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 senior notes outstanding as of August 31, 2018, 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 2018, the Company sold Discontinued Services (see Note 12) previously included in Cintas Corporation and Corp. 2. The sale of Discontinued Services has been reflected as discontinued operations 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 August 31, 2018

(In thousands)



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

Revenue:
Uniform rental and facility services	$	—		$	1,139,129		$	183,163		$	99,683		$	(47,037	)	$	1,374,938
Other	—			491,290			43			24,332			(192,628		)	323,037
Equity in net income of affiliates	212,547			—			—			—			(212,547		)	—
Total revenue	212,547			1,630,419			183,206			124,015			(452,212		)	1,697,975

Costs and expenses (income):
Cost of uniform rental and facility services	—			643,741			109,550			64,013			(70,851		)	746,453
Cost of other	—			341,333			(22,029		)	18,142			(160,636		)	176,810
Selling and administrative expenses	—			544,910			(64,621		)	34,363			(10,018		)	504,634
G&K Services, Inc. integration expenses	—			2,676			1,863			311			—			4,850
Operating income	212,547			97,759			158,443			7,186			(210,707		)	265,228

Interest income	—			(209		)	(272		)	(16		)	1			(496		)
Interest expense (income)	—			24,661			(362		)	5			—			24,304

Income before income taxes	212,547			73,307			159,077			7,197			(210,708		)	241,420
Income taxes	—			10,663			16,044			2,187			(21		)	28,873
Income from continuing operations	212,547			62,644			143,033			5,010			(210,687		)	212,547

Loss from discontinued operations, net of tax	(32		)	(32		)	—			—			32			(32		)

Net income	$	212,515		$	62,612		$	143,033		$	5,010		$	(210,655	)	$	212,515

Consolidating Condensed Income Statement

Three Months Ended August 31, 2017

(In thousands)



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

Revenue:
Uniform rental and facility services	$	—	$	1,099,869		$	164,895		$	96,595		$	(49,575	)	$	1,311,784
Other	—		427,302			307			20,308			(148,198		)	299,719
Equity in net income of affiliates	161,108		—			—			—			(161,108		)	—
Total revenue	161,108		1,527,171			165,202			116,903			(358,881		)	1,611,503

Costs and expenses (income):
Cost of uniform rental and facility services	—		622,148			99,019			60,517			(74,821		)	706,863
Cost of other	—		288,919			(19,669		)	14,735			(118,698		)	165,287
Selling and administrative expenses	—		510,955			(47,538		)	29,906			(7,040		)	486,283
G&K Services, Inc. integration expenses	—		1,521			2,435			15			—			3,971
Operating income	161,108		103,628			130,955			11,730			(158,322		)	249,099

Interest income	—		(31		)	(99		)	(167		)	—			(297		)
Interest expense (income)	—		30,561			(139		)	(105		)	—			30,317

Income before income taxes	161,108		73,098			131,193			12,002			(158,322		)	219,079
Income taxes	—		19,570			35,123			3,297			(19		)	57,971
Income from continuing operations	161,108		53,528			96,070			8,705			(158,303		)	161,108

Income (loss) from discontinued operations, net of tax	56,103		65,002			(8,899		)	—			(56,103		)	56,103

Net income	$	217,211	$	118,530		$	87,171		$	8,705		$	(214,406	)	$	217,211

Consolidating Condensed Statement of Comprehensive Income

Three Months Ended August 31, 2018

(In thousands)



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

Net income	$	212,515		$	62,612		$	143,033	$	5,010		$	(210,655	)	$	212,515

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(3,019		)	—			—		(3,019		)	3,019			(3,019		)
Change in fair value of interest rate lock agreements	(3,168		)	(3,168		)	—		—			3,168			(3,168		)
Amortization of interest rate lock agreements	(295		)	(295		)	—		—			295			(295		)

Other comprehensive loss	(6,482		)	(3,463		)	—		(3,019		)	6,482			(6,482		)

Comprehensive income	$	206,033		$	59,149		$	143,033	$	1,991		$	(204,173	)	$	206,033

Consolidating Condensed Statement of Comprehensive Income

Three Months Ended August 31, 2017

(In thousands)



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

Net income	$	217,211		$	118,530		$	87,171	$	8,705	$	(214,406	)	$	217,211

Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	35,184			—			—		35,184		(35,184		)	35,184
Amortization of interest rate lock agreements	(172		)	(172		)	—		—		172			(172		)
Change in fair value of available-for-sale securities	20			—			—		20		(20		)	20

Other comprehensive income (loss)	35,032			(172		)	—		35,204		(35,032		)	35,032

Comprehensive income	$	252,243		$	118,358		$	87,171	$	43,909	$	(249,438	)	$	252,243

Consolidating Condensed Balance Sheet

As of August 31, 2018

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors		Non- Guarantors			Eliminations			Cintas Corporation Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	46,600		$	48,565	$	23,191		$	—		$	118,356
Accounts receivable, net	—			652,912			117,386		67,894			—			838,192
Inventories, net	—			251,523			36,144		15,321			782			303,770
Uniforms and other rental items in service	—			595,908			89,399		56,611			(17,210		)	724,708
Income taxes, current	—			524			788		5,566			—			6,878
Prepaid expenses and other current assets	—			73,940			37,288		1,246			—			112,474
Total current assets	—			1,621,407			329,570		169,829			(16,428		)	2,104,378

Property and equipment, net	—			911,174			372,734		110,726			—			1,394,634

Investments ⁽¹⁾	321,083			3,594,114			956,474		1,718,070			(6,409,479		)	180,262
Goodwill	—			—			2,584,732		265,462			(112		)	2,850,082
Service contracts, net	—			460,728			—		75,137			—			535,865
Other assets, net	2,559,638			195,144			4,446,682		5,349			(6,984,830		)	221,983
	$	2,880,721		$	6,782,567		$	8,690,192	$	2,344,573		$	(13,410,849	)	$	7,287,204

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	(465,247	)	$	(1,688,023	)	$	2,363,714	$	(34,682	)	$	38,249		$	214,011
Accrued compensation and related liabilities	—			62,650			13,896		7,762			—			84,308
Accrued liabilities	—			103,729			258,085		18,961			—			380,775
Total current liabilities	(465,247		)	(1,521,644		)	2,635,695		(7,959		)	38,249			679,094

Long-term liabilities:
Debt due after one year	—			2,535,469			—		390			—			2,535,859
Deferred income taxes	—			284,201			106,684		33,459			—			424,344
Accrued liabilities	—			63,073			222,286		16,580			—			301,939
Total long-term liabilities	—			2,882,743			328,970		50,429			—			3,262,142

Total shareholders’ equity	3,345,968			5,421,468			5,725,527		2,302,103			(13,449,098		)	3,345,968
	$	2,880,721		$	6,782,567		$	8,690,192	$	2,344,573		$	(13,410,849	)	$	7,287,204

⁽¹⁾Investments include inter-company investment activity. Corp 2 and Subsidiary Guarantors hold $16.1 million and $164.2 million, respectively, of the $180.3 million consolidated net investments.

Consolidating Condensed 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.

Consolidating Condensed Statement of Cash Flows

Three Months Ended August 31, 2018

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Cash flows from operating activities:
Net income	$	212,515		$	62,612		$	143,033		$	5,010		$	(210,655	)	$	212,515
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	—			33,866			15,427			3,452			—			52,745
Amortization of intangible assets and capitalized contract costs	—			30,156			1,278			2,116			—			33,550
Stock-based compensation	46,172			—			—			—			—			46,172
Deferred income taxes	—			5,388			2,122			1,512			—			9,022
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(12,891		)	3,381			(5,541		)	—			(15,051		)
Inventories, net	—			(37,207		)	2,700			660			(782		)	(34,629		)
Uniforms and other rental items in service	—			(10,800		)	(7,904		)	(2,936		)	(1,379		)	(23,019		)
Prepaid expenses and other current assets and other assets, net	—			(25,060		)	(21,838		)	(32		)	—			(46,930		)
Accounts payable	—			41,784			(37,657		)	(4,758		)	302			(329		)
Accrued compensation and related liabilities	—			(41,910		)	(10,982		)	(3,294		)	—			(56,186		)
Accrued liabilities and other	—			2,305			(26,295		)	(3,566		)	—			(27,556		)
Income taxes, current	—			5,022			8,474			(815		)	—			12,681
Net cash provided by (used in) operating activities	258,687			53,265			71,739			(8,192		)	(212,514		)	162,985

Cash flows from investing activities:
Capital expenditures	—			(43,966		)	(17,979		)	(2,583		)	—			(64,528		)
Proceeds from redemption of marketable securities and investments	—			1,554			4			—			—			1,558
Acquisitions of businesses	—			(7,613		)	—			—			—			(7,613		)
Other, net	(146,731		)	(4,048		)	(65,509		)	2,582			213,504			(202		)
Net cash used in investing activities	(146,731		)	(54,073		)	(83,484		)	(1		)	213,504			(70,785		)

Cash flows from financing activities:
Proceeds from exercise of stock-based compensation awards	27,512			—			—			—			—			27,512
Repurchase of common stock	(139,468		)	—			—			—			—			(139,468		)
Other, net	—			2,909			—			(2,471		)	(990		)	(552		)
Net cash (used in) provided by financing activities	(111,956		)	2,909			—			(2,471		)	(990		)	(112,508		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			(60		)	—			(60		)

Net increase (decrease) in cash and cash equivalents	—			2,101			(11,745		)	(10,724		)	—			(20,368		)
Cash and cash equivalents at beginning of period	—			44,499			60,310			33,915			—			138,724
Cash and cash equivalents at end of period	$	—		$	46,600		$	48,565		$	23,191		$	—		$	118,356

Consolidating Condensed Statement of Cash Flows

Three Months Ended August 31, 2017

(In thousands)



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

Cash flows from operating activities:
Net income	$	217,211		$	118,530		$	87,171		$	8,705		$	(214,406	)	$	217,211
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	—			32,658			17,613			3,297			—			53,568
Amortization of intangible assets	—			11,722			1,273			1,946			—			14,941
Stock-based compensation	28,630			—			—			—			—			28,630
(Gain) loss on sale of business	—			(115,787		)	15,518			—			—			(100,269		)
Deferred income taxes	—			—			27,468			(2,530		)	—			24,938
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(32,847		)	37,443			4,359			—			8,955
Inventories, net	—			7,262			(11,826		)	122			(1,385		)	(5,827		)
Uniforms and other rental items in service	—			(16,077		)	818			2,480			(279		)	(13,058		)
Prepaid expenses and other current assets	—			966			(17,353		)	376			—			(16,011		)
Accounts payable	—			137,191			(110,445		)	(8,909		)	(153		)	17,684
Accrued compensation and related liabilities	—			(15,841		)	(14,403		)	(62		)	—			(30,306		)
Accrued liabilities and other	—			(19,869		)	6,704			(3,053		)	—			(16,218		)
Income taxes, current	—			20,069			49,407			652			—			70,128
Net cash provided by operating activities	245,841			127,977			89,388			7,383			(216,223		)	254,366

Cash flows from investing activities:
Capital expenditures	—			(36,267		)	(31,327		)	5,077			—			(62,517		)
Proceeds from redemption of marketable securities	—			12,400			—			52,856			—			65,256
Purchase of marketable securities and investments	—			2,724			(12,223		)	(50,523		)	2,000			(58,022		)
Proceeds from sale of business	—			128,511			—			—			—			128,511
Acquisitions of businesses, net of cash acquired	—			(302		)	—			—			—			(302		)
Other, net	(228,057		)	57,686			(23,492		)	(20,664		)	214,223			(304		)
Net cash (used in) provided by investing activities	(228,057		)	164,752			(67,042		)	(13,254		)	216,223			72,622

Cash flows from financing activities:
Issuance of commercial paper, net	—			(43,000		)	—			—			—			(43,000		)
Repayment of debt	—			(250,000		)	—			—			—			(250,000		)
Proceeds from exercise of stock-based compensation awards	17,256			—			—			—			—			17,256
Repurchase of common stock	(35,040		)	—			—			—			—			(35,040		)
Other, net	—			(478		)	(171		)	—			—			(649		)
Net cash used in financing activities	(17,784		)	(293,478		)	(171		)	—			—			(311,433		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			6,593			—			6,593

Net (decrease) increase in cash and cash equivalents	—			(749		)	22,175			722			—			22,148
Cash and cash equivalents at beginning of period	—			48,658			17,302			103,306			—			169,266
Cash and cash equivalents at end of period	$	—		$	47,909		$	39,477		$	104,028		$	—		$	191,414