UNIFIRST CORP Goodwill & Intangibles Disclosure
8. Goodwill and Other Intangible Assets
When the Company acquires a business, the amount assigned to the tangible assets and liabilities and intangible assets acquired is based on their respective fair values determined as of the acquisition date. The excess of the purchase price over the tangible assets and liabilities and intangible assets is recorded as goodwill. The Company does not amortize goodwill, but it is reviewed annually or more frequently if certain indicators arise, for impairment. There were no impairment losses related to goodwill or intangible assets during fiscal 2025, 2024 and 2023.
The changes in the carrying amount of goodwill are as follows (in thousands):
Balance as of August 26, 2023 |
|
$ |
647,900 |
|
Purchase price adjustments recorded during the period |
|
|
900 |
|
Other |
|
|
50 |
|
Balance as of August 31, 2024 |
|
$ |
648,850 |
|
Goodwill recorded during the period |
|
|
8,935 |
|
Other |
|
|
(37 |
) |
Balance as of August 30, 2025 |
|
$ |
657,748 |
|
As of August 30, 2025, the Company has allocated $645.8 million, $8.7 million and $3.2 million of goodwill to its Uniform & Facility Service Solutions, First Aid & Safety Solutions and Other segments, respectively.
Intangible assets, net in the Company’s Consolidated Balance Sheets as of August 30, 2025 and August 31, 2024 are as follows (in thousands):
|
|
Gross |
|
|
Accumulated |
|
|
Net |
|
|||
August 30, 2025 |
|
|
|
|
|
|
|
|
|
|||
Customer contracts |
|
$ |
318,148 |
|
|
$ |
243,364 |
|
|
$ |
74,784 |
|
Software |
|
|
81,659 |
|
|
|
52,355 |
|
|
|
29,304 |
|
Other intangible assets |
|
|
40,003 |
|
|
|
38,262 |
|
|
|
1,741 |
|
|
|
$ |
439,810 |
|
|
$ |
333,981 |
|
|
$ |
105,829 |
|
August 31, 2024 |
|
|
|
|
|
|
|
|
|
|||
Customer contracts |
|
$ |
314,446 |
|
|
$ |
228,456 |
|
|
$ |
85,990 |
|
Software |
|
|
81,482 |
|
|
|
51,023 |
|
|
|
30,459 |
|
Other intangible assets |
|
|
39,826 |
|
|
|
36,276 |
|
|
|
3,550 |
|
|
|
$ |
435,754 |
|
|
$ |
315,755 |
|
|
$ |
119,999 |
|
Estimated amortization expense for the five fiscal years subsequent to August 30, 2025 and thereafter, based on intangible assets, net as of August 30, 2025 are as follows (in thousands):
2026 |
|
$ |
20,141 |
|
2027 |
|
|
17,008 |
|
2028 |
|
|
15,032 |
|
2029 |
|
|
12,693 |
|
2030 |
|
|
11,300 |
|
Thereafter |
|
|
29,655 |
|
Total estimated amortization expense |
|
$ |
105,829 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Oct 29, 2025 | Showing above |
| 2024 | Nov 14, 2024 | |
| 2023 | Oct 26, 2023 | |
| 2022 | Oct 26, 2022 | |
| 2021 | Oct 27, 2021 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.