) Certification of Steven S. Sintros
**	32.1 Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
**	32.2 Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

*** 101 The following materials from UniFirst Corporation’s Quarterly Report on Form 10-Q for the quarter ended November 24, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Cash Flows, and (iv) Notes to Consolidated Financial Statements.

*	Filed herewith
**	Furnished herewith

*** Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under these sections.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

January 3, 2013		UniFirst Corporation
	By:	/s/ Ronald D. Croatti
		Ronald D. Croatti
		President and Chief Executive Officer
January 3, 2013
	By:	/s/ Steven S. Sintros
		Steven S. Sintros
		Vice President and Chief Financial Officer

 EXHIBIT INDEX

*	31.1 Rule 13a-14(a)/15d-14(a) Certification of Ronald D. Croatti
*	31.2 Rule 13a-14(a)/15d-14(a) Certification of Steven S. Sintros
**	32.1 Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
**	32.2 Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

*** 101 The following materials from UniFirst Corporation’s Quarterly Report on Form 10-Q for the quarter ended November 24, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements.

*	Filed herewith
**	Furnished herewith

*** Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under these sections.

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECURITIES

EXCHANGE ACT RULE 13a-14(a)/15d-14(a) AS ADOPTED PURSUANT TO SECTION

302 OF THE SARBANES-OXLEY ACT OF 2002

I, Ronald D. Croatti, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of UniFirst Corporation;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4.	The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant, and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
Date: January 3, 2013			By:	/s/ Ronald D. Croatti
				Ronald D. Croatti,
				Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECURITIES

EXCHANGE ACT RULE 13a-14(a)/15d-14(a) AS ADOPTED PURSUANT TO SECTION

302 OF THE SARBANES-OXLEY ACT OF 2002

I, Steven S. Sintros, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of UniFirst Corporation;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4.	The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant, and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
Date: January 3, 2013			By:	/s/ Steven S. Sintros
				Steven S. Sintros
				Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION

906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), I, Ronald D. Croatti, President and Chief Executive Officer of UniFirst Corporation (the “Company”), do hereby certify, to the best of my knowledge, that:

(1)   The Company’s Quarterly Report on Form 10-Q for the quarter ended November 24, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: January 3, 2013	By:	/s/ Ronald D. Croatti
		Ronald D. Croatti, President and
		Chief Executive Officer (Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION

906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), I, Steven S. Sintros, Chief Financial Officer of UniFirst Corporation (the “Company”), do hereby certify, to the best of my knowledge, that:

(1)   The Company’s Quarterly Report on Form 10-Q for the quarter ended November 24, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: January 3, 2013	By:	/s/ Steven S. Sintros
		Steven S. Sintros
		Chief Financial Officer (Principal Financial Officer)

XML

Net Income Per Share, Schedule of Earnings Per Share, Basic, Two Class Method (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Nov. 24, 2012	Nov. 26, 2011
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	$ 30,760	$ 25,802
Weighted average number of shares - basic	19,955	19,877
Common Class A [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	24,191	20,258
Weighted average number of shares - basic	14,925	14,838
Earning per share - basic (in amounts per share)	$ 1.62	$ 1.37
Common Class B [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	6,025	5,068
Weighted average number of shares - basic	4,647	4,641
Earning per share - basic (in amounts per share)	$ 1.30	$ 1.09
Unvested Participating Shares [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	$ 544	$ 476
Weighted average number of shares - basic	383	398

XML

Acquisitions

3 Months Ended

Nov. 24, 2012

Acquisitions [Abstract]

Acquisitions

3. Acquisitions

During the thirteen weeks ended November 24, 2012, the Company acquired no businesses. Whenever the Company acquires a business, consistent with current accounting guidance, the results of operations of the acquisition are included in the Company's consolidated financial results from the date of the acquisition.

XML

Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Nov. 24, 2012	Nov. 26, 2011
Income Taxes [Abstract]
Effective income tax rate (in hundredths)	39.00%	38.30%
Income tax expense attributable to non-deductible compensation	$ 400

XML

Commitments and Contingencies (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Nov. 24, 2012
Commitments and Contingencies [Abstract]
Number of sites related to former operations with environmental issues	3
Estimated impact of inflation per year (in hundredths)	3.00%
Risk-free rates of interest used to discount the remediation costs, minimum (in hundredths)	1.70%
Risk-free rates of interest used to discount the remediation costs, maximum (in hundredths)	2.80%
Rollforward of accrual for environmental liabilities [Rollforward]
Beginning balance	$ 20,020
Costs incurred for which reserves have been provided	(247)
Insurance proceeds received	33
Interest accretion	136
Changes in discount rates	(72)
Ending balance	19,870
Estimated costs - current dollars [Abstract]
2013	5,012
2014	2,470
2015	1,437
2016	950
2017	752
Thereafter	11,860
Total	22,481
Estimated insurance proceeds [Abstract]
2013	(126)
2014	(173)
2015	(159)
2016	(173)
2017	(159)
Thereafter	(1,743)
Total	(2,533)
Net anticipated costs [Abstract]
2013	4,886
2014	2,297
2015	1,278
2016	777
2017	593
Thereafter	10,117
Total	19,948
Effect of inflation	6,839
Effect of discounting	(6,917)
Balance as of November 24, 2012	19,870
Annual annuities from legal settlement with insurance company	300
Number of insurance companies paying legal settlements	3
Balance of escrow account which funds remediation and monitoring costs for sites related to former operations	$ 3,200

XML

Long-term Debt (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Nov. 24, 2012
Line of Credit [Member]
Debt Instrument [Line Items]
Line of Credit	$ 250,000
Maturity date	May 04, 2016
Terms	LIBOR plus 100 basis points at the time of the respective borrowing
Line of credit facility, amount outstanding	0
Outstanding letters of credit	43,700
Amount available for borrowing	206,300
Floating Rate Note [Member]
Debt Instrument [Line Items]
Maturity date	Sep. 14, 2013
Terms	LIBOR plus 50 basis points
Issuance of floating rate notes	$ 100,000
Debt instrument, maturity date range end	two years

XML

Segment Reporting (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Nov. 24, 2012	Nov. 26, 2011
Segment Reporting [Abstract]
Number of operating segments	6	6
Number of reporting segments	5	5
Segment Reporting Information [Line Items]
Revenues	$ 332,569	$ 313,025
Income (loss) from operations	49,959	42,354
Interest (income) expense, net	(307)	(58)
Income (loss) before taxes	50,426	41,785
US and Canadian Rental and Cleaning [Member]
Segment Reporting Information [Line Items]
Revenues	291,283	269,210
Income (loss) from operations	51,271	43,731
Interest (income) expense, net	(694)	(579)
Income (loss) before taxes	51,965	44,319
MFG [Member]
Segment Reporting Information [Line Items]
Revenues	42,595	41,386
Income (loss) from operations	15,322	11,482
Interest (income) expense, net	0	0
Income (loss) before taxes	15,247	11,603
Net Interco MFG Elim [Member]
Segment Reporting Information [Line Items]
Revenues	(42,595)	(41,386)
Income (loss) from operations	(2,966)	(32)
Interest (income) expense, net	0	0
Income (loss) before taxes	(2,966)	(32)
Corporate [Member]
Segment Reporting Information [Line Items]
Revenues	3,277	3,063
Income (loss) from operations	(19,099)	(20,199)
Interest (income) expense, net	387	521
Income (loss) before taxes	(19,498)	(20,702)
Subtotal Core Laundry Operations [Member]
Segment Reporting Information [Line Items]
Revenues	294,560	272,273
Income (loss) from operations	44,528	34,982
Interest (income) expense, net	(307)	(58)
Income (loss) before taxes	44,748	35,188
Specialty Garments [Member]
Segment Reporting Information [Line Items]
Revenues	27,884	30,268
Income (loss) from operations	4,704	6,566
Interest (income) expense, net	0	0
Income (loss) before taxes	4,951	5,791
First Aid [Member]
Segment Reporting Information [Line Items]
Revenues	10,125	10,484
Income (loss) from operations	727	806
Interest (income) expense, net	0	0
Income (loss) before taxes	$ 727	$ 806

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Recent Accounting Pronouncements

3 Months Ended

Nov. 24, 2012

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

2. Recent Accounting Pronouncements

In May 2011, the FASB issued updated accounting guidance to amend existing requirements for fair value measurements and disclosures.  The guidance expands the disclosure requirements around fair value measurements categorized in Level 3 of the fair value hierarchy and requires disclosure of the level in the fair value hierarchy of items that are not measured at fair value but whose fair value must be disclosed.  It also clarifies and expands upon existing requirements for fair value measurements of financial assets and liabilities as well as instruments classified in shareholders’ equity.  The guidance is effective for interim and annual financial periods beginning after December 15, 2011.  The Company adopted this revised guidance on August 26, 2012 and the adoption did not have a material impact on its financial statements.

In June 2011, the FASB issued updated accounting guidance that improves the comparability, consistency, and transparency of financial reporting and increases the prominence of items reported in other comprehensive income by eliminating the option to present components of other comprehensive income as part of the statement of changes in shareholders’ equity.  The amendments to the existing standard require that all nonowner changes in shareholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  The amendments to the existing standard do not change the current option for presenting components of OCI gross or net of the effect of income taxes, provided that such tax effects are presented in the statement in which OCI is presented or disclosed in the notes to the financial statements.  Additionally, the standard does not affect the calculation or reporting of earnings per share.  This guidance is effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2011 and is to be applied retrospectively, with early adoption permitted.  The Company adopted this revised guidance on August 26, 2012 and the adoption did not have a material impact on its financial statements.

In September 2011, the FASB issued updated guidance intended to simplify how entities, both public and nonpublic, test for goodwill impairment.  This guidance permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test.  Also, the guidance improves the examples of events and circumstances that an entity having a reporting unit with a zero or negative carrying amount should consider in determining whether to measure an impairment loss, if any, under the second step of the goodwill impairment test.  This guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted.  The Company adopted this revised guidance on August 26, 2012 and the adoption did not have a material impact on its financial statements.

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Other Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Nov. 24, 2012	Nov. 26, 2011
Other Comprehensive Income (Loss) [Abstract]
Net income	$ 30,760	$ 25,802
Comprehensive income	$ 31,135	$ 18,404

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Consolidated Statements of Income (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Nov. 24, 2012		Nov. 26, 2011
Consolidated Statements of Income [Abstract]
Revenues	$ 332,569		$ 313,025
Operating expenses:
Cost of revenues (1)	201,551	[1]	195,139	[1]
Selling and administrative expenses (1)	64,288	[1]	59,124	[1]
Depreciation and amortization	16,771		16,408
Total operating expenses	282,610		270,671
Income from operations	49,959		42,354
Other (income) expense:
Interest expense	460		573
Interest income	(767)		(631)
Foreign exchange (gain) loss	(160)		627
Total other (income) expense	(467)		569
Income before income taxes	50,426		41,785
Provision for income taxes	19,666		15,983
Net income	30,760		25,802
Weighted average number of shares outstanding - Basic:
Common Stock (in shares)	19,955		19,877
Common Class A [Member]
Other (income) expense:
Net income	24,191		20,258
Income per share - Basic:
Common Stock (in dollars per share)	$ 1.62		$ 1.37
Income per share - Diluted:
Common Stock (in dollars per share)	$ 1.54		$ 1.30
Income allocated to - Basic:
Common Stock	24,191		20,258
Income allocated to - Diluted:
Common Stock	30,244		25,350
Weighted average number of shares outstanding - Basic:
Common Stock (in shares)	14,925		14,838
Weighted average number of shares outstanding - Diluted:
Common Stock (in shares)	19,693		19,557
Dividends per share:
Common Stock (in dollars per share)	$ 0.0375		$ 0.0375
Common Class B [Member]
Other (income) expense:
Net income	6,025		5,068
Income per share - Basic:
Common Stock (in dollars per share)	$ 1.30		$ 1.09
Income allocated to - Basic:
Common Stock	$ 6,025		$ 5,068
Weighted average number of shares outstanding - Basic:
Common Stock (in shares)	4,647		4,641
Dividends per share:
Common Stock (in dollars per share)	$ 0.0300		$ 0.0300

[1] Exclusive of depreciation on the Company's property, plant and equipment and amortization on its intangible assets.

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Nov. 24, 2012		Nov. 26, 2011
Cash flows from operating activities:
Net income	$ 30,760		$ 25,802
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	14,305		13,727
Amortization of intangible assets	2,466		2,681
Amortization of deferred financing costs	59		59
Share-based compensation	1,705		1,668
Accretion on environmental contingencies	136		158
Accretion on asset retirement obligations	166		158
Deferred income taxes	(18)		51
Changes in assets and liabilities, net of acquisitions:
Receivables	(18,457)		(16,100)
Inventories	221		2,332
Rental merchandise in service	2,102		(7,505)
Prepaid expenses	(2,867)		(3,137)
Accounts payable	11,183		3,529
Accrued liabilities	2,373		623
Prepaid and accrued income taxes	12,033		6,608
Net cash provided by operating activities	56,167		30,654
Cash flows from investing activities:
Capital expenditures	(25,103)		(13,966)
Other	(318)		(118)
Net cash used in investing activities	(25,421)		(14,084)
Cash flows from financing activities:
Proceeds from long-term debt	0		7,000
Payments on long-term debt	0		(15,371)
Proceeds from exercise of Common Stock options	757		248
Payment of cash dividends	(713)		(709)
Other	1,954		0
Net cash provided by (used in) financing activities	1,998		(8,832)
Effect of exchange rate changes	(203)		(2,427)
Net increase in cash and cash equivalents	32,541		5,311
Cash and cash equivalents at beginning of period	120,123	[1]	48,812	[1]
Cash and cash equivalents at end of period	$ 152,664		$ 54,123

[1] Derived from audited financial statements.

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Segment Reporting (Tables)

3 Months Ended

Nov. 24, 2012

Segment Reporting [Abstract]

Segment information from operations

The Company refers to the US 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):

	US and
	Canadian											Subtotal
	Rental and					Net Interco						Core Laundry			Specialty
Thirteen weeks ended	Cleaning			MFG		MFG Elim			Corporate			Operations			Garments		First Aid		Total
November 24, 2012
Revenues	$	291,283		$	42,595	$	(42,595	)	$	3,277		$	294,560		$	27,884	$	10,125	$	332,569
Income (loss) from operations	$	51,271		$	15,322	$	(2,966	)	$	(19,099	)	$	44,528		$	4,704	$	727	$	49,959
Interest (income)  expense, net	$	(694	)	$	-	$	-		$	387		$	(307	)	$	-	$	-	$	(307	)
Income (loss) before taxes	$	51,965		$	15,247	$	(2,966	)	$	(19,498	)	$	44,748		$	4,951	$	727	$	50,426

November 26, 2011
Revenues	$	269,210		$	41,386	$	(41,386	)	$	3,063		$	272,273	$	30,268	$	10,484	$	313,025
Income (loss) from operations	$	43,731		$	11,482	$	(32	)	$	(20,199	)	$	34,982	$	6,566	$	806	$	42,354
Interest (income) expense, net	$	(579	)	$	-	$	-		$	521		$	(58)	$	-	$	-	$	(58	)
Income (loss) before taxes	$	44,319		$	11,603	$	(32	)	$	(20,702	)	$	35,188	$	5,791	$	806	$	41,785

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Employee Benefit Plans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Nov. 24, 2012	Nov. 26, 2011
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined contribution expense	$ 4,300	$ 2,800
Defined benefit pension expense	$ 600	$ 500

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Basis of Presentation

3 Months Ended

Nov. 24, 2012

Basis of Presentation [Abstract]

Basis of Presentation

1. Basis of Presentation

These Consolidated Financial Statements of UniFirst Corporation (the "Company") have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("US GAAP") have been condensed or omitted pursuant to such rules and regulations; however, the Company believes that the information furnished reflects all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim period.

It is suggested that these Consolidated Financial Statements be read in conjunction with the financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended August 25, 2012. There have been no material changes in the accounting policies followed by the Company during the current fiscal year. Results for an interim period are not indicative of any future interim periods or for an entire fiscal year.

Certain prior year amounts have been reclassified to conform to current year presentation.  These reclassifications did not impact current or historical net income or shareholder's equity.

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Consolidated Statements of Comprehensive Income (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Nov. 24, 2012		Nov. 26, 2011
Consolidated Statements of Income [Abstract]
Net income	$ 30,760		$ 25,802
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	325		(7,398)
Pension benefit liabilities, net (1)	50	[1]	0
Other comprehensive income (loss)	375		(7,398)
Comprehensive income	$ 31,135		$ 18,404

[1] Net of less than $0.1 million of tax expense for the thirteen weeks ended November 24, 2012.

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Segment Reporting

3 Months Ended

Nov. 24, 2012

Segment Reporting [Abstract]

Segment Reporting

11. Segment Reporting

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. The Company's chief operating decision maker is the Company's chief executive officer. The Company has six operating segments based on the information reviewed by its chief executive officer: US Rental and Cleaning, Canadian Rental and Cleaning, Manufacturing ("MFG"), Corporate, Specialty Garments Rental and Cleaning ("Specialty Garments") and First Aid. The US Rental and Cleaning and Canadian Rental and Cleaning operating segments have been combined to form the US and Canadian Rental and Cleaning reporting segment, and as a result, the Company has five reporting segments.

The US and Canadian Rental and Cleaning reporting segment purchases, rents, cleans, delivers and sells, uniforms and protective clothing and non-garment items in the United States and Canada.  The laundry locations of the US and Canadian Rental and Cleaning reporting segment are referred to by the Company as "industrial laundries" or "industrial laundry locations."

The MFG operating segment designs and manufactures uniforms and non-garment items solely for the purpose of providing these goods to the US and Canadian Rental and Cleaning reporting segment. MFG revenues are generated when goods are shipped from the Company's manufacturing facilities, or its subcontract manufacturers, to other Company locations. These revenues are recorded at a transfer price which is typically in excess of the actual manufacturing cost. Products are carried in inventory and subsequently placed in service and amortized at this transfer price. 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.  Income before income taxes from MFG net of the intercompany MFG elimination offsets the merchandise amortization costs incurred by the US 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.

The Corporate operating segment consists of costs associated with the Company's distribution center, sales and marketing, information systems, engineering, materials management, manufacturing planning, finance, budgeting, human resources, other general and administrative costs and interest expense. The revenues generated from the Corporate operating segment represent certain direct sales made by the Company directly from its distribution center. The products sold by this operating segment are the same products rented and sold by the US and Canadian Rental and Cleaning reporting segment. 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. 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. The assets that give rise to this depreciation and amortization are included in the total assets of the US and Canadian Rental and Cleaning reporting segment as this is how they are tracked and reviewed by the Company.  The majority of expenses accounted for within the Corporate segment relate to costs of the US and Canadian Rental and Cleaning segment, with the remainder of the costs relating to the Specialty Garment and First

Aid segments.

The Specialty Garments operating segment purchases, rents, cleans, delivers and sells, specialty garments and non-garment items primarily for nuclear and cleanroom applications. The First Aid operating segment sells first aid cabinet services and other safety supplies as well as maintains wholesale distribution and pill packaging operations.

The Company refers to the US 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):

	US and
	Canadian											Subtotal
	Rental and					Net Interco						Core Laundry			Specialty
Thirteen weeks ended	Cleaning			MFG		MFG Elim			Corporate			Operations			Garments		First Aid		Total
November 24, 2012
Revenues	$	291,283		$	42,595	$	(42,595	)	$	3,277		$	294,560		$	27,884	$	10,125	$	332,569
Income (loss) from operations	$	51,271		$	15,322	$	(2,966	)	$	(19,099	)	$	44,528		$	4,704	$	727	$	49,959
Interest (income)  expense, net	$	(694	)	$	-	$	-		$	387		$	(307	)	$	-	$	-	$	(307	)
Income (loss) before taxes	$	51,965		$	15,247	$	(2,966	)	$	(19,498	)	$	44,748		$	4,951	$	727	$	50,426

November 26, 2011
Revenues	$	269,210		$	41,386	$	(41,386	)	$	3,063		$	272,273	$	30,268	$	10,484	$	313,025
Income (loss) from operations	$	43,731		$	11,482	$	(32	)	$	(20,199	)	$	34,982	$	6,566	$	806	$	42,354
Interest (income) expense, net	$	(579	)	$	-	$	-		$	521		$	(58)	$	-	$	-	$	(58	)
Income (loss) before taxes	$	44,319		$	11,603	$	(32	)	$	(20,702	)	$	35,188	$	5,791	$	806	$	41,785

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Document And Entity Information (USD $)	3 Months Ended
	Nov. 24, 2012	Feb. 24, 2012	Dec. 27, 2012 Common Class A [Member]	Dec. 27, 2012 Common Class B [Member]
Entity Information [Line Items]
Entity Registrant Name	UNIFIRST CORP
Entity Central Index Key	0000717954
Current Fiscal Year End Date	--08-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$ 890,888,543
Entity Common Stock, Shares Outstanding			15,093,069	4,885,277
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Nov. 24, 2012

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Fair Value Measurements (Tables)

3 Months Ended

Nov. 24, 2012

Fair Value Measurements [Abstract]

Fair Value Measures and Disclosures, Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis

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

	As of November 24, 2012
	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents	$	35,106	$	-	$	-	$	35,106
Total	$	35,106	$	-	$	-	$	35,106

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Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Nov. 24, 2012	Aug. 25, 2012
Current Assets:
Cash and cash equivalents	$ 152,664	$ 120,123	[1]
Receivables, less reserves of $7,318 and $5,152, respectively	153,899	135,327	[1]
Inventories	75,309	75,420	[1]
Rental merchandise in service	136,219	138,284	[1]
Prepaid and deferred income taxes	12,721	12,785	[1]
Prepaid expenses	8,611	5,741	[1]
Total current assets	539,423	487,680	[1]
Property, plant and equipment:
Land, buildings and leasehold improvements	365,575	355,568	[1]
Machinery and equipment	437,614	425,274	[1]
Motor vehicles	141,978	141,370	[1]
Total property, plant and equipment	945,167	922,212	[1]
Less -- accumulated depreciation	522,094	510,008	[1]
Total property, plant and equipment, net	423,073	412,204	[1]
Goodwill	288,158	288,137	[1]
Customer contracts, net	46,249	48,580	[1]
Other intangible assets, net	1,757	1,951	[1]
Other assets	2,596	1,982	[1]
Total assets	1,301,256	1,240,534	[1]
Current liabilities:
Loans payable and current maturities of long-term debt	108,847	6,831	[1]
Accounts payable	63,545	52,340	[1]
Accrued liabilities	80,125	78,174	[1]
Accrued income taxes	20,142	8,180	[1]
Total current liabilities	272,659	145,525	[1]
Long-term liabilities:
Long-term debt, net of current maturities	155	100,155	[1]
Accrued liabilities	44,091	43,420	[1]
Accrued and deferred income taxes	54,543	54,509	[1]
Total long-term liabilities	98,789	198,084	[1]
Commitments and contingencies (Note 8)			[1]
Shareholders' equity:
Preferred stock, $1.00 par value; 2,000,000 shares authorized; no shares issued and outstanding	0	0	[1]
Capital surplus	45,443	42,984	[1]
Retained earnings	874,723	844,676	[1]
Accumulated other comprehensive income	7,646	7,271	[1]
Total shareholders' equity	929,808	896,925	[1]
Total liabilities and shareholders' equity	1,301,256	1,240,534	[1]
Common Class A [Member]
Shareholders' equity:
Common Stock	1,508	1,506	[1]
Common Class B [Member]
Shareholders' equity:
Common Stock	$ 488	$ 488	[1]

[1] Derived from audited financial statements.

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Net Income Per Share

3 Months Ended

Nov. 24, 2012

Net Income Per Share [Abstract]

Net Income Per Share

6. Net Income Per Share

The Company calculates net income per share in accordance with US GAAP, which requires the Company to allocate income to its unvested participating securities as part of its earnings per share ("EPS") calculations.  The following table sets forth the computation of basic earnings 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):

	Thirteen weeks ended
	November 24,		November 26,
	2012		2011
Net income available to shareholders	$	30,760	$	25,802
Allocation of net income for Basic:
Common Stock	$	24,191	$	20,258
Class B Common Stock		6,025		5,068
Unvested participating shares		544		476
	$	30,760	$	25,802
Weighted average number of shares for Basic:
Common Stock		14,925		14,838
Class B Common Stock		4,647		4,641
Unvested participating shares		383		398
		19,955		19,877
Earnings per share for Basic:
Common Stock	$	1.62	$	1.37
Class B Common Stock	$	1.30	$	1.09

For diluted EPS, the Company is required to calculate diluted EPS for Common Stock using the more dilutive of the following two methods:

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

For the thirteen weeks ended November 24, 2012 and November 26, 2011, the Company's diluted EPS assumes the conversion of the Class B Common Stock into Common Stock and uses the two-class method for its unvested participating shares as follows (in thousands, except per share data):

	Thirteen weeks ended November 24, 2012							Thirteen weeks ended November 26, 2011
	Earnings							Earnings
	to Common			Common				to Common			Common
	shareholders			Shares		EPS		shareholders			Shares		EPS
As reported - Basic	$	24,191			14,925	$	1.62	$	20,258			14,838	$	1.37
Add: effect of dilutive potential common shares
Share-Based Awards		-			121				-			78
Class B Common Stock		6,025			4,647				5,068			4,641
Add: Undistributed earnings allocated to unvested participating shares		531			-				463			-
Less: Undistributed earnings reallocated to unvested participating shares		(503	)		-				(439	)		-
Diluted EPS - Common Stock		30,244			19,693	$	1.54		25,350			19,557	$	1.30

There were no share-based awards that were excluded from the calculation of diluted earnings per share for the thirteen weeks ended November 24, 2012 because they were anti-dilutive.  Share-based awards that would result in the issuance 18,014 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended November 26, 2011 because they were anti-dilutive.

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Employee Benefit Plans

3 Months Ended

Nov. 24, 2012

Employee Benefit Plans [Abstract]

Employee Benefit Plans

5. Employee Benefit Plans

Defined Contribution Retirement Savings Plan

The Company has a defined contribution retirement savings plan with a 401(k) feature for all eligible employees not under collective bargaining agreements. The Company matches a portion of the employee's contribution and can make an additional contribution at its discretion. Contributions charged to expense under the plan for the thirteen weeks ended November 24, 2012 and November 26, 2011 were $4.3 million and $2.8 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, a non-contributory defined benefit pension plan covering union employees at one of its locations, and a frozen pension plan the Company assumed in connection with its acquisition of Textilease Corporation in fiscal 2004. The amounts charged to expense related to these plans for both the thirteen weeks ended November 24, 2012 and November 26, 2011 were $0.6 million and $0.5 million, respectively.

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Fair Value Measurements (Details) (USD $) In Thousands, unless otherwise specified	Nov. 24, 2012
Level 1 [Member]
Assets:
Cash equivalents	$ 35,106
Total	35,106
Level 2 [Member]
Assets:
Cash equivalents	0
Total	0
Level 3 [Member]
Assets:
Cash equivalents	0
Total	0
Fair Value, Measurements, Recurring [Member]
Assets:
Cash equivalents	35,106
Total	$ 35,106

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Net Income Per Share (Tables)

3 Months Ended

Nov. 24, 2012

Net Income Per Share [Abstract]

Schedule of Earnings Per Share, Basic, Two Class Method

The following table sets forth the computation of basic earnings 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):

	Thirteen weeks ended
	November 24,		November 26,
	2012		2011
Net income available to shareholders	$	30,760	$	25,802
Allocation of net income for Basic:
Common Stock	$	24,191	$	20,258
Class B Common Stock		6,025		5,068
Unvested participating shares		544		476
	$	30,760	$	25,802
Weighted average number of shares for Basic:
Common Stock		14,925		14,838
Class B Common Stock		4,647		4,641
Unvested participating shares		383		398
		19,955		19,877
Earnings per share for Basic:
Common Stock	$	1.62	$	1.37
Class B Common Stock	$	1.30	$	1.09

Schedule of Earnings Per Share, Diluted, Two Class Method

For the thirteen weeks ended November 24, 2012 and November 26, 2011, the Company's diluted EPS assumes the conversion of the Class B Common Stock into Common Stock and uses the two-class method for its unvested participating shares as follows (in thousands, except per share data):

	Thirteen weeks ended November 24, 2012							Thirteen weeks ended November 26, 2011
	Earnings							Earnings
	to Common			Common				to Common			Common
	shareholders			Shares		EPS		shareholders			Shares		EPS
As reported - Basic	$	24,191			14,925	$	1.62	$	20,258			14,838	$	1.37
Add: effect of dilutive potential common shares
Share-Based Awards		-			121				-			78
Class B Common Stock		6,025			4,647				5,068			4,641
Add: Undistributed earnings allocated to unvested participating shares		531			-				463			-
Less: Undistributed earnings reallocated to unvested participating shares		(503	)		-				(439	)		-
Diluted EPS - Common Stock		30,244			19,693	$	1.54		25,350			19,557	$	1.30

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Income Taxes

3 Months Ended

Nov. 24, 2012

Income Taxes [Abstract]

Income Taxes

9. Income Taxes

The Company's effective income tax rate was 39.0% for the thirteen weeks ended November 24, 2012, as compared to 38.3% for the thirteen weeks ended November 26, 2011.  The Company's tax rate in the first quarter of fiscal 2013 is higher than in the first quarter of fiscal 2012 primarily due to $0.4 million of tax expense that the Company recognized related to non-deductible compensation that was recorded in the first quarter of fiscal 2013. 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 24, 2012, there were no material changes in the amount of unrecognized tax benefits or the amount accrued for interest and penalties.

U.S. and Canadian federal income tax statutes have lapsed for filings up to and including fiscal years 2008 and 2005, respectively, and we are currently under audit for U.S. federal income taxes for 2010 and 2011. With a few exceptions, the Company is no longer subject to state and local income tax examinations for periods prior to fiscal 2007.  The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change significantly in the next 12 months.

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Asset Retirement Obligations

3 Months Ended

Nov. 24, 2012

Asset Retirement Obligations [Abstract]

Asset Retirement Obligations

7. Asset Retirement Obligations

The Company recognizes asset retirement obligations in the period in which they are incurred if a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. 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 thirty-two years.

A reconciliation of the Company's asset retirement liability is as follows (in thousands):

	November 24, 2012
Beginning balance as of August 25, 2012	$	10,120
Accretion expense		166
Ending balance as of November 24, 2012	$	10,286

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

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Commitments and Contingencies

3 Months Ended

Nov. 24, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

8. Commitments and Contingencies

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 waste and other substances. In particular, industrial laundries use and must dispose of detergent waste water 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. In the past, the Company has settled, or contributed to the settlement of, actions or claims brought against the Company relating to the disposal of hazardous materials and there can be no assurance that the Company will not have to expend material amounts to remediate the consequences of any such disposal in the future.

US 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. Significant judgment is required to determine the existence of a liability, as well as the amount to be recorded. The Company regularly consults with attorneys and outside consultants in its consideration of the relevant facts and circumstances before recording a contingent liability. Changes in enacted laws, regulatory orders or decrees, management’s estimates of costs, insurance proceeds, participation by other parties, the timing of payments and the input of outside consultants and attorneys based on changing legal or factual circumstances could have a material impact on the amounts recorded for environmental and other contingent liabilities.

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. 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. 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 the Company under such laws or expose the Company to third-party actions such as tort suits. The Company continues to address environmental conditions under terms of consent orders negotiated with the applicable environmental authorities or otherwise with respect to sites located in or related to Woburn, Massachusetts, Somerville, Massachusetts, Springfield, Massachusetts, Uvalde, Texas, Stockton, California, three sites related to former operations in Williamstown, Vermont, as well as sites located in Goldsboro, North Carolina, Wilmington, North Carolina and Landover, Maryland.

The Company has accrued certain costs related to the sites described above as it has been determined that the costs are probable and can be reasonably estimated. The Company continues to implement mitigation measures and to monitor environmental conditions at the Somerville, Massachusetts site. The Company also has potential exposure related to an additional parcel of land (the "Central Area") related to the Woburn, Massachusetts site discussed above. Currently, the consent decree for the Woburn site does not define or require any remediation work in the Central Area. 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 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.  The Company has accrued costs to perform certain work responsive to EPA's comments.  In addition, the Company has responded to requests from the EPA under the Clean Air Act for information regarding its handling of and operations with respect to the laundering of soiled towels.

The Company routinely reviews and evaluates sites that may require remediation and monitoring and determines its estimated costs based on various estimates and assumptions. These estimates are developed using its internal sources or by third party environmental engineers or other service providers. Internally developed estimates are based on:

• Management’s judgment and experience in remediating and monitoring the Company’s sites;

• Information available from regulatory agencies as to costs of remediation and monitoring;

• 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; and

• The typical allocation of costs among PRPs.

There is usually a range of reasonable estimates of the costs associated with each site. The Company’s accruals reflect the amount within the range that constitutes its best estimate. 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 24, 2012, the risk-free interest rates utilized by the Company ranged from 1.7% to 2.8%.

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 Consolidated Statements of Income.  The changes to the Company’s environmental liabilities for the thirteen weeks ended November 24, 2012 are as follows (in thousands):

	November 24, 2012
Beginning balance as of August 25, 2012	$	20,020
Costs incurred for which reserves have been provided		(247	)
Insurance proceeds received		33
Interest accretion		136
Changes in discount rates		(72	)
Balance as of November 24, 2012	$	19,870

Anticipated payments and insurance proceeds of currently identified environmental remediation liabilities as of November 24, 2012, for the next five fiscal years and thereafter, as measured in current dollars, are reflected below (in thousands).

(In thousands)	2013			2014			2015			2016			2017			Thereafter			Total
Estimated costs – current dollars	$	5,012		$	2,470		$	1,437		$	950		$	752		$	11,860		$	22,481
Estimated insurance proceeds		(126	)		(173	)		(159	)		(173	)		(159	)		(1,743	)		(2,533	)
Net anticipated costs	$	4,886		$	2,297		$	1,278		$	777		$	593		$	10,117		$	19,948
Effect of inflation																				6,839
Effect of discounting																				(6,917	)
Balance as of November 24, 2012																			$	19,870

Estimated insurance proceeds are primarily received from an annuity received as part of a legal settlement with an insurance company. Annual proceeds of approximately $0.3 million are deposited into an escrow account which funds remediation and monitoring costs for three sites related to former operations in Williamstown, Vermont. 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 24, 2012, 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 $3.2 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 the Nuclear Regulatory Commission (“NRC”), or, in certain cases, by the applicable state agency, and are subject to regulation by federal, state and local 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 litigation related to charges for certain ancillary services on invoices, personal injury claims, customer contract matters, employment claims and environmental matters as described above.  While it is impossible 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 accounting principles generally accepted in the United States.  It is possible, however, that future financial position or results of operations for any particular 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.

In addition, on December 31, 2012, the Company received a letter from counsel for New England Compounding Center (“NECC”) demanding, among other things, that the Company indemnify NECC regarding claims made against NECC, including those related to NECC’s highly-publicized compounding and sale of tainted methylprednisolone acetate.  This demand relates to the limited, once-a-month cleaning services the Company provided to portions of NECC’s cleanroom facilities.  Based on its preliminary review of this matter, the Company believes that NECC’s claims are without merit.  The Company has notified its insurer of this claim.  Based on the information currently available, the Company is unable to reasonably assess the ultimate outcome of this matter or an estimate or range of estimates of any potential losses.

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Long-term Debt

3 Months Ended

Nov. 24, 2012

Long-term Debt [Abstract]

Long-term Debt

10. Long-term Debt

On May 5, 2011, the Company entered into a $250.0 million unsecured revolving credit agreement (the "Credit Agreement") with a syndicate of banks, which matures on May 4, 2016.  Under the 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 Credit Agreement.  The Company tests its compliance with these financial covenants on a fiscal quarterly basis. At November 24, 2012, the interest rates applicable to the Company's borrowings under the Credit Agreement would be calculated as LIBOR plus 100 basis points at the time of the respective borrowing.  As of November 24, 2012, the Company had no outstanding borrowings, letters of credit amounting to $43.7 million and $206.3 million available for borrowing under the Credit Agreement.

On September 14, 2006, the Company issued $100.0 million of floating rates notes ("Floating Rate Notes") pursuant to a Note Purchase Agreement ("2006 Note Agreement").  The Floating Rate Notes mature on September 14, 2013, bear interest at LIBOR plus 50 basis points and may be repaid at face value two years from the date of issuance.

As of November 24, 2012, the Company was in compliance with all covenants under the Credit Agreement and the 2006 Note Agreement.

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Commitments and Contingencies (Tables)

3 Months Ended

Nov. 24, 2012

Commitments and Contingencies [Abstract]

Changes to environmental liabilities

The changes to the Company's environmental liabilities for the thirteen weeks ended November 24, 2012 are as follows (in thousands):

	November 24, 2012
Beginning balance as of August 25, 2012	$	20,020
Costs incurred for which reserves have been provided		(247	)
Insurance proceeds received		33
Interest accretion		136
Changes in discount rates		(72	)
Balance as of November 24, 2012	$	19,870

Anticipated payments and insurance proceeds of identified environmental remediation liabilities

Anticipated payments and insurance proceeds of currently identified environmental remediation liabilities as of November 24, 2012, for the next five fiscal years and thereafter, as measured in current dollars, are reflected below (in thousands).

(In thousands)	2013			2014			2015			2016			2017			Thereafter			Total
Estimated costs - current dollars	$	5,012		$	2,470		$	1,437		$	950		$	752		$	11,860		$	22,481
Estimated insurance proceeds		(126	)		(173	)		(159	)		(173	)		(159	)		(1,743	)		(2,533	)
Net anticipated costs	$	4,886		$	2,297		$	1,278		$	777		$	593		$	10,117		$	19,948
Effect of inflation																				6,839
Effect of discounting																				(6,917	)
Balance as of November 24, 2012																			$	19,870

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Net Income Per Share, Schedule of Earnings Per Share, Diluted, Two Class Method (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Nov. 24, 2012	Nov. 26, 2011
Common Class A [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net Income	$ 24,191	$ 20,258
Earning per share - basic (in amounts per share)	$ 1.62	$ 1.37
Common Stock options (in shares)	121,000	78,000
Undistributed earnings allocated to unvested participating shares	531	463
Undistributed earnings reallocated to unvested participating shares	(503)	(439)
Diluted EPS - Common Stock	30,244	25,350
Diluted EPS - Common Stock (in dollars per share)	$ 1.54	$ 1.30
Common stock excluded from the calculation of diluted earnings per share (in shares)	0	18,014
Diluted EPS - Common Stock (in shares)	19,693,000	19,557,000
Common Class B [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net Income	$ 6,025	$ 5,068
Earning per share - basic (in amounts per share)	$ 1.30	$ 1.09
Common Stock options (in shares)	4,647,000	4,641,000

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Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	Nov. 24, 2012	Aug. 25, 2012
Current Assets:
Receivable reserves	$ 7,318	$ 5,152
Shareholders' equity:
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common Class A [Member]
Shareholders' equity:
Common stock, par value (in dollars per shares)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, issued (in shares)	15,084,869	15,064,069
Common Stock, shares outstanding (in shares)	15,084,869	15,064,069
Common Class B [Member]
Shareholders' equity:
Common stock, par value (in dollars per shares)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, issued (in shares)	4,885,277	4,885,277
Common Stock, shares outstanding (in shares)	4,885,277	4,885,277

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Fair Value Measurements

3 Months Ended

Nov. 24, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

4. Fair Value Measurements

US GAAP establishes a framework for measuring fair value and establishes disclosure requirements about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The fair value hierarchy prescribed under US GAAP contains three levels as follows:

  Level 1 -   Quoted prices in active markets for identical assets or liabilities.

  Level 2 -   Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

  Level 3 -   Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

All financial assets or liabilities that are measured at fair value on a recurring basis (at least annually) have been segregated into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date.  The assets or liabilities measured at fair value on a recurring basis are summarized in the table below (in thousands):

	As of November 24, 2012
	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents	$	35,106	$	-	$	-	$	35,106
Total	$	35,106	$	-	$	-	$	35,106

The Company's cash equivalents listed above represent money market securities and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The Company does not adjust the quoted market price for such financial instruments.

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Asset Retirement Obligations (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Nov. 24, 2012	Nov. 26, 2011
Asset Retirement Obligations [Abstract]
Range of years discount for estimated future costs to decommission its nuclear laundry facilities, minimum years (in years)	1Y
Range of years discount for estimated future costs to decommission its nuclear laundry facilities, maximum years (in years)	32Y
Rollforward of asset retirement liabilities [Abstract]
Beginning balance	$ 10,120
Accretion expense	166	158
Ending balance	$ 10,286

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Asset Retirement Obligations (Tables)

3 Months Ended

Nov. 24, 2012

Asset Retirement Obligations [Abstract]

Reconciliation of asset retirement liabilities

A reconciliation of the Company's asset retirement liability is as follows (in thousands):

	November 24, 2012
Beginning balance as of August 25, 2012	$	10,120
Accretion expense		166
Ending balance as of November 24, 2012	$	10,286