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 $99.5 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 consolidating condensed financial statements are provided as an alternative to filing separate financial statements of the guarantors. Each of the subsidiaries presented in the following consolidating condensed financial statements has been fully consolidated in Cintas’ consolidated condensed financial statements. The following consolidating condensed financial statements should be read in conjunction with the consolidated condensed 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.

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

Consolidating Condensed Income Statement

Three Months Ended February 28, 2017

(In thousands)



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

Revenue:
Uniform rental and facility services	$	—	$	826,606		$	147,293		$	57,082		$	(37,583	)	$	993,398
Other	—		403,650			297			16,672			(132,882		)	287,737
Equity in net income of affiliates	118,005		—			—			—			(118,005		)	—
	118,005		1,230,256			147,590			73,754			(288,470		)	1,281,135
Costs and expenses (income):
Cost of uniform rental and facility services	—		476,004			92,273			36,877			(58,616		)	546,538
Cost of other	—		280,600			(19,449		)	12,462			(105,440		)	168,173
Selling and administrative expenses	—		399,769			(51,465		)	20,883			(6,802		)	362,385
G&K Services, Inc. transaction expenses	—		—			9,344			—			—			9,344
Operating income	118,005		73,883			116,887			3,532			(117,612		)	194,695

Interest income	—		(2		)	(6		)	(4		)	1			(11		)
Interest expense (income)	—		14,981			(1,193		)	(92		)	—			13,696

Income before income taxes	118,005		58,904			118,086			3,628			(117,613		)	181,010
Income taxes	—		20,197			40,474			1,712			(20		)	62,363
Income from continuing operations	118,005		38,707			77,612			1,916			(117,593		)	118,647

(Loss) income from discontinued operations, net of tax	—		(1,098		)	447			9			—			(642		)

Net income	$	118,005	$	37,609		$	78,059		$	1,925		$	(117,593	)	$	118,005

Consolidating Condensed Income Statement

Three Months Ended February 29, 2016

(In thousands)



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

Revenue:
Uniform rental and facility services	$	—	$	784,876		$	137,347		$	50,763		$	(36,421	)	$	936,565
Other	—		390,207			951			14,952			(126,592		)	279,518
Equity in net income of affiliates	117,279		—			—			—			(117,279		)	—
	117,279		1,175,083			138,298			65,715			(280,292		)	1,216,083
Costs and expenses (income):
Cost of uniform rental and facility services	—		460,124			87,735			34,056			(57,259		)	524,656
Cost of other	—		270,627			(18,056		)	11,399			(97,151		)	166,819
Selling and administrative expenses	—		364,555			(43,503		)	17,459			(6,855		)	331,656
Operating income	117,279		79,777			112,122			2,801			(119,027		)	192,952

Interest income	—		(7		)	(262		)	(68		)	2			(335		)
Interest expense (income)	—		16,350			(207		)	20			—			16,163

Income before income taxes	117,279		63,434			112,591			2,849			(119,029		)	177,124
Income taxes	—		21,223			37,533			1,118			(29		)	59,845
Income from continuing operations	117,279		42,211			75,058			1,731			(119,000		)	117,279

Income (loss) from discontinued operations, net of tax	62		74			—			(12		)	(62		)	62

Net income	$	117,341	$	42,285		$	75,058		$	1,719		$	(119,062	)	$	117,341

Consolidating Condensed Income Statement

Nine Months Ended February 28, 2017

(In thousands)



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

Revenue:
Uniform rental and facility services	$	—	$	2,505,322		$	446,327		$	172,355		$	(125,445	)	$	2,998,559
Other	—		1,225,276			1,898			53,709			(407,254		)	873,629
Equity in net income of affiliates	396,473		—			—			—			(396,473		)	—
	396,473		3,730,598			448,225			226,064			(929,172		)	3,872,188
Costs and expenses (income):
Cost of uniform rental and facility services	—		1,442,713			277,268			111,594			(188,353		)	1,643,222
Cost of other	—		847,992			(53,929		)	39,926			(326,648		)	507,341
Selling and administrative expenses	—		1,213,418			(150,455		)	59,851			(21,181		)	1,101,633
G&K Services, Inc. transaction expenses	—		—			15,478			—			—			15,478
Operating income	396,473		226,475			359,863			14,693			(392,990		)	604,514

Interest income	—		(2		)	(30		)	(77		)	2			(107		)
Interest expense (income)	—		44,336			(3,071		)	(130		)	—			41,135

Income before income taxes	396,473		182,141			362,964			14,900			(392,992		)	563,486
Income taxes	—		59,541			118,652			5,176			(75		)	183,294
Income from continuing operations	396,473		122,600			244,312			9,724			(392,917		)	380,192

Income from discontinued operations, net of tax	—		13,884			447			1,950			—			16,281

Net income	$	396,473	$	136,484		$	244,759		$	11,674		$	(392,917	)	$	396,473

Consolidating Condensed Income Statement

Nine Months Ended February 29, 2016

(In thousands)



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

Revenue:
Uniform rental and facility services	$	—	$	2,358,431		$	410,479		$	158,449		$	(114,682	)	$	2,812,677
Other	—		1,157,078			2,981			47,279			(385,962		)	821,376
Equity in net income of affiliates	338,930		—			—			—			(338,930		)	—
	338,930		3,515,509			413,460			205,728			(839,574		)	3,634,053
Costs and expenses (income):
Cost of uniform rental and facility services	—		1,377,174			260,635			105,811			(174,370		)	1,569,250
Cost of other	—		807,458			(50,603		)	34,822			(303,026		)	488,651
Selling and administrative expenses	—		1,099,373			(134,457		)	51,479			(19,051		)	997,344
Operating income	338,930		231,504			337,885			13,616			(343,127		)	578,808

Interest income	—		(19		)	(378		)	(170		)	2			(565		)
Interest expense (income)	—		49,152			(425		)	19			—			48,746

Income before income taxes	338,930		182,371			338,688			13,767			(343,129		)	530,627
Income taxes	—		64,101			119,044			8,634			(82		)	191,697
Income from continuing operations	338,930		118,270			219,644			5,133			(343,047		)	338,930

Income (loss) from discontinued operations, net of tax	223,692		229,355			—			(5,663		)	(223,692		)	223,692

Net income (loss)	$	562,622	$	347,625		$	219,644		$	(530	)	$	(566,739	)	$	562,622

Consolidating Condensed Statement of Comprehensive Income

Three Months Ended February 28, 2017

(In thousands)



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

Net income	$	118,005	$	37,609	$	78,059	$	1,925	$	(117,593	)	$	118,005

Other comprehensive income, net of tax:
Foreign currency translation adjustments	2,400		—		—		2,400		(2,400		)	2,400
Change in fair value of derivatives	2,560		2,560		—		—		(2,560		)	2,560
Amortization of interest rate lock agreements	385		385		—		—		(385		)	385

Other comprehensive income	5,345		2,945		—		2,400		(5,345		)	5,345

Comprehensive income	$	123,350	$	40,554	$	78,059	$	4,325	$	(122,938	)	$	123,350

Consolidating Condensed Statement of Comprehensive Income

Three Months Ended February 29, 2016

(In thousands)



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

Net income	$	117,341	$	42,285		$	75,058	$	1,719		$	(119,062	)	$	117,341

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	—		—			—		(2,405		)	—			(2,405		)
Change in fair value of derivatives	—		(14,070		)	—		—			—			(14,070		)
Amortization of interest rate lock agreements	—		488			—		—			—			488
Change in fair value of available-for-sale securities	—		—			—		(7		)	—			(7		)

Other comprehensive loss	—		(13,582		)	—		(2,412		)	—			(15,994		)

Comprehensive income (loss)	$	117,341	$	28,703		$	75,058	$	(693	)	$	(119,062	)	$	101,347

Consolidating Condensed Statement of Comprehensive Income

Nine Months Ended February 28, 2017

(In thousands)



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

Net income	$	396,473		$	136,484	$	244,759	$	11,674		$	(392,917	)	$	396,473

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(5,135		)	—		—		(5,135		)	5,135			(5,135		)
Change in fair value of derivatives	16,913			16,913		—		—			(16,913		)	16,913
Amortization of interest rate lock agreements	1,155			1,155		—		—			(1,155		)	1,155

Other comprehensive income (loss)	12,933			18,068		—		(5,135		)	(12,933		)	12,933

Comprehensive income	$	409,406		$	154,552	$	244,759	$	6,539		$	(405,850	)	$	409,406

Consolidating Condensed Statement of Comprehensive Income

Nine Months Ended February 29, 2016

(In thousands)



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

Net income (loss)	$	562,622	$	347,625		$	219,644	$	(530	)	$	(566,739	)	$	562,622

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	—		—			—		(19,044		)	—			(19,044		)
Cumulative translation adjustment on Shred-it	—		5,875			—		597			—			6,472
Change in fair value of derivatives	—		(14,070		)	—		—			—			(14,070		)
Amortization of interest rate lock agreements	—		1,464			—		—			—			1,464
Change in fair value of available-for-sale securities	—		—			—		(25		)	—			(25		)

Other comprehensive loss	—		(6,731		)	—		(18,472		)	—			(25,203		)

Comprehensive income (loss)	$	562,622	$	340,894		$	219,644	$	(19,002	)	$	(566,739	)	$	537,419

Consolidating Condensed Balance Sheet

As of February 28, 2017

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors		Non- Guarantors		Eliminations			Cintas Corporation Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		$	42,774		$	9,223	$	95,247	$	—		$	147,244
Accounts receivable, net	—			459,768			103,475		35,620		—			598,863
Inventories, net	—			244,455			17,071		12,822		(2,167		)	272,181
Uniforms and other rental items in service	—			446,403			75,754		35,302		(17,729		)	539,730
Income taxes, current	—			(12,520		)	32,327		753		—			20,560
Prepaid expenses and other current assets	—			27,233			23,317		813		—			51,363
Total current assets	—			1,208,113			261,167		180,557		(19,896		)	1,629,941

Property and equipment, at cost, net	—			660,977			348,996		80,236		—			1,090,209

Investments	321,083			1,775,947			923,278		961,070		(3,833,210		)	148,168
Goodwill	—			—			1,262,996		40,154		(112		)	1,303,038
Service contracts, net	—			77,877			—		5,843		—			83,720
Other assets, net	1,391,929			937			3,546,292		8,877		(4,931,947		)	16,088
	$	1,713,012		$	3,723,851		$	6,342,729	$	1,276,737	$	(8,785,165	)	$	4,271,164

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	(465,246	)	$	(1,810,057	)	$	2,344,761	$	20,363	$	38,119		$	127,940
Accrued compensation and related liabilities	—			70,302			19,953		5,098		—			95,353
Accrued liabilities	—			65,543			242,206		13,575		—			321,324
Debt due within one year	—			399,351			—		—		—			399,351
Total current liabilities	(465,246		)	(1,274,861		)	2,606,920		39,036		38,119			943,968

Long-term liabilities:
Debt due after one year	—			744,799			—		390		—			745,189
Deferred income taxes	—			(420		)	259,562		7,923		—			267,065
Accrued liabilities	—			—			135,522		1,162		—			136,684
Total long-term liabilities	—			744,379			395,084		9,475		—			1,148,938

Total shareholders’ equity	2,178,258			4,254,333			3,340,725		1,228,226		(8,823,284		)	2,178,258
	$	1,713,012		$	3,723,851		$	6,342,729	$	1,276,737	$	(8,785,165	)	$	4,271,164

Consolidating Condensed 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

Consolidating Condensed Statement of Cash Flows

Nine Months Ended February 28, 2017

(In thousands)



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

Cash flows from operating activities:
Net income	$	396,473		$	136,484		$	244,759		$	11,674		$	(392,917	)	$	396,473
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	—			79,459			33,697			7,337			—			120,493
Amortization of intangible assets	—			10,288			262			671			—			11,221
Stock-based compensation	63,578			—			—			—			—			63,578
Gain on Shred-it	—			(23,935		)	—			(1,941		)	—			(25,876		)
Deferred income taxes	—			(11,104		)	7,406			226			—			(3,472		)
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(21,965		)	(5,959		)	(722		)	—			(28,646		)
Inventories, net	—			(21,588		)	2,079			(2,177		)	(1,678		)	(23,364		)
Uniforms and other rental items in service	—			3,662			(2,753		)	1,031			(1,993		)	(53		)
Prepaid expenses and other current assets	—			(6,460		)	(5,037		)	110			—			(11,387		)
Accounts payable	—			(36,312		)	45,593			6,143			114			15,538
Accrued compensation and related liabilities	—			(3,243		)	(3,099		)	530			—			(5,812		)
Accrued liabilities and other	—			(10,958		)	5,110			(231		)	—			(6,079		)
Income taxes, current	—			10,886			(29,632		)	(110		)	—			(18,856		)
Net cash provided by operating activities	460,051			105,214			292,426			22,541			(396,474		)	483,758

Cash flows from investing activities:
Capital expenditures	—			(125,995		)	(77,025		)	(15,601		)	—			(218,621		)
Proceeds from redemption of marketable securities	—			—			—			172,506			—			172,506
Purchase of marketable securities and investments	—			(5,644		)	(41,180		)	(102,418		)	23,608			(125,634		)
Proceeds from sale of investment in Shred-it	—			23,935			—			1,941			—			25,876
Acquisitions of businesses, net of cash acquired	—			(9,097		)	—			(10,533		)	—			(19,630		)
Other, net	(322,723		)	166,718			(218,390		)	1,557			372,866			28
Net cash (used in) provided by investing activities	(322,723		)	49,917			(336,595		)	47,452			396,474			(165,475		)

Cash flows from financing activities:
Proceeds from issuance of commercial paper, net	—			99,500			—			—			—			99,500
Proceeds from issuance of debt	—			—			(2,000		)	2,000			—			—
Repayment of debt	—			(250,000		)	—			—			—			(250,000		)
Prepaid short-term debt financing fees	—			(13,949		)	—			—			—			(13,949		)
Proceeds from exercise of stock-based compensation awards	25,114			—			—			—			—			25,114
Dividends paid	(142,388		)	—			—			(56		)	—			(142,444		)
Repurchase of common stock	(20,054		)	—			—			—			—			(20,054		)
Other, net	—			(5,801		)	—			—			—			(5,801		)
Net cash (used in) provided by financing activities	(137,328		)	(170,250		)	(2,000		)	1,944			—			(307,634		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			(2,762		)	—			(2,762		)

Net (decrease) increase in cash and cash equivalents	—			(15,119		)	(46,169		)	69,175			—			7,887
Cash and cash equivalents at beginning of period	—			57,893			55,392			26,072			—			139,357
Cash and cash equivalents at end of period	$	—		$	42,774		$	9,223		$	95,247		$	—		$	147,244

Consolidating Condensed Statement of Cash Flows

Nine Months Ended February 29, 2016

(In thousands)



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

Cash flows from operating activities:
Net income (loss)	$	562,622		$	347,625		$	219,644		$	(530	)	$	(566,739	)	$	562,622
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation	—			70,441			33,208			6,886			—			110,535
Amortization of intangible assets	—			11,612			218			306			—			12,136
Stock-based compensation	57,169			—			—			—			—			57,169
Gain on Storage transactions	—			(12,547		)	—			(3,239		)	—			(15,786		)
(Gain) loss on Shred-it	—			(362,237		)	—			12,499			—			(349,738		)
Deferred income taxes	—			(82,115		)	5,895			1,680			—			(74,540		)
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(29,955		)	(11,251		)	(317		)	—			(41,523		)
Inventories, net	—			(25,169		)	(1,584		)	(1,946		)	4,690			(24,009		)
Uniforms and other rental items in service	—			(2,339		)	(1,876		)	(2,118		)	(572		)	(6,905		)
Prepaid expenses and other current assets	—			55			(1,730		)	95			—			(1,580		)
Accounts payable	—			(358,602		)	385,841			10,132			(1		)	37,370
Accrued compensation and related liabilities	—			(2,373		)	(1,118		)	(240		)	—			(3,731		)
Accrued liabilities and other	—			(21,747		)	4,233			(1,511		)	724			(18,301		)
Income taxes, current	—			55,609			(2,042		)	(132		)	—			53,435
Net cash provided by (used in) operating activities	619,791			(411,742		)	629,438			21,565			(561,898		)	297,154

Cash flows from investing activities:
Capital expenditures	—			(120,943		)	(76,161		)	(10,398		)	—			(207,502		)
Proceeds from redemption of marketable securities	—			—			—			327,779			—			327,779
Purchase of marketable securities and investments	—			(3,838		)	(2,235		)	(385,760		)	7,037			(384,796		)
Proceeds from Storage transactions, net of cash acquired	—			32,099			—			3,239			—			35,338
Proceeds from sale of Shred-it	—			565,643			—			12,614			—			578,257
Acquisitions of businesses, net of cash acquired	—			(127,524		)	—			(24,207		)	—			(151,731		)
Other, net	(24,380		)	121,547			(649,264		)	945			555,585			4,433
Net cash (used in) provided by investing activities	(24,380		)	466,984			(727,660		)	(75,788		)	562,622			201,778

Cash flows from financing activities:
Proceeds from issuance of debt	—			—			(55		)	55			—			—
Repayment of debt	—			(309		)	1,053			(36		)	(724		)	(16		)
Exercise of stock-based compensation awards	22,260			—			—			—			—			22,260
Dividends paid	(115,232		)	—			—			(41		)	—			(115,273		)
Repurchase of common stock	(502,439		)	—			—			—			—			(502,439		)
Other, net	—			1,464			—			(311		)	—			1,153
Net cash (used in) provided by financing activities	(595,411		)	1,155			998			(333		)	(724		)	(594,315		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			(6,574		)	—			(6,574		)

Net increase (decrease) in cash and cash equivalents	—			56,397			(97,224		)	(61,130		)	—			(101,957		)
Cash and cash equivalents at beginning of period	—			74,632			248,716			93,725			—			417,073
Cash and cash equivalents at end of period	$	—		$	131,029		$	151,492		$	32,595		$	—		$	315,116