Note 8 - Goodwill and Other Intangible Assets

12 Months Ended

Aug. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

8. Goodwill and Other Intangible Assets

As discussed in Note 2, Acquisitions, 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 following details the changes in the Company’s intangible assets and goodwill related to the Company’s acquisitions as well as its asset purchases for the years ended August 31, 2013 and August 25, 2012 as well as the respective periods over which the assets will be amortized (in thousands, except weighted average life in years). These amounts include additional payments associated with prior year acquisitions as well as changes to acquisition purchase allocations that had not been finalized as of the end of the prior fiscal year:

Year ended	August 31, 2013		Weighted Average Life in Years		August 25, 2012		Weighted Average Life in Years
Goodwill	$	14,448	-		$	29	-
Customer contracts		8,146		15.0		402		11.6
Other intangible assets		732		5.0		25		13.8
Total intangible assets and goodwill acquired	$	23,326			$	456

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 the years ended August 31, 2013, August 25, 2012 or August 27, 2011.

The changes in the carrying amount of goodwill are as follows (in thousands):

Balance as of August 27, 2011	$	288,249
Goodwill recorded during the period		29
Other		(141	)
Balance as of August 25, 2012	$	288,137
Goodwill recorded during the period		14,448
Other		(222	)
Balance as of August 31, 2013	$	302,363

As of August 31, 2013, the Company has allocated $297.7 million, $4.1 million and $0.6 million of goodwill to its US and Canadian Rental and Cleaning, Specialty Garments and First Aid segments, respectively.

Intangible assets, net in the Company’s accompanying Consolidated Balance Sheets are as follows (in thousands):

	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
August 31, 2013
Customer contracts	$	152,672	$	105,275	$	47,397
Other intangible assets		28,517		26,570		1,947
	$	181,189	$	131,845	$	49,344
August 25, 2012
Customer contracts	$	144,842	$	96,262	$	48,580
Other intangible assets		27,910		25,959		1,951
	$	172,752	$	122,221	$	50,531

Estimated amortization expense for the five fiscal years subsequent to August 31, 2013 and thereafter, based on intangible assets, net as of August 31, 2013 is as follows (in thousands):

2014	$	8,733
2015		8,040
2016		7,423
2017		6,764
2018		6,262
Thereafter		12,122
	$	49,344