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Discontinued Operations
 12 Months Ended
May. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations
Effective August 31, 2014, Cintas' Storage was classified as discontinued operations. The business was previously included in the former Document Management Services operating segment. In accordance with the applicable accounting guidance for the disposal of long-lived assets, the results of Storage have been excluded from both continuing operations and segment results for all periods presented.
In the quarter ended November 30, 2014, Cintas sold Storage. Storage, excluding related real estate owned by Cintas, was sold in three separate transactions to three separate buyers. For the fiscal year ended May 31, 2015, cash proceeds received at the closing of each transaction or upon the settlement of contingencies totaled $158.4 million, net of cash contributed. Each transaction involved contingent consideration, and the Company has opportunities to receive additional proceeds if specified future events occur. Because of the uncertainty surrounding the future events, these amounts represent gain contingencies that have not been recorded. Certain real estate owned by Cintas is being leased by the buyers. These lease payments do not represent a material direct cash flow of the disposed Storage business and therefore do not impact the classification of Storage as a discontinued operation.
Following is selected financial information included in net income (loss) from discontinued operations for Storage:
(In thousands)
2015
 
2014
 
2013
 
 
 
 
 
 
Revenue
$
31,379

 
$
82,246

 
$
70,507

 
 
 
 
 
 
(Loss) income before income taxes
(3,712
)
 
815

 
(767
)
Income tax (benefit) expense
(3,232
)
 
658

 
377

Gain on sale of business
38,573

 
—

 
—

Income tax expense on gain
15,552

 
—

 
—

Net income (loss) from discontinued operations
$
22,541

 
$
157

 
$
(1,144
)

Certain real estate assets and related liabilities were not included in the Storage Transactions and are classified as held for sale as of May 31, 2015. As allowed under applicable accounting guidance, the May 31, 2014 balance sheet amounts for these assets and liabilities remain in their natural classifications.
On July 10, 2015, Cintas sold the remaining Storage assets classified as held for sale. Proceeds from the transaction were $24.4 million. It is anticipated that Cintas will recognize a gain of approximately $4.5 million before taxes.