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Supplemental Guarantor Information
 12 Months Ended
May 31, 2018
Condensed Financial Information Disclosure [Abstract]  
Supplemental Guarantor Information
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 $2,550.0 million aggregate principal amount of outstanding debt, which is unconditionally guaranteed, jointly and severally, by Cintas Corporation and its wholly-owned, direct and indirect domestic subsidiaries.
As allowed by Securities and Exchange Commission 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.
Condensed consolidating financial statements for Cintas, Corp. 2, the subsidiary guarantors and non-guarantors are presented on the following pages:
Condensed Consolidating Income Statement
Year Ended May 31, 2018
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Uniform rental and facility
   services
$
—

 
$
4,361,716

 
$
681,846

 
$
400,792

 
$
(197,230
)
 
$
5,247,124

Other
—

 
1,778,845

 
112

 
88,092

 
(637,541
)
 
1,229,508

Equity in net income of
    affiliates
783,932

 
—

 
—

 
—

 
(783,932
)
 
—

 
783,932

 
6,140,561

 
681,958

 
488,884

 
(1,618,703
)
 
6,476,632

Costs and expenses (income):
 
 
 
 
 
 
 
 
 
 
 
Cost of uniform rental and
   facility services
—

 
2,511,854

 
418,722

 
254,718

 
(298,335
)
 
2,886,959

Cost of other
—

 
1,183,036

 
(57,220
)
 
62,368

 
(507,034
)
 
681,150

Selling and administrative
   expenses
—

 
2,093,655

 
(271,222
)
 
125,545

 
(31,186
)
 
1,916,792

G&K Services, Inc. transaction
    and integration expenses
—

 
15,383

 
22,148

 
4,366

 
—

 
41,897

Operating income
783,932

 
336,633

 
569,530

 
41,887

 
(782,148
)
 
949,834

 
 
 
 
 
 
 
 
 
 
 
 
Interest income
—

 
(310
)
 
(242
)
 
(793
)
 
3

 
(1,342
)
Interest expense (income)
—

 
111,292

 
(1,017
)
 
(100
)
 
—

 
110,175

 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
783,932

 
225,651

 
570,789

 
42,780

 
(782,151
)
 
841,001

Income tax (benefit) expense
—

 
(48,907
)
 
90,886

 
15,212

 
(122
)
 
57,069

Income from continuing
    operations
783,932

 
274,558

 
479,903

 
27,568

 
(782,029
)
 
783,932

Income (loss) from discontinued
    operations, net of tax
58,654

 
68,293

 
(9,688
)
 
—

 
(58,605
)
 
58,654

Net income
$
842,586

 
$
342,851

 
$
470,215

 
$
27,568

 
$
(840,634
)
 
$
842,586


Condensed Consolidating Income Statement

Year Ended May 31, 2017
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Uniform rental and facility
   services
$
—

 
$
3,511,483

 
$
604,679

 
$
257,288

 
$
(170,960
)
 
$
4,202,490

Other
—

 
1,604,877

 
1,810

 
73,006

 
(558,802
)
 
1,120,891

Equity in net income of
   affiliates
457,286

 
—

 
—

 
—

 
(457,286
)
 
—

 
457,286

 
5,116,360

 
606,489

 
330,294

 
(1,187,048
)
 
5,323,381

Costs and expenses (income):
 
 
 
 
 
 
 
 
 
 
 
Cost of uniform rental and
   facility services
—

 
2,021,365

 
378,404

 
164,969

 
(256,964
)
 
2,307,774

Cost of other
—

 
1,070,780

 
(41,509
)
 
56,210

 
(450,169
)
 
635,312

Selling and administrative
   expenses
—

 
1,686,209

 
(220,887
)
 
87,672

 
(25,614
)
 
1,527,380

G&K Services, Inc. transaction
    and integration expenses
—

 
51,868

 
19,060

 
8,296

 
—

 
79,224

Operating income
457,286

 
286,138

 
471,421

 
13,147

 
(454,301
)
 
773,691

 
 
 
 
 
 
 
 
 
 
 
 
Interest income
—

 
(26
)
 
(191
)
 
(22
)
 
2

 
(237
)
Interest expense (income)
—

 
89,706

 
(2,978
)
 
(204
)
 
—

 
86,524

 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
457,286

 
196,458

 
474,590

 
13,373

 
(454,303
)
 
687,404

Income taxes
—

 
65,829

 
159,025

 
5,365

 
(101
)
 
230,118

Income from continuing
    operations
457,286

 
130,629

 
315,565

 
8,008

 
(454,202
)
 
457,286

Income from discontinued
    operations, net of tax
23,422

 
22,287

 
—

 
1,135

 
(23,422
)
 
23,422

Net income
$
480,708

 
$
152,916

 
$
315,565

 
$
9,143

 
$
(477,624
)
 
$
480,708

Condensed Consolidating Income Statement

Year Ended May 31, 2016
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Uniform rental and facility
   services
$
—

 
$
3,147,844

 
$
553,414

 
$
213,526

 
$
(155,260
)
 
$
3,759,524

Other
—

 
1,484,556

 
8,540

 
66,270

 
(523,118
)
 
1,036,248

Equity in net income of
   affiliates
448,605

 
—

 
—

 
—

 
(448,605
)
 
—

 
448,605

 
4,632,400

 
561,954

 
279,796

 
(1,126,983
)
 
4,795,772

Costs and expenses (income):
 
 
 
 
 
 
 
 
 
 
 
Cost of uniform rental and
   facility services
—

 
1,835,835

 
350,500

 
142,601

 
(236,103
)
 
2,092,833

Cost of other
—

 
1,001,576

 
(40,741
)
 
48,539

 
(407,775
)
 
601,599

Selling and administrative
   expenses
—

 
1,497,106

 
(206,889
)
 
69,257

 
(27,075
)
 
1,332,399

Operating income
448,605

 
297,883

 
459,084

 
19,399

 
(456,030
)
 
768,941

 
 
 
 
 
 
 
 
 
 
 
 
Interest income
—

 
—

 
(666
)
 
(232
)
 
2

 
(896
)
Interest expense (income)
—

 
65,534

 
(1,027
)
 
15

 
—

 
64,522

 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
448,605

 
232,349

 
460,777

 
19,616

 
(456,032
)
 
705,315

Income taxes
—

 
82,783

 
164,169

 
9,874

 
(116
)
 
256,710

Income from continuing
    operations
448,605

 
149,566

 
296,608

 
9,742

 
(455,916
)
 
448,605

Income (loss) from discontinued
    operations, net of tax
244,915

 
250,625

 
—

 
(5,837
)
 
(244,788
)
 
244,915

Net income
$
693,520

 
$
400,191

 
$
296,608

 
$
3,905

 
$
(700,704
)
 
$
693,520


Condensed Consolidating Statement of Comprehensive Income

Year Ended May 31, 2018
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
842,586

 
$
342,851

 
$
470,215

 
$
27,568

 
$
(840,634
)
 
$
842,586

 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income
   (loss), net of tax:
 
 
 
 
 
 
 
 
 
 

Foreign currency translation
    adjustments
19,276

 
—

 
—

 
19,276

 
(19,276
)
 
19,276

Amortization of interest rate
    lock agreements
(933
)
 
(933
)
 
—

 
—

 
933

 
(933
)
Other
1,029

 
267

 
762

 
—

 
(1,029
)
 
1,029

 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
19,372

 
(666
)
 
762

 
19,276

 
(19,372
)
 
19,372

 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income
$
861,958

 
$
342,185

 
$
470,977

 
$
46,844

 
$
(860,006
)
 
$
861,958

Condensed Consolidating Statement of Comprehensive Income

Year Ended May 31, 2017
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
480,708

 
$
152,916

 
$
315,565

 
$
9,143

 
$
(477,624
)
 
$
480,708

 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss)
   income, net of tax:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation
    adjustments
(10,252
)
 
—

 
—

 
(10,252
)
 
10,252

 
(10,252
)
Change in fair value of cash
    flow hedges
31,136

 
31,136

 
—

 
—

 
(31,136
)
 
31,136

Amortization of interest rate
    lock agreements
1,076

 
1,076

 
—

 
—

 
(1,076
)
 
1,076

Other
(115
)
 
—

 
(115
)
 
—

 
115

 
(115
)
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
21,845

 
32,212

 
(115
)
 
(10,252
)
 
(21,845
)
 
21,845

 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss)
$
502,553

 
$
185,128

 
$
315,450

 
$
(1,109
)
 
$
(499,469
)
 
$
502,553

Condensed Consolidating Statement of Comprehensive Income

Year Ended May 31, 2016
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
693,520

 
$
400,191

 
$
296,608

 
$
3,905

 
$
(700,704
)
 
$
693,520

 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss)
   income, net of tax:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation
    adjustments
—

 
—

 
—

 
(11,933
)
 
—

 
(11,933
)
Cumulative translation
    adjustment on Shred-it
—

 
5,875

 
—

 
597

 
—

 
6,472

Change in fair value of cash
    flow hedges
—

 
(12,156
)
 
—

 
—

 
—

 
(12,156
)
Amortization of interest rate
    lock agreements
—

 
1,952

 
—

 
—

 
—

 
1,952

 Other
—

 
—

 
(730
)
 
(8
)
 
—

 
(738
)
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive loss
—

 
(4,329
)
 
(730
)
 
(11,344
)
 
—

 
(16,403
)
 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss)
$
693,520

 
$
395,862

 
$
295,878

 
$
(7,439
)
 
$
(700,704
)
 
$
677,117



Condensed Consolidating Balance Sheet

As of May 31, 2018
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
44,499

 
$
60,310

 
$
33,915

 
$
—

 
$
138,724

Accounts receivable, net
—

 
620,920

 
120,767

 
62,896

 
—

 
804,583

Inventories, net
—

 
225,581

 
38,844

 
15,922

 
—

 
280,347

Uniforms and other rental
   items in service
—

 
585,108

 
81,494

 
54,248

 
(18,589
)
 
702,261

Income taxes, current
—

 
5,546

 
9,258

 
4,830

 
—

 
19,634

Prepaid expenses and other
    current assets
—

 
9,453

 
21,688

 
1,242

 
—

 
32,383

Total current assets
—

 
1,491,107

 
332,361

 
173,053

 
(18,589
)
 
1,977,932

 
 
 
 
 
 
 
 
 
 
 
 
Property and equipment, net
—

 
900,014

 
370,186

 
112,530

 
—

 
1,382,730

 
 
 
 
 
 
 
 
 
 
 
 
Investments (1)
321,083

 
3,595,668

 
950,239

 
1,716,070

 
(6,407,479
)
 
175,581

Goodwill
—

 
—

 
2,579,769

 
267,231

 
(112
)
 
2,846,888

Service contracts, net
—

 
468,283

 
—

 
77,485

 
—

 
545,768

Other assets, net
2,230,196

 
593

 
4,381,476

 
8,656

 
(6,591,606
)
 
29,315

 
$
2,551,279

 
$
6,455,665

 
$
8,614,031

 
$
2,355,025

 
$
(13,017,786
)
 
$
6,958,214

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and
Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
(465,247
)
 
$
(1,724,844
)
 
$
2,395,434

 
$
(28,216
)
 
$
37,947

 
$
215,074

Accrued compensation and
    related liabilities
—

 
104,560

 
24,878

 
11,216

 
—

 
140,654

Accrued liabilities
—

 
88,949

 
308,485

 
22,695

 
—

 
420,129

Total current liabilities
(465,247
)
 
(1,531,335
)
 
2,728,797

 
5,695

 
37,947

 
775,857

 
 
 
 
 
 
 
 
 
 
 
 
Long-term liabilities:
 

 
 

 
 

 
 

 
 

 
 

Debt due after one year
—

 
2,534,919

 
—

 
390

 
—

 
2,535,309

Deferred income taxes
—

 
215,881

 
104,559

 
32,141

 
—

 
352,581

Accrued liabilities
—

 
63,073

 
198,181

 
16,687

 
—

 
277,941

Total long-term liabilities
—

 
2,813,873

 
302,740

 
49,218

 
—

 
3,165,831

Total shareholders' equity
3,016,526

 
5,173,127

 
5,582,494

 
2,300,112

 
(13,055,733
)
 
3,016,526

 
$
2,551,279

 
$
6,455,665

 
$
8,614,031

 
$
2,355,025

 
$
(13,017,786
)
 
$
6,958,214

(1) Investments include inter company investment activity. Corp 2 and Subsidiary Guarantors hold $17.6 million and $158.0 million, respectively, of the $175.6 million consolidated net investments.
Condensed Consolidating Balance Sheet

As of May 31, 2017
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
48,658

 
$
17,302

 
$
103,306

 
$
—

 
$
169,266

Marketable securities
—

 
—

 
—

 
22,219

 
—

 
22,219

Accounts receivable, net
—

 
543,769

 
137,881

 
54,358

 
—

 
736,008

Inventories, net
—

 
243,677

 
21,466

 
14,461

 
(1,386
)
 
278,218

Uniforms and other rental
    items in service
—

 
531,295

 
78,012

 
45,388

 
(18,993
)
 
635,702

Income taxes, current
—

 
16,173

 
25,138

 
3,009

 
—

 
44,320

Prepaid expenses and other
     current assets
—

 
13,234

 
16,188

 
710

 
—

 
30,132

Assets held for sale
—

 
23,095

 
15,518

 
—

 
—

 
38,613

Total current assets
—

 
1,419,901

 
311,505

 
243,451

 
(20,379
)
 
1,954,478

 
 
 
 
 
 
 
 
 
 
 
 
Property and equipment, net
—

 
851,018

 
364,724

 
107,759

 
—

 
1,323,501

 
 
 
 
 
 
 
 
 
 
 
 
Investments (1)
321,083

 
3,605,457

 
929,657

 
1,711,070

 
(6,402,479
)
 
164,788

Goodwill
—

 
—

 
2,742,898

 
39,549

 
(112
)
 
2,782,335

Service contracts, net
—

 
505,698

 
—

 
81,290

 
—

 
586,988

Other assets, net
1,516,463

 
14,705

 
3,489,653

 
11,983

 
(5,000,837
)
 
31,967

 
$
1,837,546

 
$
6,396,779

 
$
7,838,437

 
$
2,195,102

 
$
(11,423,807
)
 
$
6,844,057

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and
Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
(465,247
)
 
$
(1,596,731
)
 
$
2,292,388

 
$
(91,467
)
 
$
38,108

 
$
177,051

Accrued compensation and  related liabilities
—

 
94,505

 
42,866

 
12,264

 
—

 
149,635

Accrued liabilities
—

 
191,819

 
219,303

 
18,687

 
—

 
429,809

Liabilities held for sale
—

 
11,457

 
—

 
—

 
—

 
11,457

Debt due within one year
—

 
362,900

 
—

 
—

 
—

 
362,900

Total current liabilities
(465,247
)
 
(936,050
)
 
2,554,557

 
(60,516
)
 
38,108

 
1,130,852

 
 
 
 
 
 
 
 
 
 
 
 
Long-term liabilities:
 

 
 

 
 

 
 

 
 

 
 

Debt due after one year
—

 
2,770,234

 
—

 
390

 
—

 
2,770,624

Deferred income taxes
—

 
—

 
436,613

 
32,715

 
—

 
469,328

Accrued liabilities
—

 
28,384

 
140,923

 
1,153

 
—

 
170,460

Total long-term liabilities
—

 
2,798,618

 
577,536

 
34,258

 
—

 
3,410,412

Total shareholders' equity
2,302,793

 
4,534,211

 
4,706,344

 
2,221,360

 
(11,461,915
)
 
2,302,793

 
$
1,837,546

 
$
6,396,779

 
$
7,838,437

 
$
2,195,102

 
$
(11,423,807
)
 
$
6,844,057


(1) Investments include inter company investment activity. Corp 2 and Subsidiary Guarantors hold $29.0 million and $135.8 million, respectively, of the $164.8 million consolidated net investments.

Condensed Consolidating Statement of Cash Flows
Year Ended May 31, 2018
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net income
$
842,586

 
$
342,851

 
$
470,215

 
$
27,568

 
$
(840,634
)
 
$
842,586

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 
Depreciation
—

 
143,301

 
58,206

 
13,969

 
—

 
215,476

Amortization of intangible assets
—

 
50,231

 
5,102

 
8,607

 
—

 
63,940

Stock-based compensation
112,835

 
—

 
—

 
—

 
—

 
112,835

Gain on sale of business
—

 
(111,921
)
 
15,521

 
—

 

 
(96,400
)
Deferred income taxes
—

 
(80,328
)
 
(38,906
)
 
(61
)
 
—

 
(119,295
)
Changes in current assets and liabilities, net of acquisitions of businesses:
 
 
 
 
 
 
 
 
 
 
 
Accounts receivable, net
—

 
(76,945
)
 
17,129

 
(6,451
)
 
—

 
(66,267
)
Inventories, net
—

 
15,080

 
(17,377
)
 
360

 
(1,386
)
 
(3,323
)
Uniforms and other rental items in service
—

 
(51,682
)
 
(3,483
)
 
(8,730
)
 
(404
)
 
(64,299
)
Prepaid expenses and other current assets
—

 
3,676

 
(19,421
)
 
219

 
—

 
(15,526
)
Accounts payable
—

 
(60,978
)
 
108,724

 
(12,310
)
 
(161
)
 
35,275

Accrued compensation and related liabilities
—

 
9,522

 
(18,595
)
 
(319
)
 
—

 
(9,392
)
Accrued liabilities and other
—

 
(133,671
)
 
173,905

 
2,234

 
—

 
42,468

Income taxes, current
—

 
11,874

 
15,898

 
(1,690
)
 
—

 
26,082

Net cash provided by (used in) operating activities
955,421

 
61,010

 
766,918

 
23,396

 
(842,585
)
 
964,160

 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
(192,668
)
 
(65,211
)
 
(13,820
)
 
—

 
(271,699
)
Proceeds from redemption of marketable securities
—

 
13,589

 
(1,189
)
 
167,457

 
—

 
179,857

Purchase of marketable securities and investments
—

 
9,789

 
(24,636
)
 
(143,861
)
 
5,000

 
(153,708
)
Proceeds from sale of business
—

 
127,835

 
—

 
—

 
—

 
127,835

Acquisitions of businesses, net of cash acquired
—

 
(19,346
)
 
—

 
—

 
—

 
(19,346
)
Other, net
(694,429
)
 
599,192

 
(633,629
)
 
(107,356
)
 
837,585

 
1,363

Net cash (used in) provided by investing activities
(694,429
)
 
538,391

 
(724,665
)
 
(97,580
)
 
842,585

 
(135,698
)
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Payments of commercial paper, net
—

 
(50,500
)
 
—

 
—

 
—

 
(50,500
)
Repayment of debt
—

 
(550,000
)
 
—

 
—

 
—

 
(550,000
)
Proceeds from exercise of stock-based
   compensation awards
41,848

 
—

 
—

 
—

 
—

 
41,848

Dividends paid
(175,521
)
 
—

 
—

 
(68
)
 
—

 
(175,589
)
Repurchase of common stock
(127,319
)
 
—

 
—

 
—

 
—

 
(127,319
)
Other, net
—

 
(3,060
)
 
755

 
(275
)
 
—

 
(2,580
)
Net cash (used in) provided by financing activities
(260,992
)
 
(603,560
)
 
755

 
(343
)
 
—

 
(864,140
)
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
—

 
—

 
—

 
5,136

 
—

 
5,136

Net (decrease) increase in cash and cash equivalents
—

 
(4,159
)
 
43,008

 
(69,391
)
 
—

 
(30,542
)
Cash and cash equivalents at beginning of year
—

 
48,658

 
17,302

 
103,306

 
—

 
169,266

Cash and cash equivalents at end of year
$
—

 
$
44,499

 
$
60,310

 
$
33,915

 
$
—

 
$
138,724

Condensed Consolidating Statement of Cash Flows
Year Ended May 31, 2017
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net income
$
480,708

 
$
152,916

 
$
315,565

 
$
9,143

 
$
(477,624
)
 
$
480,708

Adjustments to reconcile net income to net cash
    provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 
Depreciation
—

 
117,578

 
43,660

 
10,327

 
—

 
171,565

Amortization of intangible assets
—

 
21,496

 
1,178

 
2,356

 
—

 
25,030

Stock-based compensation
88,868

 
—

 
—

 
—

 
—

 
88,868

Gain on Storage
—

 
(1,460
)
 
—

 
—

 
—

 
(1,460
)
Gain on Shred-it
—

 
(23,516
)
 
—

 
(1,941
)
 
—

 
(25,457
)
Asset impairment charge
—

 
20,966

 
—

 
2,365

 
—

 
23,331

G&K Services, Inc. transaction and integration
    costs
—

 
26,453

 
—

 
4,992

 
—

 
31,445

Short-term debt financing fees included in
    net income
—

 
17,062

 
—

 
—

 
—

 
17,062

Settlement of cash flow hedges
—

 
30,194

 
—

 
—

 
—

 
30,194

Deferred income taxes
—

 
(26,289
)
 
26,058

 
4,133

 
—

 
3,902

Changes in current assets and liabilities, net of
   acquisitions of businesses:
 
 
 
 
 
 
 
 
 
 
 
Accounts receivable, net
—

 
(50,012
)
 
(40,380
)
 
(3,165
)
 
—

 
(93,557
)
Inventories, net
—

 
7,787

 
(2,317
)
 
(3,679
)
 
(2,459
)
 
(668
)
Uniforms and other rental items in service
—

 
(4,951
)
 
(5,011
)
 
1,959

 
(729
)
 
(8,732
)
Prepaid expenses and other current assets
—

 
21,119

 
2,775

 
307

 
—

 
24,201

Accounts payable
—

 
1,765,713

 
(1,509,215
)
 
(242,875
)
 
103

 
13,726

Accrued compensation and related liabilities
—

 
(7,498
)
 
19,815

 
1,337

 
—

 
13,654

Accrued liabilities and other
—

 
2,813

 
(5,675
)
 
2,361

 
—

 
(501
)
Income taxes, current
—

 
(5,205
)
 
(22,445
)
 
(1,774
)
 
—

 
(29,424
)
Net cash provided by (used in) operating activities
569,576

 
2,065,166

 
(1,175,992
)
 
(214,154
)
 
(480,709
)
 
763,887

 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
(153,963
)
 
(102,682
)
 
(16,672
)
 
—

 
(273,317
)
Proceeds from redemption of marketable securities
—

 
—

 
—

 
218,324

 
—

 
218,324

Purchase of marketable securities and investments
—

 
18,150

 
(797,559
)
 
598,344

 
—

 
(181,065
)
Proceeds from sale of Storage
—

 
2,400

 
—

 
—

 
—

 
2,400

Proceeds from sale of Shred-it
—

 
23,935

 
—

 
1,941

 
—

 
25,876

Acquisitions of businesses, net of cash acquired
—

 
(2,112,015
)
 
—

 
9,644

 
—

 
(2,102,371
)
Other, net
(438,344
)
 
(1,562,294
)
 
2,039,740

 
(520,007
)
 
480,709

 
(196
)
Net cash (used in) provided by investing activities
(438,344
)
 
(3,783,787
)
 
1,139,499

 
291,574

 
480,709

 
(2,310,349
)
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of commercial paper, net
—

 
50,500

 
—

 
—

 
—

 
50,500

Proceeds from the issuance of debt, net
—

 
1,932,229

 
(2,000
)
 
2,000

 
—

 
1,932,229

Repayment of debt
—

 
(250,000
)
 
—

 
—

 
—

 
(250,000
)
Payment of short-term debt financing fees
—

 
(17,062
)
 
—

 
—

 
—

 
(17,062
)
Proceeds from exercise of stock-based compensation awards
31,870

 
—

 
—

 
—

 
—

 
31,870

Dividends paid
(142,378
)
 
—

 
—

 
(55
)
 
—

 
(142,433
)
Repurchase of common stock
(20,724
)
 
—

 
—

 
—

 
—

 
(20,724
)
Other, net
—

 
(6,282
)
 
404

 
—

 
—

 
(5,878
)
Net cash (used in) provided by financing activities
(131,232
)
 
1,709,385

 
(1,596
)
 
1,945

 
—

 
1,578,502

 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
—

 
—

 
—

 
(2,131
)
 
—

 
(2,131
)
Net (decrease) increase in cash and cash equivalents
—

 
(9,236
)
 
(38,089
)
 
77,234

 
—

 
29,909

Cash and cash equivalents at beginning of year
—

 
57,894

 
55,391

 
26,072

 
—

 
139,357

Cash and cash equivalents at end of year
$
—

 
$
48,658

 
$
17,302

 
$
103,306

 
$
—

 
$
169,266


Condensed Consolidating Statement of Cash Flows
Year Ended May 31, 2016
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net income
$
693,520

 
$
400,191

 
$
296,608

 
$
3,905

 
$
(700,704
)
 
$
693,520

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 
Depreciation
—

 
102,443

 
37,883

 
9,365

 
—

 
149,691

Amortization of intangible assets
—

 
14,830

 
304

 
454

 
—

 
15,588

Stock-based compensation
79,293

 
—

 
—

 
—

 
—

 
79,293

Gain on Storage transactions
—

 
(12,547
)
 
—

 
(3,239
)
 
—

 
(15,786
)
(Gain) loss on Shred-it
—

 
(366,460
)
 
—

 
12,389

 
—

 
(354,071
)
Deferred income taxes
—

 
(83,648
)
 
22,025

 
2,321

 
—

 
(59,302
)
Changes in current assets and liabilities,
   net of acquisitions of businesses:

 
 
 
 
 
 
 
 
 
 
Accounts receivable, net
—

 
(30,381
)
 
(20,196
)
 
(2,185
)
 
—

 
(52,762
)
Inventories, net
—

 
(23,917
)
 
2,011

 
(2,454
)
 
6,443

 
(17,917
)
Uniforms and other rental items in service
—

 
(3,193
)
 
(2,032
)
 
(1,840
)
 
759

 
(6,306
)
Prepaid expenses and other current assets
—

 
(167
)
 
(914
)
 
116

 
—

 
(965
)
Accounts payable
—

 
(487,582
)
 
491,918

 
(4,884
)
 
(16
)
 
(564
)
Accrued compensation and related liabilities
—

 
9,838

 
3,103

 
571

 
—

 
13,512

Accrued liabilities and other
—

 
(3,790
)
 
25,625

 
155

 
724

 
22,714

Income taxes, current
—

 
895

 
(1,118
)
 
(577
)
 
—

 
(800
)
Net cash provided by (used in) operating activities
772,813

 
(483,488
)
 
855,217

 
14,097

 
(692,794
)
 
465,845

 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
(162,075
)
 
(100,380
)
 
(12,930
)
 
—

 
(275,385
)
Proceeds from redemption of marketable securities
—

 
—

 
—

 
434,179

 
—

 
434,179

Purchase of marketable securities and investments
—

 
(3,333
)
 
(12,085
)
 
(488,765
)
 
10,037

 
(494,146
)
Proceeds from Storage transactions, net of cash contributed
—

 
32,099

 
—

 
3,239

 
—

 
35,338

Proceeds from sale of Shred-it
—

 
568,223

 
—

 
12,614

 
—

 
580,837

Acquisitions of businesses, net of cash acquired
—

 
(130,786
)
 
—

 
(25,793
)
 
—

 
(156,579
)
Other, net
94,344

 
169,821

 
(945,406
)
 
1,897

 
683,481

 
4,137

Net cash provided by (used in) investing activities
94,344

 
473,949

 
(1,057,871
)
 
(75,559
)
 
693,518

 
128,381

 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Proceeds from the issuance of debt
—

 
—

 
(165
)
 
165

 
—

 
—

Repayment of debt
—

 
(9,151
)
 
10,224

 
(365
)
 
(724
)
 
(16
)
Proceeds from exercise of stock-based compensation awards
28,226

 
—

 
—

 
—

 
—

 
28,226

Dividends paid
(115,232
)
 
—

 
—

 
(41
)
 
—

 
(115,273
)
Repurchase of common stock
(780,151
)
 
—

 
—

 
—

 
—

 
(780,151
)
Other, net
—

 
1,952

 
(730
)
 
(732
)
 
—

 
490

Net cash (used in) provided by financing activities
(867,157
)
 
(7,199
)
 
9,329

 
(973
)
 
(724
)
 
(866,724
)
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
—

 
—

 
—

 
(5,218
)
 
—

 
(5,218
)
Net decrease in cash and cash equivalents
—

 
(16,738
)
 
(193,325
)
 
(67,653
)
 
—

 
(277,716
)
Cash and cash equivalents at beginning of year
—

 
74,632

 
248,716

 
93,725

 
—

 
417,073

Cash and cash equivalents at end of year
$
—

 
$
57,894

 
$
55,391

 
$
26,072

 
$
—

 
$
139,357