Supplemental Guarantor Information (Tables)

9 Months Ended

Feb. 29, 2020

Condensed Financial Information Disclosure [Abstract]

Consolidating Condensed Income Statement

Consolidating Condensed Income Statement

Three Months Ended February 29, 2020

(In thousands)

	Cintas Corporation		Corp. 2		Subsidiary Guarantors		Non- Guarantors		Eliminations		Cintas Corporation Consolidated
Revenue:
Uniform rental and facility services	$	—	$	1,150,780	$	189,333	$	108,599	$	(691)	$	1,448,021
Other	—		578,950		64		22,319		(238,706)		362,627
Equity in net income of affiliates	234,520		—		—		—		(234,520)		—
Total revenue	234,520		1,729,730		189,397		130,918		(473,917)		1,810,648
Costs and expenses (income):
Cost of uniform rental and facility services	—		634,638		112,865		70,279		(32,852)		784,930
Cost of other	—		408,832		(25,807)		17,003		(198,705)		201,323
Selling and administrative expenses	—		576,433		(94,155)		35,171		(7,706)		509,743
Operating income	234,520		109,827		196,494		8,465		(234,654)		314,652
Interest income	—		(131)		(195)		(22)		1		(347)
Interest expense (income)	—		26,033		(91)		1		—		25,943
Income before income taxes	234,520		83,925		196,780		8,486		(234,655)		289,056
Income taxes	—		15,717		36,380		2,464		(25)		54,536
Net income	$	234,520	$	68,208	$	160,400	$	6,022	$	(234,630)	$	234,520

Consolidating Condensed Income Statement

Three Months Ended February 28, 2019

(In thousands)

	Cintas Corporation		Corp. 2		Subsidiary Guarantors		Non- Guarantors		Eliminations		Cintas Corporation Consolidated
Revenue:
Uniform rental and facility services	$	—	$	1,092,594	$	176,787	$	99,866	$	(10,925)	$	1,358,322
Other	—		519,294		44		21,982		(217,312)		324,008
Equity in net income of affiliates	200,923		—		—		—		(200,923)		—
Total revenue	200,923		1,611,888		176,831		121,848		(429,160)		1,682,330
Costs and expenses (income):
Cost of uniform rental and facility    services	—		612,167		111,103		64,976		(39,275)		748,971
Cost of other	—		373,168		(25,811)		15,649		(184,800)		178,206
Selling and administrative expenses	—		527,720		(74,507)		31,042		(8,156)		476,099
G&K Services, Inc. integration expenses	—		(141)		(379)		1,319		—		799
Operating income	200,923		98,974		166,425		8,862		(196,929)		278,255
Interest (income) expense	—		(56)		1		(18)		3		(70)
Interest expense (income)	—		26,872		(104)		2		—		26,770
Income before income taxes	200,923		72,158		166,528		8,878		(196,932)		251,555
Income taxes	—		12,330		35,665		2,656		(19)		50,632
Income from continuing operations	200,923		59,828		130,863		6,222		(196,913)		200,923
Income from discontinued operations, net of tax	2,411		2,411		—		—		(2,411)		2,411
Net income	$	203,334	$	62,239	$	130,863	$	6,222	$	(199,324)	$	203,334

Consolidating Condensed Income Statement

Nine Months Ended February 29, 2020

(In thousands)

	Cintas Corporation		Corp. 2		Subsidiary Guarantors		Non- Guarantors		Eliminations		Cintas Corporation Consolidated
Revenue:
Uniform rental and facility services	$	—	$	3,477,631	$	574,536	$	322,188	$	(1,831)	$	4,372,524
Other	—		1,768,466		332		69,925		(745,711)		1,093,012
Equity in net income of affiliates	731,775		—		—		—		(731,775)		—
Total revenue	731,775		5,246,097		574,868		392,113		(1,479,317)		5,465,536
Costs and expenses (income):
Cost of uniform rental and facility services	—		1,891,754		337,104		205,236		(95,551)		2,338,543
Cost of other	—		1,240,092		(75,346)		53,656		(617,337)		601,065
Selling and administrative expenses	—		1,767,258		(277,575)		102,365		(21,382)		1,570,666
Operating income	731,775		346,993		590,685		30,856		(745,047)		955,262
Interest income	—		(438)		(302)		(56)		4		(792)
Interest expense (income)	—		79,657		(231)		15		—		79,441
Income before income taxes	731,775		267,774		591,218		30,897		(745,051)		876,613
Income taxes	—		42,578		94,010		8,336		(86)		144,838
Income from continuing operations	731,775		225,196		497,208		22,561		(744,965)		731,775
Loss from discontinued operations,    net of tax	(323)		(323)		—		—		323		(323)
Net income	$	731,452	$	224,873	$	497,208	$	22,561	$	(744,642)	$	731,452

Consolidating Condensed Income Statement

Nine Months Ended February 28, 2019

(In thousands)

	Cintas Corporation		Corp. 2		Subsidiary Guarantors		Non- Guarantors		Eliminations		Cintas Corporation Consolidated
Revenue:
Uniform rental and facility services	$	—	$	3,365,841	$	542,826	$	301,379	$	(86,008)	$	4,124,038
Other	—		1,532,665		137		72,232		(630,499)		974,535
Equity in net income of affiliates	656,464		—		—		—		(656,464)		—
Total revenue	656,464		4,898,506		542,963		373,611		(1,372,971)		5,098,573
Costs and expenses (income):
Cost of uniform rental and facility    services	—		1,896,767		332,208		194,305		(166,737)		2,256,543
Cost of other	—		1,090,265		(74,973)		53,110		(531,395)		537,007
Selling and administrative expenses	—		1,608,906		(207,745)		97,964		(26,721)		1,472,404
G&K Services, Inc. integration expenses	—		8,508		2,754		2,234		—		13,496
Operating income	656,464		294,060		490,719		25,998		(648,118)		819,123
Gain on sale of a cost method investment	—		—		69,373		—		—		69,373
Interest income	—		(559)		(364)		(39)		5		(957)
Interest expense (income)	—		76,579		(639)		14		—		75,954
Income before income taxes	656,464		218,040		561,095		26,023		(648,123)		813,499
Income taxes	—		42,159		107,497		7,456		(77)		157,035
Income from continuing operations	656,464		175,881		453,598		18,567		(648,046)		656,464
Income from discontinued operations, net of tax	2,398		2,398		—		—		(2,398)		2,398
Net income	$	658,862	$	178,279	$	453,598	$	18,567	$	(650,444)	$	658,862

Consolidating Condensed Statement of Comprehensive Income

Consolidating Condensed Statement of Comprehensive Income

Three Months Ended February 29, 2020

(In thousands)

	Cintas Corporation		Corp. 2		Subsidiary Guarantors		Non- Guarantors		Eliminations		Cintas Corporation Consolidated
Net income	$	234,520	$	68,208	$	160,400	$	6,022	$	(234,630)	$	234,520
Other comprehensive (loss)    income, net of tax:
Foreign currency translation adjustments	(4,039)		—		—		(4,039)		4,039		(4,039)
Change in fair value of interest rate lock agreements	(53,582)		(53,582)		—		—		53,582		(53,582)
Amortization of interest rate    lock agreements	(358)		(358)		—		—		358		(358)
Other comprehensive loss	(57,979)		(53,940)		—		(4,039)		57,979		(57,979)
Comprehensive income	$	176,541	$	14,268	$	160,400	$	1,983	$	(176,651)	$	176,541

Consolidating Condensed Statement of Comprehensive Income

Three Months Ended February 28, 2019

(In thousands)

	Cintas Corporation		Corp. 2		Subsidiary Guarantors		Non- Guarantors		Eliminations		Cintas Corporation Consolidated
Net income	$	203,334	$	62,239	$	130,863	$	6,222	$	(199,324)	$	203,334
Other comprehensive income    (loss), net of tax:
Foreign currency translation adjustments	5,025		—		—		5,025		(5,025)		5,025
Change in fair value of interest rate lock agreements	(8,183)		(8,183)		—		—		8,183		(8,183)
Amortization of interest rate lock agreements	(295)		(295)		—		—		295		(295)
Other comprehensive (loss) income	(3,453)		(8,478)		—		5,025		3,453		(3,453)
Comprehensive income	$	199,881	$	53,761	$	130,863	$	11,247	$	(195,871)	$	199,881

Consolidating Condensed Statement of Comprehensive Income

Nine Months Ended February 29, 2020

(In thousands)

	Cintas Corporation		Corp. 2		Subsidiary Guarantors		Non- Guarantors		Eliminations		Cintas Corporation Consolidated
Net income	$	731,452	$	224,873	$	497,208	$	22,561	$	(744,642)	$	731,452
Other comprehensive income    (loss), net of tax:
Foreign currency translation adjustments	4,098		—		—		4,098		(4,098)		4,098
Change in fair value of interest rate lock agreements	(60,724)		(60,724)		—		—		60,724		(60,724)
Amortization of interest rate    lock agreements	(1,011)		(1,011)		—		—		1,011		(1,011)
Other comprehensive (loss) income	(57,637)		(61,735)		—		4,098		57,637		(57,637)
Comprehensive income	$	673,815	$	163,138	$	497,208	$	26,659	$	(687,005)	$	673,815

Consolidating Condensed Statement of Comprehensive Income

Nine Months Ended February 28, 2019

(In thousands)

	Cintas Corporation		Corp. 2		Subsidiary Guarantors		Non- Guarantors		Eliminations		Cintas Corporation Consolidated
Net income	$	658,862	$	178,279	$	453,598	$	18,567	$	(650,444)	$	658,862
Other comprehensive loss, net of tax:
Foreign currency translation adjustments	(8,617)		—		—		(8,617)		8,617		(8,617)
Change in fair value of interest rate lock agreements	(6,430)		(6,430)		—		—		6,430		(6,430)
Amortization of interest rate lock agreements	(884)		(884)		—		—		884		(884)
Other comprehensive loss	(15,931)		(7,314)		—		(8,617)		15,931		(15,931)
Comprehensive income	$	642,931	$	170,965	$	453,598	$	9,950	$	(634,513)	$	642,931

Consolidating Condensed Balance Sheet

Consolidating Condensed Balance Sheet

As of February 29, 2020

(In thousands)

	Cintas Corporation		Corp. 2		Subsidiary Guarantors		Non- Guarantors		Eliminations		Cintas Corporation Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	56,577	$	152,528	$	25,336	$	—	$	234,441
Accounts receivable, net	—		744,013		127,338		71,502		—		942,853
Inventories, net	—		304,972		27,382		20,570		—		352,924
Uniforms and other rental items in service	—		678,365		95,211		62,178		(17,268)		818,486
Income taxes, current	—		2,135		17,456		3,894		—		23,485
Prepaid expenses and other current assets	—		85,754		37,876		1,887		—		125,517
Total current assets	—		1,871,816		457,791		185,367		(17,268)		2,497,706
Property and equipment, net	—		980,850		351,800		102,216		—		1,434,866
Investments (1)	321,083		3,755,219		984,460		1,344,134		(6,192,098)		212,798
Goodwill	—		—		2,615,570		258,538		(112)		2,873,996
Service contracts, net	—		402,393		—		62,459		—		464,852
Operating lease right-of-use assets, net	—		136,339		15,547		13,283		—		165,169
Other assets, net	2,537,979		226,623		5,782,580		1,078		(8,295,667)		252,593
	$	2,859,062	$	7,373,240	$	10,207,748	$	1,967,075	$	(14,505,145)	$	7,901,980
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	(465,247)	$	(2,100,124)	$	2,821,104	$	(49,552)	$	37,067	$	243,248
Accrued compensation   and related liabilities	—		97,236		41,698		9,978		—		148,912
Accrued liabilities	—		85,636		329,595		15,412		—		430,643
Operating lease liabilities, current	—		35,108		4,784		4,151		—		44,043
Debt due within one year	—		199,800		—		—		—		199,800
Total current liabilities	(465,247)		(1,682,344)		3,197,181		(20,011)		37,067		1,066,646
Long-term liabilities:
Debt due after one year	—		2,539,156		—		—		—		2,539,156
Deferred income taxes	—		295,861		96,423		31,393		—		423,677
Operating lease liabilities	—		105,948		11,494		9,552		—		126,994
Accrued liabilities	—		189,728		214,926		16,544		—		421,198
Total long-term liabilities	—		3,130,693		322,843		57,489		—		3,511,025
Total shareholders’ equity	3,324,309		5,924,891		6,687,724		1,929,597		(14,542,212)		3,324,309
	$	2,859,062	$	7,373,240	$	10,207,748	$	1,967,075	$	(14,505,145)	$	7,901,980

⁽¹⁾       Investments include inter-company investment activity. Corp 2 and Subsidiary Guarantors hold $20.6 million and $192.2 million, respectively, of the $212.8 million consolidated net investments.

Consolidating Condensed Balance Sheet

As of May 31, 2019

(In thousands)

	Cintas Corporation		Corp. 2		Subsidiary Guarantors		Non- Guarantors		Eliminations		Cintas Corporation Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	54,963	$	13,151	$	28,531	$	—	$	96,645
Accounts receivable, net	—		719,914		121,803		68,403		—		910,120
Inventories, net	—		278,666		35,081		20,842		—		334,589
Uniforms and other rental items in service	—		645,862		90,458		60,061		(12,248)		784,133
Income taxes, current	—		(9,728)		11,722		5,481		—		7,475
Prepaid expenses and other current assets	—		81,117		20,334		1,867		—		103,318
Total current assets	—		1,770,794		292,549		185,185		(12,248)		2,236,280
Property and equipment, net	—		948,830		369,006		112,849		—		1,430,685
Investments (1)	321,083		3,589,234		964,802		1,716,870		(6,399,643)		192,346
Goodwill	—		—		2,586,406		256,147		(112)		2,842,441
Service contracts, net	—		427,437		—		67,158		—		494,595
Other assets, net	2,216,391		211,102		5,424,413		1,716		(7,613,307)		240,315
	$	2,537,474	$	6,947,397	$	9,637,176	$	2,339,925	$	(14,025,310)	$	7,436,662
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	(465,247)	$	(2,090,954)	$	2,793,558	$	(48,769)	$	37,432	$	226,020
Accrued compensation   and related liabilities	—		117,404		26,870		11,235		—		155,509
Accrued liabilities	—		84,296		328,267		21,377		—		433,940
Debt due within one year	—		312,264		—		—		—		312,264
Total current liabilities	(465,247)		(1,576,990)		3,148,695		(16,157)		37,432		1,127,733
Long-term liabilities:
Debt due after one year	—		2,537,507		—		—		—		2,537,507
Deferred income taxes	—		307,334		100,162		30,683		—		438,179
Accrued liabilities	—		116,469		197,934		16,119		—		330,522
Total long-term liabilities	—		2,961,310		298,096		46,802		—		3,306,208
Total shareholders’ equity	3,002,721		5,563,077		6,190,385		2,309,280		(14,062,742)		3,002,721
	$	2,537,474	$	6,947,397	$	9,637,176	$	2,339,925	$	(14,025,310)	$	7,436,662

⁽¹⁾      Investments include inter-company investment activity. Corp 2 and Subsidiary Guarantors hold $19.8 million and $172.5 million, respectively, of the $192.3 million consolidated net investments.

Consolidating Condensed Statement of Cash Flows

Consolidating Condensed Statement of Cash Flows

Nine Months Ended February 29, 2020

(In thousands)

	Cintas Corporation		Corp. 2		Subsidiary Guarantors		Non- Guarantors		Eliminations		Cintas Corporation Consolidated
Cash flows from operating activities:
Net income	$	731,452	$	224,873	$	497,208	$	22,561	$	(744,642)	$	731,452
Adjustments to reconcile net income to  net cash provided by operating activities
Depreciation	—		115,229		49,181		10,851		—		175,261
Amortization of intangible assets and capitalized contract costs	—		97,267		3,838		6,127		—		107,232
Stock-based compensation	96,428		—		—		—		—		96,428
Deferred income taxes	—		8,319		(3,735)		429		—		5,013
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—		(23,027)		(5,536)		(2,572)		—		(31,135)
Inventories, net	—		(25,914)		8,346		(212)		—		(17,780)
Uniforms and other rental items    in service	—		(32,368)		(4,754)		(1,630)		5,020		(33,732)
Prepaid expenses and other current assets and capitalized contract costs	—		(77,609)		(17,543)		(17)		—		(95,169)
Accounts payable	—		24,315		(9,136)		(543)		(365)		14,271
Accrued compensation and related liabilities	—		(20,168)		14,343		1,033		—		(4,792)
Accrued liabilities and other	—		(7,377)		13,777		(2,974)		—		3,426
Income taxes, current	—		(11,863)		(5,733)		1,670		—		(15,926)
Net cash provided by operating activities	827,880		271,677		540,256		34,723		(739,987)		934,549
Cash flows from investing activities:
Capital expenditures	—		(140,144)		(32,026)		(17,209)		—		(189,379)
Purchases of investments	—		(793)		(9,668)		—		—		(10,461)
Proceeds from sale of assets	—		—		—		13,300		—		13,300
Acquisitions of businesses, net of cash acquired	—		(47,777)		—		(73)		—		(47,850)
Other, net	(380,159)		31,121		(359,185)		(33,854)		739,987		(2,090)
Net cash used in investing activities	(380,159)		(157,593)		(400,879)		(37,836)		739,987		(236,480)
Cash flows from financing activities:
Payments of commercial paper, net	—		(112,500)		—		—		—		(112,500)
Proceeds from exercise of stock-based compensation awards	81,547		—		—		—		—		81,547
Dividends paid	(267,941)		—		—		(101)		—		(268,042)
Repurchase of common stock	(261,327)		—		—		—		—		(261,327)
Other, net	—		30		—		—		—		30
Net cash used in financing activities	(447,721)		(112,470)		—		(101)		—		(560,292)
Effect of exchange rate changes on cash     and cash equivalents	—		—		—		19		—		19
Net increase (decrease) in cash and cash equivalents	—		1,614		139,377		(3,195)		—		137,796
Cash and cash equivalents at beginning of period	—		54,963		13,151		28,531		—		96,645
Cash and cash equivalents at end of period	$	—	$	56,577	$	152,528	$	25,336	$	—	$	234,441

Consolidating Condensed Statement of Cash Flows

Nine Months Ended February 28, 2019

(In thousands)

	Cintas Corporation		Corp. 2		Subsidiary Guarantors		Non- Guarantors		Eliminations		Cintas Corporation Consolidated
Cash flows from operating activities:
Net income	$	658,862	$	178,279	$	453,598	$	18,567	$	(650,444)	$	658,862
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation	—		106,577		47,116		10,687		—		164,380
Amortization of intangible assets and capitalized contract costs	—		91,912		3,801		6,236		—		101,949
Stock-based compensation	105,553		—		—		—		—		105,553
Gain on sale of a cost method investment	—		—		(69,373)		—		—		(69,373)
Gain on sale of business	—		(2,419)		—		—		—		(2,419)
Deferred income taxes	—		16,059		5,654		3,366		—		25,079
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—		(51,317)		2,522		(8,027)		(4,280)		(61,102)
Inventories, net	—		(64,014)		1,395		(4,317)		(3,780)		(70,716)
Uniforms and other rental items in service	—		(51,696)		(12,329)		(8,311)		—		(72,336)
Prepaid expenses and other current assets and capitalized contract costs	—		(74,606)		(10,067)		(450)		—		(85,123)
Accounts payable	—		(205,528)		204,336		1,632		(361)		79
Accrued compensation and related    liabilities	—		1,832		(4,143)		(1,555)		—		(3,866)
Accrued liabilities and other	—		(274)		4,567		(679)		—		3,614
Income taxes, current	—		7,059		(24,957)		(5,966)		—		(23,864)
Net cash provided by (used in) operating    activities	764,415		(48,136)		602,120		11,183		(658,865)		670,717
Cash flows from investing activities:
Capital expenditures	—		(147,744)		(44,151)		(15,910)		—		(207,805)
Purchases of investments	—		(1,938)		(16,356)		—		750		(17,544)
Proceeds from sale of a cost method    investment	—		—		73,342		—		—		73,342
Proceeds from sale of business	—		3,200		—		—		—		3,200
Acquisitions of businesses, net of cash acquired	—		(7,403)		—		—		—		(7,403)
Other, net	10,201		(5,216)		(663,791)		(6,113)		658,115		(6,804)
Net cash provided by (used in) investing    activities	10,201		(159,101)		(650,956)		(22,023)		658,865		(163,014)
Cash flows from financing activities:
Issuance of commercial paper, net	—		217,500		—		—		—		217,500
Proceeds from exercise of stock-based compensation awards	54,274		—		—		—		—		54,274
Dividends paid	(220,666)		—		—		(94)		—		(220,760)
Repurchase of common stock	(608,224)		—		—		—		—		(608,224)
Other, net	—		(8,088)		—		—		—		(8,088)
Net cash (used in) provided by financing activities	(774,616)		209,412		—		(94)		—		(565,298)
Effect of exchange rate changes on cash and    cash equivalents	—		—		—		(270)		—		(270)
Net increase (decrease) in cash and cash    equivalents	—		2,175		(48,836)		(11,204)		—		(57,865)
Cash and cash equivalents at beginning of period	—		44,499		60,310		33,915		—		138,724
Cash and cash equivalents at end of period	$	—	$	46,674	$	11,474	$	22,711	$	—	$	80,859