Supplemental Guarantor Information

9 Months Ended

Feb. 28, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Supplemental Guarantor Information

Supplemental Guarantor Information

Cintas Corporation No. 2 (Corp. 2) is the indirectly, wholly-owned principal operating subsidiary of Cintas.  Corp. 2 is the issuer of the $1,300.0 million aggregate principal amount of long-term senior notes, which are unconditionally guaranteed, jointly and severally, by Cintas Corporation and its wholly-owned, direct and indirect domestic subsidiaries.

As allowed by SEC rules, the following condensed consolidating financial statements are provided as an alternative to filing separate financial statements of the guarantors.  Each of the subsidiaries presented in the following condensed consolidating financial statements has been fully consolidated in Cintas’ consolidated financial statements.  The following condensed consolidating financial statements should be read in conjunction with the consolidated financial statements of Cintas and notes thereto of which this note is an integral part.

Condensed consolidating financial statements for Cintas, Corp. 2, the subsidiary guarantors and non-guarantors are presented on the following pages: 

Condensed Consolidating Income Statement

Three Months Ended February 28, 2013

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Revenue:
Rental uniforms and ancillary products	$	—	$	565,731		$	151,595		$	55,906		$	(24,345	)	$	748,887
Other services	—		394,957			9,679			31,950			(109,799		)	326,787
Equity in net income of affiliates	74,705		—			—			—			(74,705		)	—
	74,705		960,688			161,274			87,856			(208,849		)	1,075,674
Costs and expenses (income):
Cost of rental uniforms and ancillary products	—		367,447			85,481			39,108			(57,227		)	434,809
Cost of other services	—		247,942			2,733			19,605			(71,356		)	198,924
Selling and administrative expenses	—		295,643			(4,592		)	24,972			(7,105		)	308,918
Operating income	74,705		49,656			77,652			4,171			(73,161		)	133,023
Interest income	—		(2		)	(86		)	(44		)	—			(132		)
Interest expense (income)	—		16,480			(175		)	(3		)	—			16,302
Income before income taxes	74,705		33,178			77,913			4,218			(73,161		)	116,853
Income taxes	—		9,981			23,901			8,272			(6		)	42,148
Net income (loss)	$	74,705	$	23,197		$	54,012		$	(4,054	)	$	(73,155	)	$	74,705

Condensed Consolidating Income Statement

Three Months Ended February 29, 2012

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Revenue:
Rental uniforms and ancillary products	$	—	$	550,167		$	141,867		$	52,652		$	(23,674	)	$	721,012
Other services	—		361,849			8,504			27,785			(107,038		)	291,100
Equity in net income of affiliates	76,035		—			—			—			(76,035		)	—
	76,035		912,016			150,371			80,437			(206,747		)	1,012,112
Costs and expenses (income):
Cost of rental uniforms and ancillary products	—		350,615			80,270			35,984			(56,911		)	409,958
Cost of other services	—		240,568			(5,902		)	17,532			(75,947		)	176,251
Selling and administrative expenses	—		286,257			(17,100		)	22,926			(3,716		)	288,367
Operating income	76,035		34,576			93,103			3,995			(70,173		)	137,536
Interest income	—		(54		)	(280		)	(202		)	163			(373		)
Interest expense (income)	—		17,559			(333		)	(7		)	—			17,219
Income before income taxes	76,035		17,071			93,716			4,204			(70,336		)	120,690
Income taxes	—		7,114			36,109			1,438			(6		)	44,655
Net income	$	76,035	$	9,957		$	57,607		$	2,766		$	(70,330	)	$	76,035

Condensed Consolidating Income Statement

Nine Months Ended February 28, 2013

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Revenue:
Rental uniforms and ancillary products	$	—	$	1,717,290		$	457,183		$	165,060		$	(79,964	)	$	2,259,569
Other services	—		1,151,628			31,188			90,292			(345,292		)	927,816
Equity in net income of affiliates	229,465		—			—			—			(229,465		)	—
	229,465		2,868,918			488,371			255,352			(654,721		)	3,187,385
Costs and expenses (income):
Cost of rental uniforms and ancillary products	—		1,099,289			269,837			114,651			(181,918		)	1,301,859
Cost of other services	—		740,797			(6,633		)	55,877			(224,367		)	565,674
Selling and administrative expenses	—		866,546			(15,754		)	72,978			(15,258		)	908,512
Operating income	229,465		162,286			240,921			11,846			(233,178		)	411,340
Interest income	—		(33		)	(247		)	(78		)	—			(358		)
Interest expense (income)	—		49,323			(126		)	(3		)	—			49,194
Income before income taxes	229,465		112,996			241,294			11,927			(233,178		)	362,504
Income taxes	—		39,236			83,784			10,042			(23		)	133,039
Net income	$	229,465	$	73,760		$	157,510		$	1,885		$	(233,155	)	$	229,465

Condensed Consolidating Income Statement

Nine Months Ended February 29, 2012

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Revenue:
Rental uniforms and ancillary products	$	—	$	1,662,058		$	425,455		$	156,511		$	(80,800	)	$	2,163,224
Other services	—		1,087,507			40,176			86,425			(328,914		)	885,194
Equity in net income of affiliates	219,023		—			—			—			(219,023		)	—
	219,023		2,749,565			465,631			242,936			(628,737		)	3,048,418
Costs and expenses (income):
Cost of rental uniforms and ancillary products	—		1,053,496			248,561			107,163			(185,609		)	1,223,611
Cost of other services	—		698,073			(4,168		)	53,662			(217,500		)	530,067
Selling and administrative expenses	—		828,080			6,297			71,391			(9,823		)	895,945
Operating income	219,023		169,916			214,941			10,720			(215,805		)	398,795
Interest income	—		(211		)	(518		)	(575		)	163			(1,141		)
Interest expense (income)	—		53,148			(1,214		)	347			—			52,281
Income before income taxes	219,023		116,979			216,673			10,948			(215,968		)	347,655
Income taxes	—		44,011			81,518			3,121			(18		)	128,632
Net income	$	219,023	$	72,968		$	135,155		$	7,827		$	(215,950	)	$	219,023

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended February 28, 2013

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors		Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Net income (loss)	$	74,705	$	23,197		$	54,012	$	(4,054	)	$	(73,155	)	$	74,705
Other comprehensive income (loss), net of tax:
Foreign currency translation            adjustments	—		(7		)	—		(8,166		)	—			(8,173		)
Change in fair value of derivatives	—		(36		)	—		—			—			(36		)
Amortization of interest rate lock           agreements	—		488			—		—			—			488
Change in fair value of available-for-           sale securities	—		—			4		(3		)	—			1
Other comprehensive income (loss)	—		445			4		(8,169		)	—			(7,720		)
Comprehensive income (loss)	$	74,705	$	23,642		$	54,016	$	(12,223	)	$	(73,155	)	$	66,985

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended February 29, 2012

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors		Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Net income	$	76,035	$	9,957		$	57,607	$	2,766		$	(70,330	)	$	76,035
Other comprehensive income (loss), net of tax:
Foreign currency translation            adjustments	—		20			—		11,183			—			11,203
Change in fair value of derivatives	—		(27		)	—		331			—			304
Amortization of interest rate lock           agreements	—		377			—		—			—			377
Change in fair value of available-for-           sale securities	—		—			—		(29		)	—			(29		)
Other comprehensive income	—		370			—		11,485			—			11,855
Comprehensive income	$	76,035	$	10,327		$	57,607	$	14,251		$	(70,330	)	$	87,890

Condensed Consolidating Statement of Comprehensive Income

Nine Months Ended February 28, 2013

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Net income	$	229,465	$	73,760		$	157,510		$	1,885		$	(233,155	)	$	229,465
Other comprehensive income (loss), net of tax:
Foreign currency translation            adjustments	—		—			—			519			—			519
Change in fair value of derivatives	—		(187		)	—			—			—			(187		)
Amortization of interest rate lock           agreements	—		1,464			—			—			—			1,464
Change in fair value of available-for-           sale securities	—		—			(3		)	(8		)	—			(11		)
Other comprehensive income (loss)	—		1,277			(3		)	511			—			1,785
Comprehensive income	$	229,465	$	75,037		$	157,507		$	2,396		$	(233,155	)	$	231,250

Condensed Consolidating Statement of Comprehensive Income

Nine Months Ended February 29, 2012

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors		Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Net income	$	219,023	$	72,968		$	135,155	$	7,827		$	(215,950	)	$	219,023
Other comprehensive income (loss), net of tax:
Foreign currency translation            adjustments	—		(15		)	—		(9,328		)	—			(9,343		)
Change in fair value of derivatives	—		180			—		305			—			485
Amortization of interest rate lock           agreements	—		1,131			—		—			—			1,131
Change in fair value of available-for-           sale securities	—		—			—		(4		)	—			(4		)
Other comprehensive income (loss)	—		1,296			—		(9,027		)	—			(7,731		)
Comprehensive income (loss)	$	219,023	$	74,264		$	135,155	$	(1,200	)	$	(215,950	)	$	211,292

Condensed Consolidating Balance Sheet

As of February 28, 2013

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors		Eliminations			Cintas Corporation Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		$	46,596		$	139,548		$	31,326	$	—		$	217,470
Marketable securities	—			—			5,811			22,405		—			28,216
Accounts receivable, net	—			344,563			107,460			43,101		—			495,124
Inventories, net	—			207,720			24,814			11,123		3,300			246,957
Uniforms and other rental items in service	—			351,693			110,310			37,568		(17,995		)	481,576
Income taxes, current	—			(10,466		)	17,757			8,040		—			15,331
Prepaid expenses and other	—			7,334			14,539			2,905		—			24,778
Total current assets	—			947,440			420,239			156,468		(14,695		)	1,509,452
Property and equipment, at cost, net	—			623,384			260,463			92,997		—			976,844
Goodwill	—			—			1,451,520			68,467		—			1,519,987
Service contracts, net	—			89,175			197			4,201		—			93,573
Other assets, net	1,626,551			1,628,389			2,665,764			764,474		(6,563,735		)	121,443
	$	1,626,551		$	3,288,388		$	4,798,183		$	1,086,607	$	(6,578,430	)	$	4,221,299
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	(465,247	)	$	(569,422	)	$	1,082,127		$	23,587	$	38,019		$	109,064
Accrued compensation and related liabilities	—			64,253			20,212			6,068		—			90,533
Accrued liabilities	—			45,861			180,466			12,135		—			238,462
Deferred tax (asset) liability	—			(538		)	58,997			3,560		—			62,019
Long-term debt due within one year	—			923			(249		)	—		—			674
Total current liabilities	(465,247		)	(458,923		)	1,341,553			45,350		38,019			500,752
Long-term liabilities:
Long-term debt due after one year	—			1,318,061			(10,253		)	848		—			1,308,656
Deferred income taxes	—			(6		)	203,389			6,072		—			209,455
Accrued liabilities	—			—			71,334			856		—			72,190
Total long-term liabilities	—			1,318,055			264,470			7,776		—			1,590,301
Total shareholders’ equity	2,091,798			2,429,256			3,192,160			1,033,481		(6,616,449		)	2,130,246
	$	1,626,551		$	3,288,388		$	4,798,183		$	1,086,607	$	(6,578,430	)	$	4,221,299

Condensed Consolidating Balance Sheet

As of May 31, 2012

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors		Eliminations			Cintas Corporation Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		$	58,737		$	229,287		$	51,801	$	—		$	339,825
Accounts receivable, net	—			327,442			81,243			42,176		—			450,861
Inventories, net	—			210,283			20,258			10,781		9,883			251,205
Uniforms and other rental items in service	—			337,298			101,435			35,051		(20,999		)	452,785
Income taxes, current	—			5,296			3,642			13,250		—			22,188
Prepaid expenses and other	—			7,905			12,770			4,029		—			24,704
Total current assets	—			946,961			448,635			157,088		(11,116		)	1,541,568
Property and equipment, at cost, net	—			600,565			259,744			83,996		—			944,305
Goodwill	—			—			1,419,535			65,840		—			1,485,375
Service contracts, net	—			71,337			326			5,159		—			76,822
Other assets, net	1,637,225			1,628,516			2,467,198			759,439		(6,379,542		)	112,836
	$	1,637,225		$	3,247,379		$	4,595,438		$	1,071,522	$	(6,390,658	)	$	4,160,906
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	(465,247	)	$	(475,624	)	$	978,932		$	18,760	$	38,019		$	94,840
Accrued compensation and related liabilities	—			63,797			21,619			5,798		—			91,214
Accrued liabilities	—			67,651			176,220			13,557		(786		)	256,642
Deferred tax (asset) liability	—			(538		)	(87		)	3,184		—			2,559
Long-term debt due within one year	—			225,866			(230		)	—		—			225,636
Total current liabilities	(465,247		)	(118,848		)	1,176,454			41,299		37,233			670,891
Long-term liabilities:
Long-term debt due after one year	—			1,068,820			(11,288		)	848		786			1,059,166
Deferred income taxes	—			(6		)	199,404			5,183		—			204,581
Accrued liabilities	—			—			86,406			727		—			87,133
Total long-term liabilities	—			1,068,814			274,522			6,758		786			1,350,880
Total shareholders’ equity	2,102,472			2,297,413			3,144,462			1,023,465		(6,428,677		)	2,139,135
	$	1,637,225		$	3,247,379		$	4,595,438		$	1,071,522	$	(6,390,658	)	$	4,160,906

Condensed Consolidating Statement of Cash Flows

Nine Months Ended February 28, 2013

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Cash flows from operating activities:
Net income	$	229,465		$	73,760		$	157,510		$	1,885		$	(233,155	)	$	229,465
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	—			73,048			40,025			10,169			—			123,242
Amortization of intangible assets	—			15,681			158			2,045			—			17,884
Stock-based compensation	16,660			—			—			—			—			16,660
Deferred income taxes	—			(1		)	63,063			737			—			63,799
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(14,247		)	(26,217		)	(938		)	—			(41,402		)
Inventories, net	—			2,563			(4,556		)	(153		)	6,583			4,437
Uniforms and other rental items in service	—			(14,395		)	(8,876		)	(2,528		)	(3,004		)	(28,803		)
Prepaid expenses and other	—			623			(1,769		)	1,155			—			9
Accounts payable	—			(61,702		)	70,654			4,523			—			13,475
Accrued compensation and related liabilities	—			456			(1,407		)	271			—			(680		)
Accrued liabilities	—			(25,003		)	(10,825		)	(640		)	786			(35,682		)
Income taxes payable	—			15,762			(14,114		)	4,291			—			5,939
Net cash provided by operating activities	246,125			66,545			263,646			20,817			(228,790		)	368,343
Cash flows from investing activities:
Capital expenditures	—			(92,342		)	(40,817		)	(18,640		)	—			(151,799		)
Proceeds from redemption of marketable securities	—			—			10,810			86,841			—			97,651
Purchase of marketable securities and investments	—			(865		)	(32,340		)	(109,870		)	7,677			(135,398		)
Acquisitions of businesses, net of cash acquired	—			(62,693		)	—			(1,932		)	—			(64,625		)
Other	10,653			57,394			(298,624		)	8,016			221,899			(662		)
Net cash provided by (used in) investing activities	10,653			(98,506		)	(360,971		)	(35,585		)	229,576			(254,833		)
Cash flows from financing activities:
Proceeds from issuance of debt	—			250,000			—			—			—			250,000
Repayment of debt	—			(225,702		)	1,016			—			(786		)	(225,472		)
Exercise of stock-based compensation awards	7,156			—			—			—			—			7,156
Dividends paid	(79,723		)	—			—			(21		)	—			(79,744		)
Repurchase of common stock	(187,076		)	—			—			—			—			(187,076		)
Other	2,865			(4,477		)	—			227			—			(1,385		)
Net cash (used in) provided by financing activities	(256,778		)	19,821			1,016			206			(786		)	(236,521		)
Effect of exchange rate changes on cash and cash equivalents	—			(1		)	6,570			(5,913		)	—			656
Net decrease in cash and cash equivalents	—			(12,141		)	(89,739		)	(20,475		)	—			(122,355		)
Cash and cash equivalents at beginning of period	—			58,737			229,287			51,801			—			339,825
Cash and cash equivalents at end of period	$	—		$	46,596		$	139,548		$	31,326		$	—		$	217,470

Condensed Consolidating Statement of Cash Flows

Nine Months Ended February 29, 2012

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Cash flows from operating activities:
Net income	$	219,023		$	72,968		$	135,155		$	7,827		$	(215,950	)	$	219,023
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	—			70,252			35,841			9,473			—			115,566
Amortization of intangible assets	—			25,474			308			3,738			—			29,520
Stock-based compensation	15,023			—			—			—			—			15,023
Deferred income taxes	—			—			(710		)	(285		)	—			(995		)
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(6,542		)	(3,844		)	(1,374		)	—			(11,760		)
Inventories, net	—			(29,357		)	4,975			399			(2,975		)	(26,958		)
Uniforms and other rental items in service	—			(25,877		)	(13,403		)	(1,057		)	(98		)	(40,435		)
Prepaid expenses and other	—			(1,698		)	(5,316		)	1,037			—			(5,977		)
Accounts payable	—			(61,326		)	45,955			21,743			—			6,372
Accrued compensation and related liabilities	—			3,185			(698		)	764			—			3,251
Accrued liabilities	—			(11,899		)	29,797			(9,375		)	804			9,327
Income taxes payable	—			9,603			(16,827		)	2,981			—			(4,243		)
Net cash provided by operating activities	234,046			44,783			211,233			35,871			(218,219		)	307,714
Cash flows from investing activities:
Capital expenditures	—			(80,939		)	(24,837		)	(11,940		)	—			(117,716		)
Proceeds from redemption of marketable securities	—			—			—			519,955			—			519,955
Purchase of marketable securities and investments	—			(2,552		)	(35,293		)	(568,963		)	30,404			(576,404		)
Acquisitions of businesses, net of cash acquired	—			(15,632		)	(65		)	(5,185		)	—			(20,882		)
Other	98,271			49,778			(334,530		)	(285		)	188,619			1,853
Net cash provided by (used in) investing activities	98,271			(49,345		)	(394,725		)	(66,418		)	219,023			(193,194		)
Cash flows from financing activities:
Repayment of debt	—			(736		)	324			—			(804		)	(1,216		)
Exercise of stock-based compensation awards	356			—			—			—			—			356
Dividends paid	(70,800		)	—			—			(20		)	—			(70,820		)
Repurchase of common stock	(262,682		)	—			—			—			—			(262,682		)
Other	809			1,131			—			(550		)	—			1,390
Net cash (used in) provided by financing activities	(332,317		)	395			324			(570		)	(804		)	(332,972		)
Effect of exchange rate changes on cash and cash equivalents	—			(73		)	(2		)	(1,596		)	—			(1,671		)
Net decrease in cash and cash equivalents	—			(4,240		)	(183,170		)	(32,713		)	—			(220,123		)
Cash and cash equivalents at beginning of period	—			54,957			313,283			69,866			—			438,106
Cash and cash equivalents at end of period	$	—		$	50,717		$	130,113		$	37,153		$	—		$	217,983