Significant Accounting Policies (Tables)

12 Months Ended

May 31, 2019

Accounting Policies [Abstract]

Schedule of Inventory

Inventory is comprised of the following amounts at May 31:

(In thousands)	2019		2018
Raw materials	$	17,812	$	17,042
Work in process	28,820		27,350
Finished goods	287,957		235,955
	$	334,589	$	280,347

Property and Equipment Estimated Useful Lives

Depreciation is calculated using the straight-line method primarily over the following estimated useful lives of the assets based on industry and Cintas specific experience, in years:

Buildings	30 to 40
Building improvements	5 to 20
Equipment	3 to 10
Leasehold improvements	2 to 15

Cintas' property and equipment is summarized as follows at May 31:

(In thousands)	2019		2018
Land	$	189,828	$	177,281
Buildings and improvements	684,699		644,322
Equipment	2,207,481		2,070,009
Leasehold improvements	43,227		34,891
Construction in progress	67,129		119,937
	3,192,364		3,046,440
Less: accumulated depreciation	1,761,679		1,663,710
Property and equipment, net	$	1,430,685	$	1,382,730

Current Accrued Liabilities

Current accrued liabilities consist of the following at May 31:

(In thousands)	2019		2018
General insurance liabilities	$	165,667	$	163,400
Employee benefit related liabilities	123,794		112,801
Taxes and related liabilities	7,716		8,148
Accrued interest	24,687		24,763
Other	112,076		111,017
	$	433,940	$	420,129

Impact of Adoption of ASU 2014-09

			Impacts of Adopting ASU 2014-09
(In thousands)	May 31, 2018		Capitalization of Contract Costs		Assets With No Alternative Use			June 1, 2018
Assets
Accounts receivable, net	$	804,583	$	—	$	13,426		$	818,009
Inventories, net	280,347		—		(11,265		)	269,082
Prepaid expenses and other current assets	32,383		63,463		—			95,846
Total current assets	1,977,932		63,463		2,161			2,043,556
Other assets, net	29,315		187,503		—			216,818
Total assets	$	6,958,214	$	250,966	$	2,161		$	7,211,341
Liabilities and Shareholders' Equity
Deferred income taxes	$	352,581	$	63,389	$	546		$	416,516
Total long-term liabilities	3,165,831		63,389		546			3,229,766
Retained earnings	5,837,827		187,577		1,615			6,027,019
Total shareholders' equity	3,016,526		187,577		1,615			3,205,718
Total liabilities and shareholders' equity	$	6,958,214	$	250,966	$	2,161		$	7,211,341

The impacts of adopting ASU 2014-09 on our fiscal 2019 consolidated financial statements are presented in the following tables:

	Fiscal year ended May 31, 2019
Consolidated Statement of Income (In thousands)	As Reported		Under Historical Guidance		Impact of Adopting ASU 2014-09
Revenue:
Uniform rental and facility services	$	5,552,430	$	5,557,056	$	(4,626	)
Other	1,339,873		1,337,954		1,919
Total revenue	6,892,303		6,895,010		(2,707		)
Costs and expenses:
Cost of other	736,116		735,703		413
Selling and administrative expenses	1,980,644		2,006,134		(25,490		)
Operating income	1,133,534		1,111,164		22,370
Income before income taxes	1,102,399		1,080,029		22,370
Income taxes	219,764		214,306		5,458
Income from continuing operations	882,635		865,723		16,912
Net income	$	884,981	$	868,069	$	16,912
Diluted earnings per share	$	7.99	$	7.84	$	0.15

	As of May 31, 2019
Consolidated Balance Sheet (In thousands)	As Reported		Under Historical Guidance		Impact of Adopting ASU 2014-09
Assets
Accounts receivable, net	$	910,120	$	894,301	$	15,819
Inventories, net	334,589		346,267		(11,678		)
Income taxes, current	7,475		7,904		(429		)
Prepaid expenses and other current assets	103,318		33,759		69,559
Total current assets	2,236,280		2,163,009		73,271
Other assets, net	240,315		38,518		201,797
Total assets	$	7,436,662	$	7,161,594	$	275,068
Liabilities and Shareholders' Equity
Long-term liabilities:
Deferred income taxes	$	438,179	$	369,215	$	68,964
Total long-term liabilities	3,306,208		3,237,244		68,964
Retained earnings	6,691,236		6,485,132		206,104
Total shareholders' equity	3,002,721		2,796,617		206,104
Total liabilities and shareholders' equity	$	7,436,662	$	7,161,594	$	275,068