EX-99 2 ex993-19.htm EXHIBIT 99 Exhibit


Exhibit 99
FOR IMMEDIATE RELEASE                             
March 21, 2019


Cintas Corporation Announces
Fiscal 2019 Third Quarter Results


CINCINNATI, March 21, 2019 -- Cintas Corporation (Nasdaq: CTAS) today reported results for its fiscal 2019 third quarter ended February 28, 2019.

Revenue for the third quarter of fiscal 2019 was $1.68 billion, an increase of 5.9% over last year’s third quarter. The organic growth rate, which adjusts for the impacts of acquisitions and foreign currency exchange rate fluctuations, was 6.0%. In the third quarter of fiscal 2019, the organic growth rate for the Uniform Rental and Facility Services operating segment was 6.2%, and the organic growth rate for the First Aid and Safety Services operating segment was 8.6%. Scott D. Farmer, Cintas’ Chairman and Chief Executive Officer, stated, “Customer closures caused by the severe weather and the holiday calendar during the quarter created challenges within our route schedules. Despite these challenges, we still delivered solid organic growth for the quarter.”

Gross margin for the third quarter of fiscal 2019 of $755.2 million increased 7.8% from last year’s third quarter. Gross margin as a percentage of revenue was 44.9% for the third quarter of fiscal 2019 compared to 44.1% in the third quarter of last fiscal year. Uniform Rental and Facility Services operating segment gross margin as a percentage of revenue also improved 80 basis points from last year’s third quarter to 44.9%, and the First Aid and Safety Services operating segment gross margin percentage improved 130 basis points to 48.2%.

Operating income for the third quarter of fiscal 2019 of $278.3 million increased 39.1% from last year’s third quarter operating income of $200.0 million. Operating income as a percentage of revenue was 16.5% in the third quarter of fiscal 2019 compared to 12.6% in the third quarter of fiscal 2018. Operating income was negatively impacted by integration expenses related to the G&K Services, Inc. (G&K) acquisition by $0.8 million in the third quarter of fiscal 2019 and $9.8 million in the third quarter of fiscal 2018. Operating income in the third quarter of fiscal 2018 was also reduced $39.7 million by a one-time cash payment to Cintas employees following the enactment of The Tax Cuts and Jobs Act (Tax Act) signed into legislation on December 22, 2017. Excluding the integration expenses related to the G&K acquisition and the one-time cash payment to employees, operating income as a percentage of revenue was 16.6% in the third quarter of fiscal 2019 compared to 15.7% in the third quarter of last fiscal year.

Net income from continuing operations was $200.9 million for the third quarter of fiscal 2019, compared to $295.8 million in the third quarter of fiscal 2018. Earnings per diluted share (EPS) from continuing operations were $1.83 for the third quarter of fiscal 2019, compared to $2.66 in the prior year third quarter. G&K acquisition integration expenses negatively impacted EPS in the third quarter of fiscal year 2019 and 2018 by $0.01 and $0.06, respectively. Earnings per diluted share from continuing operations in the third quarter of fiscal 2018 also included a negative impact of $0.24 from the one-time cash payment to employees and a positive impact of $1.59 from benefits under the Tax Act, primarily due to a one-time revaluation of deferred tax assets and liabilities.




The following table provides a comparison of fiscal 2019 third quarter EPS to fiscal 2018 third quarter EPS:
 
Three Months Ended
Earnings Per Share Results
February 28,
2019
 
February 28,
2018
 
Growth vs.
FY 2018
 
 
 
 
 
 
EPS - continuing operations
$
1.83

 
$
2.66

 
 
G&K integration expenses
0.01

 
0.06

 
 
One-time cash payment to employees
—

 
0.24

 
 
One-time deferred tax benefit of Tax Act
—

 
(1.59
)
 
 
EPS excluding above items
$
1.84

 
$
1.37

 
34.3
%
 
 
 
 
 
 
 
Nine Months Ended
 
February 28,
2019
 
February 28,
2018
 
Growth vs.
FY 2018
 
 
 
 
 
 
EPS - continuing operations
$
5.91

 
$
5.35

 
 
G&K integration expenses
0.09

 
0.16

 
 
One-time cash payment to employees
—

 
0.24

 
 
Non-recurring gain on sale of investment
(0.47)

 
—

 
 
One-time deferred tax benefit of Tax Act
—

 
(1.59
)
 
 
EPS excluding above items
$
5.53

 
$
4.16

 
32.9
%

“We remain committed to effectively deploying cash to increase shareholder value,” stated Mr. Farmer. “In this year’s third quarter, we paid an annual dividend totaling $220.8 million. The dividend of $2.05 per share was an increase of 26.5% over last year’s dividend. In addition, we purchased $100.0 million of Cintas stock under our buyback program in our third quarter. As of February 28, 2019, we have now purchased $546.6 million of Cintas stock during fiscal 2019, and the amount remaining under our buyback program is $863.4 million.”

Mr. Farmer added, “Strong financial performance is a result of the dedication of our employee-partners to getting our customers Ready for the Workday™. I thank our employee-partners for exceeding customer expectations while also making significant progress on integrating the G&K acquisition and converting more operations to our new enterprise resource planning system.”

Mr. Farmer concluded, “We are updating our annual guidance for fiscal 2019. We expect revenue to be in the range of $6.870 billion to $6.885 billion. This implies a strong finish to our fiscal 2019 with fiscal fourth quarter revenue growth in the range of 6% to 7% and operating income margin in the range of 17.0% to 17.5%. We expect EPS from continuing operations excluding certain items to be in the range of $7.42 to $7.48. This guidance does not include any potential deterioration in the U.S. economy, future share buybacks, or any future integration expenses related to the acquisition of G&K.”

The following table provides a comparison of fiscal 2018 revenue and EPS to our fiscal 2019 revenue and EPS guidance:
 
Fiscal
 2018
 
Fiscal 2019
Low End
of Range
 
Growth
vs. 2018
 
Fiscal 2019
High End
of Range
 
Growth
vs. 2018
 
 
 
 
 
 
 
 
 
 
Fiscal 2019 Revenue Guidance
 
 
 
 
 
 
 
 
 
($s in millions)
 
 
 
 
 
 
 
 
 
Revenue Guidance
$
6,476.6

 
$
6,870.0

 
6.1%
 
$
6,885.0

 
6.3%
 
 
 
 
 
 
 
 
 
 
Fiscal 2019 Earnings Per Share Guidance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EPS - continuing operations
$
7.03

 
$
7.80

 
 
 
$
7.86

 
 
G&K integration expenses
0.26

 
0.09

 
 
 
0.09

 
 
One-time cash payment to employees
0.24

 
—

 
 
 
—

 
 
Non-recurring gain on sale of investment
—

 
(0.47
)
 
 
 
(0.47
)
 
 
One-time deferred tax benefit of Tax Act
(1.59
)
 
—

 
 
 
—

 
 
 
 
 
 
 
 
 
 
 
 
EPS Guidance
$
5.94

 
$
7.42

 
24.9%
 
$
7.48

 
25.9%




About Cintas
Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing a wide range of products and services that enhance our customers’ image and help keep their facilities and employees clean, safe and looking their best. With products and services including uniforms, floor care, restroom supplies, first aid and safety products, fire extinguishers and testing, and safety and compliance training, Cintas helps customers get Ready for the Workday™. Headquartered in Cincinnati, Cintas is a publicly held company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and the Nasdaq-100 Index.



CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements.  Forward-looking statements may be identified by words such as “estimates,” “anticipates,” “predicts,” “projects,” “plans,” “expects,” “intends,” “target,” “forecast,” “believes,” “seeks,” “could,” “should,” “may” and “will” or the negative versions thereof and similar words, terms and expressions and by the context in which they are used.  Such statements are based upon current expectations of Cintas and speak only as of the date made.  You should not place undue reliance on any forward-looking statement.  We cannot guarantee that any forward-looking statement will be realized.  These statements are subject to various risks, uncertainties, potentially inaccurate assumptions and other factors that could cause actual results to differ from those set forth in or implied by this Press Release.  Factors that might cause such a difference include, but are not limited to, risks inherent with the G&K transaction in the achievement of cost synergies and the timing thereof, including whether the transaction will be accretive and within the expected timeframe and the actual amounts of future integration expenses; the possibility of greater than anticipated operating costs including energy and fuel costs; lower sales volumes; loss of customers due to outsourcing trends; the performance and costs of integration of acquisitions, including G&K; fluctuations in costs of materials and labor including increased medical costs; costs and possible effects of union organizing activities; failure to comply with government regulations concerning employment discrimination, employee pay and benefits and employee health and safety; the effect on operations of exchange rate fluctuations, tariffs and other political, economic and regulatory risks; uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation; the cost, results and ongoing assessment of internal controls for financial reporting required by the Sarbanes-Oxley Act of 2002; the effect of new accounting pronouncements; costs of our SAP system implementation; disruptions caused by the inaccessibility of computer systems data, including cybersecurity risks; the initiation or outcome of litigation, investigations or other proceedings; higher assumed sourcing or distribution costs of products; the disruption of operations from catastrophic or extraordinary events; the amount and timing of repurchases of our common stock, if any; changes in federal and state tax and labor laws; and the reactions of competitors in terms of price and service. Cintas undertakes no obligation to publicly release any revisions to any forward-looking statements or to otherwise update any forward-looking statements whether as a result of new information or to reflect events, circumstances or any other unanticipated developments arising after the date on which such statements are made.  A further list and description of risks, uncertainties and other matters can be found in our Annual Report on Form 10-K for the year ended May 31, 2018 and in our reports on Forms 10-Q and 8-K.  The risks and uncertainties described herein are not the only ones we may face. Additional risks and uncertainties presently not known to us or that we currently believe to be immaterial may also harm our business.


For additional information, contact:
J. Michael Hansen, Executive Vice President and Chief Financial Officer - 513-972-2079
Paul F. Adler, Vice President and Treasurer - 513-972-4195






Cintas Corporation
Consolidated Condensed Statements of Income
(Unaudited)
(In thousands except per share data)
 
Three Months Ended
 
February 28,
2019
 
February 28,
2018
 
% 
Change
Revenue:
 

 
 

 
 
Uniform rental and facility services
$
1,358,322

 
$
1,284,516

 
5.7%
Other
324,008

 
304,622

 
6.4%
Total revenue
1,682,330

 
1,589,138

 
5.9%
 
 
 
 
 
 
Costs and expenses:
 

 
 

 
 
Cost of uniform rental and facility services
748,971

 
718,138

 
4.3%
Cost of other
178,206

 
170,537

 
4.5%
Selling and administrative expenses
476,099

 
490,618

 
(3.0)%
G&K Services, Inc. integration expenses
799

 
9,821

 
(91.9)%
 
 
 
 
 
 
Operating income
278,255

 
200,024

 
39.1%
 
 
 
 
 
 
Interest income
(70
)
 
(384
)
 
(81.8)%
Interest expense
26,770

 
25,901

 
3.4%
 
 
 
 
 
 
Income before income taxes
251,555

 
174,507

 
44.2%
Income taxes
50,632

 
(121,282
)
 
(141.7)%
Income from continuing operations
200,923

 
295,789

 
(32.1)%
Income from discontinued operations, net of tax
2,411

 
6,306

 
(61.8)%
Net income
$
203,334

 
$
302,095

 
(32.7)%
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
Continuing operations
$
1.89

 
$
2.73

 
(30.8)%
Discontinued operations
0.02

 
0.06

 
(66.7)%
Basic earnings per share
$
1.91

 
$
2.79

 
(31.5)%
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
Continuing operations
$
1.83

 
$
2.66

 
(31.2)%
Discontinued operations
0.02

 
0.05

 
(60.0)%
Diluted earnings per share
$
1.85

 
$
2.71

 
(31.7)%
 
 
 
 
 
 
Weighted average number of shares outstanding
105,080

 
106,558

 
 
Diluted average number of shares outstanding
108,162

 
110,175

 
 






 




Cintas Corporation
Consolidated Condensed Statements of Income
(Unaudited)
(In thousands except per share data)
 
Nine Months Ended
 
February 28,
2019
 
February 28,
2018
 
% 
Change
Revenue:
 

 
 

 
 
Uniform rental and facility services
$
4,124,038

 
$
3,904,338

 
5.6%
Other
974,535

 
902,744

 
8.0%
Total revenue
5,098,573

 
4,807,082

 
6.1%
 
 
 
 
 
 
Costs and expenses:
 

 
 

 
 
Cost of uniform rental and facility services
2,256,543

 
2,148,961

 
5.0%
Cost of other
537,007

 
501,936

 
7.0%
Selling and administrative expenses
1,472,404

 
1,444,985

 
1.9%
G&K Services, Inc. integration expenses
13,496

 
26,866

 
(49.8)%
 
 
 
 
 
 
Operating income
819,123

 
684,334

 
19.7%
 
 
 
 
 
 
Gain on sale of a cost method investment
69,373

 
—

 
100.0%
 
 
 
 
 
 
Interest income
(957
)
 
(972
)
 
(1.5)%
Interest expense
75,954

 
85,347

 
(11.0)%
 
 
 
 
 
 
Income before income taxes
813,499

 
599,959

 
35.6%
Income taxes
157,035

 
5,325

 
2,849.0%
Income from continuing operations
656,464

 
594,634

 
10.4%
Income from discontinued operations, net of tax
2,398

 
61,781

 
(96.1)%
Net income
$
658,862

 
$
656,415

 
0.4%
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
Continuing operations
$
6.10

 
$
5.50

 
10.9%
Discontinued operations
0.02

 
0.57

 
(96.5)%
Basic earnings per share
$
6.12

 
$
6.07

 
0.8%
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
Continuing operations
$
5.91

 
$
5.35

 
10.5%
Discontinued operations
0.02

 
0.55

 
(96.4)%
Diluted earnings per share
$
5.93

 
$
5.90

 
0.5%
 
 
 
 
 
 
Weighted average number of shares outstanding
106,147

 
106,210

 
 
Diluted average number of shares outstanding
109,583

 
109,254

 
 











CINTAS CORPORATION SUPPLEMENTAL DATA

Gross Margin Results
 
Three Months Ended
 
February 28,
2019
 
February 28,
2018
 
 
 
 
Uniform rental and facility services gross margin
44.9
%
 
44.1
%
Other gross margin
45.0
%
 
44.0
%
Total gross margin
44.9
%
 
44.1
%
 
 
 
 
 
Nine Months Ended
 
February 28,
2019
 
February 28,
2018
 
 
 
 
Uniform rental and facility services gross margin
45.3
%
 
45.0
%
Other gross margin
44.9
%
 
44.4
%
Total gross margin
45.2
%
 
44.9
%

Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure

The press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. To supplement its consolidated condensed financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), the Company provides the additional non-GAAP financial measures of earnings per diluted share and cash flow. The Company believes that these non-GAAP financial measures are appropriate to enhance understanding of its past performance as well as prospects for future performance. A reconciliation of the differences between these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP are shown in the tables within the narrative of the press release or below.

Earnings Per Share Results
 
Three Months Ended
 
February 28,
2019
 
February 28,
2018
 
Growth vs.
 FY 2018
EPS - continuing operations
$
1.83

 
$
2.66

 
 
G&K Services, Inc. integration expenses
0.01

 
0.06

 
 
One-time cash payment to employees
—

 
0.24

 
 
One-time deferred tax benefit of Tax Act
—

 
(1.59
)
 
 
EPS excluding above items
$
1.84

 
$
1.37

 
34.3
%
 
 
 
 
 
 
 
Nine Months Ended
 
February 28,
2019
 
February 28,
2018
 
Growth vs.
 FY 2018
EPS - continuing operations
$
5.91

 
$
5.35

 
 
G&K Services, Inc. integration expenses
0.09

 
0.16

 
 
One-time cash payment to employees
—

 
0.24

 
 
Non-recurring gain on sale of investment
(0.47
)
 
—

 
 
One-time deferred tax benefit of Tax Act
—

 
(1.59
)
 
 
EPS excluding above items
$
5.53

 
$
4.16

 
32.9
%




Computation of Free Cash Flow
 
Nine Months Ended
 
February 28,
2019
 
February 28,
2018
Net cash provided by operations
$
670,717

 
$
660,864

Capital expenditures
(207,805
)
 
(196,040
)
Free cash flow
$
462,912

 
$
464,824

Management uses free cash flow to assess the financial performance of the Company. Management believes that free cash flow is useful to investors because it relates the operating cash flow of the Company to the capital that is spent to continue, improve and grow business operations.

SUPPLEMENTAL SEGMENT DATA
 
 
Uniform Rental
and Facility Services
 
First Aid
 and Safety Services
 
All
Other
 
Corporate
 
Total
 
 
 
 
 
 
 
 
 
 
 
For the three months ended February 28, 2019
 
 
 
 
 
 
 
 
Revenue
 
$
1,358,322

 
$
149,170

 
$
174,838

 
$
—

 
$
1,682,330

Gross margin
 
$
609,351

 
$
71,890

 
$
73,912

 
$
—

 
$
755,153

Selling and administrative expenses
 
$
369,414

 
$
50,268

 
$
56,417

 
$
—

 
$
476,099

G&K Services, Inc. integration expenses
 
$
799

 
$
—

 
$
—

 
$
—

 
$
799

Interest income
 
$
—

 
$
—

 
$
—

 
$
(70
)
 
$
(70
)
Interest expense
 
$
—

 
$
—

 
$
—

 
$
26,770

 
$
26,770

Income (loss) before income taxes
 
$
239,138

 
$
21,622

 
$
17,495

 
$
(26,700
)
 
$
251,555

 
 
 
 
 
 
 
 
 
 
 
For the three months ended February 28, 2018
 
 
 
 
 
 
 
 
Revenue
 
$
1,284,516

 
$
137,327

 
$
167,295

 
$
—

 
$
1,589,138

Gross margin
 
$
566,378

 
$
64,348

 
$
69,737

 
$
—

 
$
700,463

Selling and administrative expenses
 
$
383,270

 
$
47,643

 
$
59,705

 
$
—

 
$
490,618

G&K Services, Inc. integration expenses
 
$
9,821

 
$
—

 
$
—

 
$
—

 
$
9,821

Interest income
 
$
—

 
$
—

 
$
—

 
$
(384
)
 
$
(384
)
Interest expense
 
$
—

 
$
—

 
$
—

 
$
25,901

 
$
25,901

Income (loss) before income taxes
 
$
173,287

 
$
16,705

 
$
10,032


$
(25,517
)
 
$
174,507

 
 
 
 
 
 
 
 
 
 
 
For the nine months ended February 28, 2019
 
 
 
 
 
 
 
 
Revenue
 
$
4,124,038

 
$
455,935

 
$
518,600

 
$
—

 
$
5,098,573

Gross margin
 
$
1,867,495

 
$
219,045

 
$
218,483

 
$
—

 
$
2,305,023

Selling and administrative expenses
 
$
1,140,436

 
$
154,112

 
$
177,856

 
$
—

 
$
1,472,404

G&K Services, Inc. integration expenses
 
$
13,496

 
$
—

 
$
—

 
$
—

 
$
13,496

Gain on sale of a cost method investment
 
$
—

 
$
—

 
$
—

 
$
69,373

 
$
69,373

Interest income
 
$
—

 
$
—

 
$
—

 
$
(957
)
 
$
(957
)
Interest expense
 
$
—

 
$
—

 
$
—

 
$
75,954

 
$
75,954

Income (loss) before income taxes
 
$
713,563

 
$
64,933

 
$
40,627

 
$
(5,624
)
 
$
813,499

 
 
 
 
 
 
 
 
 
 
 
For the nine months ended February 28, 2018
 
 
 
 
 
 
 
 
Revenue
 
$
3,904,338

 
$
416,999

 
$
485,745

 
$
—

 
$
4,807,082

Gross margin
 
$
1,755,377

 
$
196,383

 
$
204,425

 
$
—

 
$
2,156,185

Selling and administrative expenses
 
$
1,132,500

 
$
142,292

 
$
170,193

 
$
—

 
$
1,444,985

G&K Services, Inc. integration expenses
 
$
26,866

 
$
—

 
$
—

 
$
—

 
$
26,866

Interest income
 
$
—

 
$
—

 
$
—

 
$
(972
)
 
$
(972
)
Interest expense
 
$
—

 
$
—

 
$
—

 
$
85,347

 
$
85,347

Income (loss) before income taxes
 
$
596,011

 
$
54,091

 
$
34,232

 
$
(84,375
)
 
$
599,959





Cintas Corporation
Consolidated Condensed Balance Sheets
(In thousands except share data)
 
February 28,
2019
 
May 31,
2018
 
(Unaudited)
 
 
ASSETS
 
 
 

Current assets:
 

 
 

Cash and cash equivalents
$
80,859

 
$
138,724

Accounts receivable, net
878,037

 
804,583

Inventories, net
339,805

 
280,347

Uniforms and other rental items in service
773,534

 
702,261

Income taxes, current
42,552

 
19,634

Prepaid expenses and other current assets
108,969

 
32,383

Total current assets
2,223,756

 
1,977,932

 
 
 
 
Property and equipment, net
1,424,063

 
1,382,730

 
 
 
 
Investments
191,818

 
175,581

Goodwill
2,847,783

 
2,846,888

Service contracts, net
508,402

 
545,768

Other assets, net
237,851

 
29,315

 
$
7,433,673

 
$
6,958,214

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 

 
 

Current liabilities:
 

 
 

Accounts payable
$
214,567

 
$
215,074

Accrued compensation and related liabilities
136,814

 
140,654

Accrued liabilities
425,470

 
420,129

Debt due within one year
217,500

 
—

Total current liabilities
994,351

 
775,857

 
 
 
 
Long-term liabilities:
 

 
 

Debt due after one year
2,536,958

 
2,535,309

Deferred income taxes
439,011

 
352,581

Accrued liabilities
283,861

 
277,941

Total long-term liabilities
3,259,830

 
3,165,831

 
 
 
 
Shareholders’ equity:
 

 
 

Preferred stock, no par value:
         100,000 shares authorized, none outstanding
—

 
—

Common stock, no par value:
425,000,000 shares authorized
FY19: 184,559,502 issued and 104,932,029 outstanding
FY18: 182,723,471 issued and 106,326,383 outstanding
826,175

 
618,464

Paid-in capital
197,327

 
245,211

Retained earnings
6,465,121

 
5,837,827

Treasury stock:
FY19: 79,627,473 shares
FY18: 76,397,088 shares
(4,309,543
)
 
(3,701,319
)
Accumulated other comprehensive income
412

 
16,343

Total shareholders’ equity
3,179,492

 
3,016,526

 
 
 
 
 
$
7,433,673

 
$
6,958,214





Cintas Corporation
Consolidated Condensed Statements of Cash Flows
(Unaudited)
(In thousands)
 
Nine Months Ended
 
February 28,
2019
 
February 28,
2018
Cash flows from operating activities:
 

 
 

Net income
$
658,862

 
$
656,415

 
 
 
 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation
164,380

 
157,319

Amortization of intangible assets and capitalized contract costs
101,949

 
47,583

Stock-based compensation
105,553

 
86,044

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

Gain on sale of business
(2,419
)
 
(99,060
)
Deferred income taxes
25,079

 
(120,428
)
Change in current assets and liabilities, net of acquisitions of businesses:
 
 
 
Accounts receivable, net
(61,102
)
 
(40,046
)
Inventories, net
(70,716
)
 
4,011

Uniforms and other rental items in service
(72,336
)
 
(44,050
)
Prepaid expenses and other current assets and capitalized contract costs
(85,123
)
 
(17,925
)
Accounts payable
79

 
(580
)
Accrued compensation and related liabilities
(3,866
)
 
(2,209
)
Accrued liabilities and other
3,614

 
10,997

Income taxes, current
(23,864
)
 
22,793

Net cash provided by operating activities
670,717

 
660,864

 
 
 
 
Cash flows from investing activities:
 

 
 

Capital expenditures
(207,805
)
 
(196,040
)
Proceeds from redemption of marketable securities and investments
—

 
146,302

Purchase of marketable securities and investments
(17,544
)
 
(157,528
)
Proceeds from sale of a cost method investment
73,342

 
—

Proceeds from sale of business
3,200

 
127,835

Acquisitions of businesses, net of cash acquired
(7,403
)
 
(12,298
)
Other, net
(6,804
)
 
1,746

Net cash used in investing activities
(163,014
)
 
(89,983
)
 
 
 
 
Cash flows from financing activities:
 
 
 

Issuance of commercial paper, net
217,500

 
137,000

Repayment of debt
—

 
(550,000
)
Proceeds from exercise of stock-based compensation awards
54,274

 
35,838

Dividends paid
(220,760
)
 
(175,589
)
Repurchase of common stock
(608,224
)
 
(37,050
)
Other, net
(8,088
)
 
(2,489
)
Net cash used in financing activities
(565,298
)
 
(592,290
)
 


 


Effect of exchange rate changes on cash and cash equivalents
(270
)
 
4,706

 
 
 
 
Net decrease in cash and cash equivalents
(57,865
)
 
(16,703
)
Cash and cash equivalents at beginning of period
138,724

 
169,266

Cash and cash equivalents at end of period
$
80,859

 
$
152,563