Operating Segment Information

12 Months Ended

May. 31, 2015

Segment Reporting [Abstract]

Operating Segment Information

Operating Segment Information

Cintas classifies its businesses into three operating segments based on the types of products and services provided. The Rental Uniforms and Ancillary Products operating segment consists of the rental and servicing of uniforms and other garments including flame resistant clothing, mats, mops and shop towels and other ancillary items.  In addition to these rental items, restroom cleaning services and supplies and carpet and tile cleaning services are also provided within this operating segment. The Uniform Direct Sales operating segment consists of the direct sale of uniforms and related items. The First Aid, Safety and Fire Protection Services operating segment consists of first aid, safety and fire protection products and services.

Prior to August 31, 2014, Cintas classified its business into four operating segments. The Document Management Services operating segment is no longer considered an operating segment for fiscal 2015 and beyond. This operating segment consisted of the Shredding and Storage businesses. On April 30, 2014, Cintas completed the Shredding Transaction. Shredding is reported in Corporate for fiscal years ended 2014 and 2013. Additionally, effective August 31, 2014, Storage is classified as discontinued operations. Storage has been excluded from segment results for all periods presented. Please see Note 17 entitled Discontinued Operations for additional information.

Cintas evaluates the performance of each operating segment based on several factors of which the primary financial measures are operating segment revenue and income before income taxes. The accounting policies of the operating segments are the same as those described in Note 1 entitled Significant Accounting Policies. Information related to the operations of Cintas' operating segments is set forth below:

(In thousands)	Rental Uniforms & Ancillary Products		Uniform Direct Sales		First Aid, Safety & Fire Protection		Corporate(1)			Total
May 31, 2015
Revenue	$	3,454,956	$	453,653	$	568,277	$	—		$	4,476,886
Gross margin	$	1,541,490	$	129,446	$	250,401	$	—		$	1,921,337
Selling and admin. expenses	948,455		85,317		191,158		—			1,224,930
Gain on deconsolidation of Shredding	—		—		—		4,952			4,952
Gain on sale of stock of an equity    method investment	—		—		—		21,739			21,739
Interest expense, net	—		—		—		64,822			64,822
Income (loss) before income taxes	$	593,035	$	44,129	$	59,243	$	(38,131	)	$	658,276
Depreciation and amortization	$	121,743	$	8,391	$	22,461	$	—		$	152,595
Capital expenditures	$	183,459	$	9,495	$	23,864	$	902		$	217,720
Total assets	$	2,856,716	$	123,044	$	436,651	$	776,049		$	4,192,460
May 31, 2014
Revenue	$	3,223,930	$	455,485	$	514,429	$	275,721		$	4,469,565
Gross margin	$	1,394,503	$	130,018	$	225,238	$	123,895		$	1,873,654
Selling and admin. expenses	887,444		83,309		176,286		117,797			1,264,836
Gain on deconsolidation of Shredding, net of impairment charges and other transaction costs	—		—		—		61,817			61,817
Interest expense, net	—		—		—		65,593			65,593
Income before income taxes	$	507,059	$	46,709	$	48,952	$	2,322		$	605,042
Depreciation and amortization	$	117,869	$	8,307	$	21,113	$	33,756		$	181,045
Capital expenditures	$	94,190	$	2,482	$	14,512	$	34,396		$	145,580
Total assets	$	2,875,014	$	142,033	$	422,015	$	1,023,390		$	4,462,452
May 31, 2013
Revenue	$	3,044,587	$	461,328	$	460,592	$	279,457		$	4,245,964
Gross margin	$	1,288,290	$	134,985	$	199,314	$	130,720		$	1,753,309
Selling and admin. expenses	835,249		81,739		156,232		114,111			1,187,331
Interest expense, net	—		—		—		65,303			65,303
Income (loss) before income taxes	$	453,041	$	53,246	$	43,082	$	(48,694	)	$	500,675
Depreciation and amortization	$	116,867	$	8,049	$	20,832	$	34,161		$	179,909
Capital expenditures	$	140,327	$	6,908	$	11,809	$	37,442		$	196,486
Total assets	$	2,830,941	$	152,551	$	398,614	$	963,526		$	4,345,632

⁽¹⁾ Corporate assets as of May 31, 2015 include the investment in the Shred-it Partnership. Corporate assets also include the real estate assets of Storage that were not included in the sale transactions. Corporate results and assets as of and for the fiscal year ended 2014 include the revenue ($275.7 million), loss before income taxes ($38.5 million) and assets ($344.3 million) of Shredding. Corporate results and assets as of and for the fiscal year ended 2013 include the revenue ($279.5 million), income before income taxes ($16.6 million) and assets ($456.3 million) of Shredding. Corporate assets as of May 31, 2014 and 2013 include the assets of Storage.