Supplemental Guarantor Information (Tables)

3 Months Ended

Aug. 31, 2018

Condensed Financial Information Disclosure [Abstract]

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