Discontinued Operations

12 Months Ended

May 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

In fiscal 2018, Cintas sold a significant business referred to as Discontinued Services and received $127.8 million of proceeds from the sale. Prior to the sale, Discontinued Services was primarily included in All Other and was classified as held for sale. In fiscal 2016, Cintas sold the investment in the Shred-it Partnership (Shred-it). In accordance with the applicable accounting guidance for the disposal of long-lived assets, the results of Discontinued Services and Shred-it have been excluded from both continuing operations and operating segment results for all periods presented.

During fiscal 2020 and 2019, we received additional proceeds related to contingent consideration on the sale of Shred-it and realized a pre-tax gain of $0.2 million and $3.2 million, respectively.

Following is selected financial information included in net income from discontinued operations for Discontinued Services and Shred-it for the fiscal years ended May 31:

(In thousands)	2020		2019		2018
Revenue	$	—	$	—	$	10,773
Loss before income taxes, excluding gains from sale transactions and investments	(646)		(97)		(2,433)
Income tax benefit	160		24		706
Gain on sale of business	216		3,200		96,400
Income tax expense on net gain	(53)		(781)		(36,019)
Net (loss) income from discontinued operations	$	(323)	$	2,346	$	58,654