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 $173.5 million aggregate principal amount of commercial paper and the $2,550.0 million aggregate principal amount of senior notes outstanding as of November 30, 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 November 30, 2018

(In thousands)



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

Revenue:
Uniform rental and facility services	$	—	$	1,134,118		$	182,876		$	101,830		$	(28,046	)	$	1,390,778
Other	—		522,081			50			25,918			(220,559		)	327,490
Equity in net income of affiliates	242,994		—			—			—			(242,994		)	—
Total revenue	242,994		1,656,199			182,926			127,748			(491,599		)	1,718,268

Costs and expenses (income):
Cost of uniform rental and facility services	—		640,859			111,555			65,316			(56,611		)	761,119
Cost of other	—		375,764			(27,133		)	19,319			(185,959		)	181,991
Selling and administrative expenses	—		536,276			(68,617		)	32,559			(8,547		)	491,671
G&K Services, Inc. integration expenses	—		5,973			1,270			604			—			7,847
Operating income	242,994		97,327			165,851			9,950			(240,482		)	275,640

Gain on sale of a cost method investment	—		—			69,373			—			—			69,373

Interest income	—		(294		)	(93		)	(5		)	1			(391		)
Interest expense (income)	—		25,046			(173		)	7			—			24,880

Income before income taxes	242,994		72,575			235,490			9,948			(240,483		)	320,524
Income taxes	—		19,166			55,788			2,613			(37		)	77,530
Income from continuing operations	242,994		53,409			179,702			7,335			(240,446		)	242,994

Income from discontinued operations, net of tax	19		19			—			—			(19		)	19

Net income	$	243,013	$	53,428		$	179,702		$	7,335		$	(240,465	)	$	243,013

Consolidating Condensed Income Statement

Three Months Ended November 30, 2017

(In thousands)



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

Revenue:
Uniform rental and facility services	$	—		$	1,086,667		$	170,320		$	100,933		$	(49,882	)	$	1,308,038
Other	—			435,539			(313		)	21,982			(158,805		)	298,403
Equity in net income of affiliates	137,737			—			—			—			(137,737		)	—
Total revenue	137,737			1,522,206			170,007			122,915			(346,424		)	1,606,441

Costs and expenses (income):
Cost of uniform rental and facility services	—			628,123			105,954			65,220			(75,337		)	723,960
Cost of other	—			302,065			(25,046		)	15,438			(126,345		)	166,112
Selling and administrative expenses	—			528,369			(85,417		)	31,211			(6,079		)	468,084
G&K Services, Inc. integration expenses	—			4,192			8,319			563			—			13,074
Operating income	137,737			59,457			166,197			10,483			(138,663		)	235,211

Interest income	—			(45		)	(59		)	(187		)	—			(291		)
Interest expense (income)	—			29,444			(313		)	(2		)	—			29,129

Income before income taxes	137,737			30,058			166,569			10,672			(138,663		)	206,373
Income taxes	—			11,449			54,414			2,798			(25		)	68,636
Income from continuing operations	137,737			18,609			112,155			7,874			(138,638		)	137,737

Loss from discontinued operations, net of tax	(628		)	(628		)	—			—			628			(628		)

Net income	$	137,109		$	17,981		$	112,155		$	7,874		$	(138,010	)	$	137,109

Consolidating Condensed Income Statement

Six Months Ended November 30, 2018

(In thousands)



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

Revenue:
Uniform rental and facility services	$	—		$	2,273,247		$	366,039		$	201,513		$	(75,083	)	$	2,765,716
Other	—			1,013,371			93			50,250			(413,187		)	650,527
Equity in net income of affiliates	455,541			—			—			—			(455,541		)	—
Total revenue	455,541			3,286,618			366,132			251,763			(943,811		)	3,416,243

Costs and expenses (income):
Cost of uniform rental and facility services	—			1,284,600			221,105			129,329			(127,462		)	1,507,572
Cost of other	—			717,097			(49,162		)	37,461			(346,595		)	358,801
Selling and administrative expenses	—			1,081,186			(133,238		)	66,922			(18,565		)	996,305
G&K Services, Inc. integration expenses	—			8,649			3,133			915			—			12,697
Operating income	455,541			195,086			324,294			17,136			(451,189		)	540,868

Gain on sale of a cost method investment	—			—			69,373			—			—			69,373

Interest income	—			(503		)	(365		)	(21		)	2			(887		)
Interest expense (income)	—			49,707			(535		)	12			—			49,184

Income before income taxes	455,541			145,882			394,567			17,145			(451,191		)	561,944
Income taxes	—			29,829			71,832			4,800			(58		)	106,403
Income from continuing operations	455,541			116,053			322,735			12,345			(451,133		)	455,541

Loss from discontinued operations, net of tax	(13		)	(13		)	—			—			13			(13		)

Net income	$	455,528		$	116,040		$	322,735		$	12,345		$	(451,120	)	$	455,528

Consolidating Condensed Income Statement

Six Months Ended November 30, 2017

(In thousands)



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

Revenue:
Uniform rental and facility services	$	—	$	2,186,536		$	335,215		$	197,528		$	(99,457	)	$	2,619,822
Other	—		862,841			(6		)	42,290			(307,003		)	598,122
Equity in net income of affiliates	298,845		—			—			—			(298,845		)	—
Total revenue	298,845		3,049,377			335,209			239,818			(705,305		)	3,217,944

Costs and expenses (income):
Cost of uniform rental and facility services	—		1,250,271			204,973			125,737			(150,158		)	1,430,823
Cost of other	—		590,984			(44,715		)	30,173			(245,043		)	331,399
Selling and administrative expenses	—		1,039,324			(132,955		)	61,117			(13,119		)	954,367
G&K Services, Inc. integration expenses	—		5,713			10,754			578			—			17,045
Operating income	298,845		163,085			297,152			22,213			(296,985		)	484,310

Interest income	—		(76		)	(158		)	(354		)	—			(588		)
Interest expense (income)	—		60,005			(452		)	(107		)	—			59,446

Income before income taxes	298,845		103,156			297,762			22,674			(296,985		)	425,452
Income taxes	—		31,019			89,537			6,095			(44		)	126,607
Income from continuing operations	298,845		72,137			208,225			16,579			(296,941		)	298,845

Income (loss) from discontinued operations, net of tax	55,475		64,374			(8,899		)	—			(55,475		)	55,475

Net income	$	354,320	$	136,511		$	199,326		$	16,579		$	(352,416	)	$	354,320

Consolidating Condensed Statement of Comprehensive Income

Three Months Ended November 30, 2018

(In thousands)



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

Net income	$	243,013		$	53,428		$	179,702	$	7,335		$	(240,465	)	$	243,013

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(10,623		)	—			—		(10,623		)	10,623			(10,623		)
Change in fair value of interest rate lock agreements	4,921			4,921			—					(4,921		)	4,921
Amortization of interest rate lock agreements	(294		)	(294		)	—		—			294			(294		)

Other comprehensive (loss) income	(5,996		)	4,627			—		(10,623		)	5,996			(5,996		)

Comprehensive income (loss)	$	237,017		$	58,055		$	179,702	$	(3,288	)	$	(234,469	)	$	237,017

Consolidating Condensed Statement of Comprehensive Income

Three Months Ended November 30, 2017

(In thousands)



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

Net income	$	137,109		$	17,981		$	112,155	$	7,874		$	(138,010	)	$	137,109

Other comprehensive loss, net of tax:
Foreign currency translation adjustments	(11,374		)	—			—		(11,374		)	11,374			(11,374		)
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 loss	(11,566		)	(172		)	—		(11,394		)	11,566			(11,566		)

Comprehensive income (loss)	$	125,543		$	17,809		$	112,155	$	(3,520	)	$	(126,444	)	$	125,543

Consolidating Condensed Statement of Comprehensive Income

Six Months Ended November 30, 2018

(In thousands)



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

Net income	$	455,528		$	116,040		$	322,735	$	12,345		$	(451,120	)	$	455,528

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(13,642		)	—			—		(13,642		)	13,642			(13,642		)
Change in fair value of interest rate lock agreements	1,753			1,753			—		—			(1,753		)	1,753
Amortization of interest rate lock agreements	(589		)	(589		)	—		—			589			(589		)

Other comprehensive (loss) income	(12,478		)	1,164			—		(13,642		)	12,478			(12,478		)

Comprehensive income (loss)	$	443,050		$	117,204		$	322,735	$	(1,297	)	$	(438,642	)	$	443,050

Consolidating Condensed Statement of Comprehensive Income

Six Months Ended November 30, 2017

(In thousands)



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

Net income	$	354,320		$	136,511		$	199,326	$	16,579	$	(352,416	)	$	354,320

Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	23,810			—			—		23,810		(23,810		)	23,810
Amortization of interest rate lock agreements	(344		)	(344		)	—		—		344			(344		)

Other comprehensive income (loss)	23,466			(344		)	—		23,810		(23,466		)	23,466

Comprehensive income	$	377,786		$	136,167		$	199,326	$	40,389	$	(375,882	)	$	377,786

Consolidating Condensed Balance Sheet

As of November 30, 2018

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors		Non- Guarantors			Eliminations			Cintas Corporation Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	47,771		$	9,759	$	30,949		$	—		$	88,479
Accounts receivable, net	—			689,606			143,378		71,078			—			904,062
Inventories, net	—			267,335			34,467		17,611			2,461			321,874
Uniforms and other rental items in service	—			624,589			90,914		59,701			(16,958		)	758,246
Income taxes, current	—			10,875			16,362		9,358			—			36,595
Prepaid expenses and other current assets	—			75,840			29,394		1,380			—			106,614
Total current assets	—			1,716,016			324,274		190,077			(14,497		)	2,215,870

Property and equipment, net	—			923,931			376,274		110,325			—			1,410,530

Investments ⁽¹⁾	321,083			3,596,134			957,740		1,718,070			(6,409,479		)	183,548
Goodwill	—			—			2,584,875		260,481			(112		)	2,845,244
Service contracts, net	—			449,590			—		71,915			—			521,505
Other assets, net	2,240,914			203,378			4,783,008		2,143			(7,001,057		)	228,386
	$	2,561,997		$	6,889,049		$	9,026,171	$	2,353,011		$	(13,425,145	)	$	7,405,083

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	(465,247	)	$	(1,828,417	)	$	2,495,759	$	(27,826	)	$	37,631		$	211,900
Accrued compensation and related liabilities	—			88,374			18,410		10,861			—			117,645
Accrued liabilities	—			87,221			504,186		20,234			—			611,641
Debt due within one year	—			173,500			—		—			—			173,500
Total current liabilities	(465,247		)	(1,479,322		)	3,018,355		3,269			37,631			1,114,686

Long-term liabilities:
Debt due after one year	—			2,536,018			—		390			—			2,536,408
Deferred income taxes	—			291,233			110,089		34,139			—			435,461
Accrued liabilities	—			61,597			213,289		16,398			—			291,284
Total long-term liabilities	—			2,888,848			323,378		50,927			—			3,263,153

Total shareholders’ equity	3,027,244			5,479,523			5,684,438		2,298,815			(13,462,776		)	3,027,244
	$	2,561,997		$	6,889,049		$	9,026,171	$	2,353,011		$	(13,425,145	)	$	7,405,083

⁽¹⁾Investments include inter-company investment activity. Corp 2 and Subsidiary Guarantors hold $18.1 million and $165.4 million, respectively, of the $183.5 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

Six Months Ended November 30, 2018

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Cash flows from operating activities:
Net income	$	455,528		$	116,040		$	322,735		$	12,345		$	(451,120	)	$	455,528
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	—			68,929			31,274			6,909			—			107,112
Amortization of intangible assets and capitalized contract costs	—			61,044			2,339			4,176			—			67,559
Stock-based compensation	74,784			—			—			—			—			74,784
Gain on sale of a cost method investment	—			—			(69,373		)	—			—			(69,373		)
Deferred income taxes	—			10,865			5,519			2,843			—			19,227
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(52,953		)	(20,151		)	(10,183		)	(2,461		)	(85,748		)
Inventories, net	—			(52,989		)	3,546			(2,153		)	(1,631		)	(53,227		)
Uniforms and other rental items in service	—			(39,481		)	(11,051		)	(7,152		)	—			(57,684		)
Prepaid expenses and other current assets and capitalized contract costs	—			(52,392		)	(5,570		)	(199		)	—			(58,161		)
Accounts payable	—			(98,465		)	90,324			6,502			(316		)	(1,955		)
Accrued compensation and related liabilities	—			(16,186		)	(6,468		)	1,685			—			(20,969		)
Accrued liabilities and other	—			(1,908		)	(9,983		)	(3,431		)	—			(15,322		)
Income taxes, current	—			(5,329		)	(7,109		)	(4,766		)	—			(17,204		)
Net cash provided by (used in) operating activities	530,312			(62,825		)	326,032			6,576			(455,528		)	344,567

Cash flows from investing activities:
Capital expenditures	—			(92,461		)	(37,357		)	(7,796		)	—			(137,614		)
Purchase of marketable securities and investments	—			(466		)	(13,605		)	—			—			(14,071		)
Proceeds from sale of a cost method investment	—			—			73,342			—			—			73,342
Acquisitions of businesses	—			(6,580		)	—			—			—			(6,580		)
Other, net	(54,795		)	(2,534		)	(398,963		)	(953		)	455,528			(1,717		)
Net cash used in investing activities	(54,795		)	(102,041		)	(376,583		)	(8,749		)	455,528			(86,640		)

Cash flows from financing activities:
Issuance of commercial paper, net	—			173,500			—			—			—			173,500
Proceeds from exercise of stock-based compensation awards	32,612			—			—			—			—			32,612
Repurchase of common stock	(508,129		)	—			—			—			—			(508,129		)
Other, net	—			(5,362		)	—			—			—			(5,362		)
Net cash (used in) provided by financing activities	(475,517		)	168,138			—			—			—			(307,379		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			(793		)	—			(793		)

Net increase (decrease) in cash and cash equivalents	—			3,272			(50,551		)	(2,966		)	—			(50,245		)
Cash and cash equivalents at beginning of period	—			44,499			60,310			33,915			—			138,724
Cash and cash equivalents at end of period	$	—		$	47,771		$	9,759		$	30,949		$	—		$	88,479

Consolidating Condensed Statement of Cash Flows

Six Months Ended November 30, 2017

(In thousands)



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

Cash flows from operating activities:
Net income	$	354,320		$	136,511		$	199,326		$	16,579		$	(352,416	)	$	354,320
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	—			65,942			34,789			6,847			—			107,578
Amortization of intangible assets	—			24,522			2,547			4,192			—			31,261
Stock-based compensation	55,204			—			—			—			—			55,204
(Gain) loss on sale of business	—			(114,581		)	15,521			—			—			(99,060		)
Deferred income taxes	—			—			40,555			1,607			—			42,162
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(42,881		)	20,790			(2,709		)	—			(24,800		)
Inventories, net	—			17,728			(13,863		)	115			(1,385		)	2,595
Uniforms and other rental items in service	—			(29,520		)	(112		)	(3,305		)	(357		)	(33,294		)
Prepaid expenses and other current assets	—			(5,428		)	(13,609		)	464			—			(18,573		)
Accounts payable	—			155,461			(153,831		)	(10,176		)	(160		)	(8,706		)
Accrued compensation and related liabilities	—			6,341			(39,311		)	(3,510		)	—			(36,480		)
Accrued liabilities and other	—			(26,847		)	26,373			(1,466		)	—			(1,940		)
Income taxes, current	—			32,963			(22,794		)	(1,427		)	—			8,742
Net cash provided by operating activities	409,524			220,211			96,381			7,211			(354,318		)	379,009

Cash flows from investing activities:
Capital expenditures	—			(90,497		)	(36,875		)	(5,094		)	—			(132,466		)
Proceeds from redemption of marketable securities	—			12,400			—			87,859			—			100,259
Purchase of marketable securities and investments	—			5,510			(20,064		)	(87,323		)	2,000			(99,877		)
Proceeds from sale of business	—			127,835			—			—			—			127,835
Acquisitions of businesses, net of cash acquired	—			(1,099		)	—			—			—			(1,099		)
Other, net	(402,385		)	21,470			26,771			956			352,318			(870		)
Net cash (used in) provided by investing activities	(402,385		)	75,619			(30,168		)	(3,602		)	354,318			(6,218		)

Cash flows from financing activities:
Payments of commercial paper, net	—			(50,500		)	—			—			—			(50,500		)
Repayment of debt	—			(250,000		)	—			—			—			(250,000		)
Proceeds from exercise of stock-based compensation awards	28,558			—			—			—			—			28,558
Repurchase of common stock	(35,697		)	—			—			—			—			(35,697		)
Other, net	—			(1,862		)	—			(20		)	—			(1,882		)
Net cash used in financing activities	(7,139		)	(302,362		)	—			(20		)	—			(309,521		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			3,466			—			3,466

Net (decrease) increase in cash and cash equivalents	—			(6,532		)	66,213			7,055			—			66,736
Cash and cash equivalents at beginning of period	—			48,658			17,302			103,306			—			169,266
Cash and cash equivalents at end of period	$	—		$	42,126		$	83,515		$	110,361		$	—		$	236,002