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 $163.8 million aggregate principal amount of commercial paper and the $1,050.0 million aggregate principal amount of senior notes, which are unconditionally guaranteed, jointly and severally, by Cintas Corporation and certain 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. During fiscal 2017, the Company merged a legal entity previously included in subsidiary guarantors into Corp. 2. This restructuring has been reflected as of the beginning of the earliest period presented herein.

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 August 31, 2016

(In thousands)



	Cintas Corporation		Corp. 2		Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated

Revenue:
Uniform rental and facility services	$	—	$	837,274	$	149,148		$	57,663		$	(44,489	)	$	999,596
Other	—		410,248		968			18,875			(135,557		)	294,534
Equity in net income of affiliates	138,091		—		—			—			(138,091		)	—
	138,091		1,247,522		150,116			76,538			(318,137		)	1,294,130
Costs and expenses (income):
Cost of uniform rental and facility services	—		479,056		90,672			37,114			(65,910		)	540,932
Cost of other	—		280,024		(14,931		)	13,828			(109,497		)	169,424
Selling and administrative expenses	—		411,934		(50,734		)	20,265			(7,439		)	374,026
G&K Services, Inc. acquisition expenses	—		—		2,787			—			—			2,787
Operating income	138,091		76,508		122,322			5,331			(135,291		)	206,961

Interest income	—		—		(17		)	(48		)	—			(65		)
Interest expense (income)	—		14,827		(702		)	47			—			14,172

Income before income taxes	138,091		61,681		123,041			5,332			(135,291		)	192,854
Income taxes	—		17,810		35,526			1,453			(26		)	54,763

Net income from continuing operations	$	138,091	$	43,871	$	87,515		$	3,879		$	(135,265	)	$	138,091

Condensed Consolidating Income Statement

Three Months Ended August 31, 2015

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated

Revenue:
Uniform rental and facility services	$	—		$	787,169		$	136,425		$	54,012		$	(39,198	)	$	938,408
Other	—			372,611			1,293			14,811			(128,233		)	260,482
Equity in net income of affiliates	106,198			—			—			—			(106,198		)	—
	106,198			1,159,780			137,718			68,823			(273,629		)	1,198,890
Costs and expenses (income):
Cost of uniform rental and facility services	—			455,207			86,198			35,820			(58,722		)	518,503
Cost of other	—			258,990			(14,256		)	11,106			(99,597		)	156,243
Selling and administrative expenses	—			369,693			(41,472		)	17,880			(7,464		)	338,637
Operating income	106,198			75,890			107,248			4,017			(107,846		)	185,507

Interest income	—			—			(48		)	(71		)	—			(119		)
Interest expense (income)	—			16,375			38			(1		)	—			16,412

Income before income taxes	106,198			59,515			107,258			4,089			(107,846		)	169,214
Income taxes	—			22,382			39,403			1,256			(25		)	63,016
Income from continuing operations	106,198			37,133			67,855			2,833			(107,821		)	106,198

Loss from discontinued operations, net of tax	(6,017		)	(5,323		)	—			(694		)	6,017			(6,017		)

Net income	$	100,181		$	31,810		$	67,855		$	2,139		$	(101,804	)	$	100,181

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended August 31, 2016

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors		Non- Guarantors			Eliminations			Cintas Corporation Consolidated

Net income	$	138,091		$	43,871		$	87,515	$	3,879		$	(135,265	)	$	138,091

Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	115			—			—		115			(115		)	115
Change in fair value of derivatives	(12,037		)	(12,037		)	—		—			12,037			(12,037		)
Amortization of interest rate lock agreements	385			385			—		—			(385		)	385
Change in fair value of available-for-sale securities	(1		)	—			—		(1		)	1			(1		)

Other comprehensive (loss) income	(11,538		)	(11,652		)	—		114			11,538			(11,538		)

Comprehensive income	$	126,553		$	32,219		$	87,515	$	3,993		$	(123,727	)	$	126,553

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended August 31, 2015

(In thousands)



	Cintas Corporation		Corp. 2		Subsidiary Guarantors		Non- Guarantors			Eliminations			Cintas Corporation Consolidated

Net income	$	100,181	$	31,810	$	67,855	$	2,139		$	(101,804	)	$	100,181

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	—		—		—		(12,013		)	—			(12,013		)
Amortization of interest rate lock agreements	—		488		—		—			—			488
Change in fair value of available-for-sale securities	—		—		—		(8		)	—			(8		)

Other comprehensive income (loss)	—		488		—		(12,021		)	—			(11,533		)

Comprehensive income (loss)	$	100,181	$	32,298	$	67,855	$	(9,882	)	$	(101,804	)	$	88,648

Condensed Consolidating Balance Sheet

As of August 31, 2016

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors		Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		$	37,205		$	38,230	$	23,774		$	—		$	99,209
Marketable securities	—			—			—		64,558			—			64,558
Accounts receivable, net	—			452,028			98,129		36,215			—			586,372
Inventories, net	—			234,154			17,343		11,968			(1,309		)	262,156
Uniforms and other rental items in service	—			449,115			75,719		36,607			(19,317		)	542,124
Prepaid expenses and other current assets	—			15,512			23,698		1,119			—			40,329
Total current assets	—			1,188,014			253,119		174,241			(20,626		)	1,594,748

Property and equipment, at cost, net	—			632,073			324,484		76,603			—			1,033,160

Investments	321,083			1,774,464			917,468		955,196			(3,827,335		)	140,876
Goodwill	—			—			1,257,747		40,740			(112		)	1,298,375
Service contracts, net	—			79,143			9		5,640			—			84,792
Other assets, net	1,201,072			(460		)	3,545,468		9,022			(4,739,908		)	15,194
	$	1,522,155		$	3,673,234		$	6,298,295	$	1,261,442		$	(8,587,981	)	$	4,167,145

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	(465,247	)	$	(1,843,480	)	$	2,385,059	$	15,198		$	38,120		$	129,650
Accrued compensation and related liabilities	—			47,584			12,881		4,227			—			64,692
Accrued liabilities	—			64,603			235,678		13,607			—			313,888
Income taxes, current	—			4,797			34,446		(414		)	—			38,829
Debt due within one year	—			163,800			—		—			—			163,800
Total current liabilities	(465,247		)	(1,562,696		)	2,668,064		32,618			38,120			710,859

Long-term liabilities:
Debt due after one year	—			1,044,238			—		390			—			1,044,628
Deferred income taxes	—			(427		)	248,215		7,592			—			255,380
Accrued liabilities	—			38,827			129,065		984			—			168,876
Total long-term liabilities	—			1,082,638			377,280		8,966			—			1,468,884
Total shareholders’ equity	1,987,402			4,153,292			3,252,951		1,219,858			(8,626,101		)	1,987,402
	$	1,522,155		$	3,673,234		$	6,298,295	$	1,261,442		$	(8,587,981	)	$	4,167,145

Condensed Consolidating Balance Sheet

As of May 31, 2016

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors		Non- Guarantors		Eliminations			Cintas Corporation Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		$	57,893		$	55,392	$	26,072	$	—		$	139,357
Marketable securities	—			—			—		70,405		—			70,405
Accounts receivable, net	—			430,335			97,516		35,327		—			563,178
Inventories, net	—			222,823			19,149		11,235		(3,845		)	249,362
Uniforms and other rental items in service	—			450,065			73,001		36,612		(19,722		)	539,956
Income taxes, current	—			(1,634		)	2,698		648		—			1,712
Prepaid expenses and other current assets	—			6,824			18,279		962		—			26,065
Total current assets	—			1,166,306			266,035		181,261		(23,567		)	1,590,035

Property and equipment, at cost, net	—			614,656			305,636		73,945		—			994,237

Investments	321,083			1,770,303			901,772		941,396		(3,809,602		)	124,952
Goodwill	—			—			1,256,662		35,043		(112		)	1,291,593
Service contracts, net	—			81,462			13		2,240		—			83,715
Other assets, net	1,081,203			(913		)	3,526,051		9,110		(4,601,168		)	14,283
	$	1,402,286		$	3,631,814		$	6,256,169	$	1,242,995	$	(8,434,449	)	$	4,098,815

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	(465,247	)	$	(1,773,815	)	$	2,298,790	$	16,781	$	38,005		$	114,514
Accrued compensation and related liabilities	—			73,545			23,051		5,380		—			101,976
Accrued liabilities	—			84,270			251,217		13,578		—			349,065
Debt due within one year	—			250,000			—		—		—			250,000
Total current liabilities	(465,247		)	(1,366,000		)	2,573,058		35,739		38,005			815,555

Long-term liabilities:
Debt due after one year	—			1,044,032			—		390		—			1,044,422
Deferred income taxes	—			(427		)	252,149		7,753		—			259,475
Accrued liabilities	—			19,628			116,091		985		—			136,704
Total long-term liabilities	—			1,063,233			368,240		9,128		—			1,440,601
Total shareholders’ equity	1,867,533			3,934,581			3,314,871		1,198,128		(8,472,454		)	1,842,659
	$	1,402,286		$	3,631,814		$	6,256,169	$	1,242,995	$	(8,434,449	)	$	4,098,815

Condensed Consolidating Statement of Cash Flows

Three Months Ended August 31, 2016

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated

Cash flows from operating activities:
Net income	$	138,091		$	43,871		$	87,515		$	3,879		$	(135,265	)	$	138,091
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation	—			25,755			11,441			2,483			—			39,679
Amortization of intangible assets	—			3,194			88			207			—			3,489
Stock-based compensation	20,779			—			—			—			—			20,779
Deferred income taxes	—			(1,050		)	3,227			(207		)	—			1,970
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(21,693		)	(612		)	(641		)	—			(22,946		)
Inventories, net	—			(11,331		)	1,807			(957		)	(2,536		)	(13,017		)
Uniforms and other rental items in service	—			950			(2,718		)	301			(405		)	(1,872		)
Prepaid expenses and other current assets	—			(63		)	(5,419		)	(173		)	—			(5,655		)
Accounts payable	—			(58,018		)	74,361			1,022			115			17,480
Accrued compensation and related liabilities	—			(25,961		)	(10,170		)	(1,145		)	—			(37,276		)
Accrued liabilities and other	—			(2,906		)	(19,352		)	(1,418		)	—			(23,676		)
Income taxes, current	—			3,163			37,145			234			—			40,542
Net cash provided by (used in) operating activities	158,870			(44,089		)	177,313			3,585			(138,091		)	157,588

Cash flows from investing activities:
Capital expenditures	—			(43,130		)	(30,268		)	(5,182		)	—			(78,580		)
Proceeds from redemption of marketable securities	—			—			—			109,612			—			109,612
Purchase of marketable securities and investments	—			(4,161		)	(29,496		)	(103,805		)	17,733			(119,729		)
Acquisitions of businesses, net of cash acquired	—			(905		)	60			(10,146		)	—			(10,991		)
Other, net	(156,282		)	166,037			(132,771		)	1,740			120,358			(918		)
Net cash (used in) provided by investing activities	(156,282		)	117,841			(192,475		)	(7,781		)	138,091			(100,606		)

Cash flows from financing activities:
Proceeds from issuance of commercial paper, net	—			163,800			—			—			—			163,800
Proceeds from issuance of debt	—			—			(2,000		)	2,000			—			—
Repayment of debt	—			(250,000		)	—			—			—			(250,000		)
Prepaid short-term debt financing fees	—			(8,625		)	—			—			—			(8,625		)
Exercise of stock-based compensation awards	16,282			—			—			—			—			16,282
Repurchase of common stock	(18,870		)	—			—			—			—			(18,870		)
Other, net	—			385			—			—			—			385
Net cash (used in) provided by financing activities	(2,588		)	(94,440		)	(2,000		)	2,000			—			(97,028		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			(102		)	—			(102		)

Net decrease in cash and cash equivalents	—			(20,688		)	(17,162		)	(2,298		)	—			(40,148		)
Cash and cash equivalents at beginning of period	—			57,893			55,392			26,072			—			139,357
Cash and cash equivalents at end of period	$	—		$	37,205		$	38,230		$	23,774		$	—		$	99,209

Condensed Consolidating Statement of Cash Flows

Three Months Ended August 31, 2015

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated

Cash flows from operating activities:
Net income	$	100,181		$	31,810		$	67,855		$	2,139		$	(101,804	)	$	100,181
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation	—			22,677			11,090			2,398			—			36,165
Amortization of intangible assets	—			3,513			40			50			—			3,603
Stock-based compensation	23,917			—			—			—			—			23,917
Gain on Storage transaction	—			(4,843		)	—			—			—			(4,843		)
Loss on Shred-it	—			13,427			—			1,089			—			14,516
Deferred income taxes	—			23			5,782			(173		)	—			5,632
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(20,532		)	(250		)	1,527			—			(19,255		)
Inventories, net	—			(8,855		)	(1,131		)	(334		)	2,211			(8,109		)
Uniforms and other rental items in service	—			(2,164		)	(1,498		)	(700		)	(577		)	(4,939		)
Prepaid expenses and other current assets	—			(159		)	(5,939		)	74			—			(6,024		)
Accounts payable	—			31,253			(17,508		)	1,802			(16		)	15,531
Accrued compensation and related liabilities	—			(26,303		)	(7,846		)	(1,430		)	—			(35,579		)
Accrued liabilities and other	—			(2,444		)	(22,306		)	(2,227		)	724			(26,253		)
Income taxes, current	—			8,799			39,843			(102		)	—			48,540
Net cash provided by operating activities	124,098			46,202			68,132			4,113			(99,462		)	143,083

Cash flows from investing activities:
Capital expenditures	—			(32,661		)	(26,651		)	(3,319		)	—			(62,631		)
Proceeds from redemption of marketable securities	—			—			—			152,907			—			152,907
Purchase of marketable securities and investments	—			2,215			(10,148		)	(192,097		)	4,010			(196,020		)
Proceeds from Storage transaction	—			24,395			—			—			—			24,395
Acquisitions of businesses, net of cash acquired	—			(96,353		)	—			(25,081		)	—			(121,434		)
Other, net	85,656			55,473			(235,508		)	(876		)	96,176			921
Net cash provided by (used in) investing activities	85,656			(46,931		)	(272,307		)	(68,466		)	100,186			(201,862		)

Cash flows from financing activities:
Proceeds from issuance of debt	—			—			(55		)	55			—			—
Repayment of debt	—			(309		)	853			164			(724		)	(16		)
Exercise of stock-based compensation awards	11,844			—			—			—			—			11,844
Repurchase of common stock	(221,598		)	—			—			—			—			(221,598		)
Other, net	—			488			—			(437		)	—			51
Net cash (used in) provided by financing activities	(209,754		)	179			798			(218		)	(724		)	(209,719		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			(1,715		)	—			(1,715		)

Net decrease in cash and cash equivalents	—			(550		)	(203,377		)	(66,286		)	—			(270,213		)
Cash and cash equivalents at beginning of period	—			74,632			248,716			93,725			—			417,073
Cash and cash equivalents at end of period	$	—		$	74,082		$	45,339		$	27,439		$	—		$	146,860