Discontinued Operations

3 Months Ended

Aug. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

Effective August 31, 2014, Cintas' document imaging and document retention services business is classified as discontinued operations. Strategic opportunities for the business are being evaluated, and the Company does not expect to operate the business long-term. The carrying value of the document imaging and document retention services business has been evaluated and no adjustments to the value were deemed necessary. The business was previously included in the Document Management Services operating segment. In accordance with the applicable accounting guidance for the disposal of long-lived assets, the results of the document imaging and document retention services business have been excluded from both continuing operations and segment results for all periods presented. The balance sheet position for the document imaging and document retention services business as of August 31, 2014 is presented as assets and liabilities held for sale in the Consolidated Condensed Balance Sheet. As allowed under applicable accounting guidance, the May 31, 2014 balance sheet amounts for the document imaging and document retention services business remain in their natural classifications.

Following is selected financial information included in net income from discontinued operations for the document imaging and document retention services business:

	Three Months Ended
In thousands	August 31, 2014		August 31, 2013(1)
Revenue	$	20,785	$	20,097
Income from discontinued operations	576		458
Income tax expense on discontinued operations	259		102
Net income from discontinued operations	$	317	$	356

⁽¹⁾ Results for the three months ended August 31, 2013 were previously included in continuing operations.

The components of assets and liabilities as of August 31, 2014 of the document imaging and document retention services business held for sale were as follows:

In thousands
Accounts receivable	$	10,818
Prepaid expenses and other current assets	4,449
Property and equipment, at cost, net	48,480
Goodwill	77,200
Service contracts, net	9,897
Other assets, net	419
Total assets held for sale	$	151,263
Accounts payable	$	6,652
Accrued compensation and related liabilities	430
Accrued liabilities	1,250
Non-current deferred income taxes	6,697
Other liabilities, net	142
Total liabilities held for sale	$	15,171