XML 28 R16.htm IDEA: XBRL DOCUMENT v3.20.4
Goodwill, Service Contracts and Other Assets
6 Months Ended
Nov. 30, 2020
Goodwill, Service Contracts And Other Assets [Abstract]  
Goodwill, Service Contracts and Other Assets Goodwill, Service Contracts and Other Assets
Changes in the carrying amount of goodwill and service contracts for the six months ended November 30, 2020, by reportable operating segment and All Other, are as follows:
Goodwill
(in thousands)
Uniform Rental
and Facility Services
First Aid
and Safety Services
All
Other
Total
Balance as of June 1, 2020$2,513,041 $243,266 $113,713 $2,870,020 
Goodwill acquired1,568 2,165 562 4,295 
Foreign currency translation14,252 1,146 41 15,439 
Balance as of November 30, 2020$2,528,861 $246,577 $114,316 $2,889,754 

Service Contracts
(in thousands)
Uniform Rental
and Facility Services
First Aid
and Safety Services
All
Other
Total
Balance as of June 1, 2020$407,611 $19,805 $24,113 $451,529 
Service contracts acquired2,369 1,748 282 4,399 
Service contracts amortization(24,224)(1,907)(2,497)(28,628)
Foreign currency translation3,541 82 — 3,623 
Balance as of November 30, 2020$389,297 $19,728 $21,898 $430,923 

Information regarding Cintas’ service contracts and other assets is as follows:
 As of November 30, 2020
(In thousands)Carrying
Amount
Accumulated
Amortization
Net
Service contracts$951,946 $521,023 $430,923 
Capitalized contract costs (1)
$421,993 $189,988 $232,005 
Noncompete and consulting agreements44,383 41,836 2,547 
Other69,652 23,710 45,942 
Total other assets$536,028 $255,534 $280,494 

 As of May 31, 2020
(In thousands)Carrying
Amount
Accumulated
Amortization
Net
Service contracts$941,383 $489,854 $451,529 
Capitalized contract costs (1)
$375,912 $148,853 $227,059 
Noncompete and consulting agreements43,890 41,317 2,573 
Other54,239 23,113 31,126 
Total other assets$474,041 $213,283 $260,758 
(1)    The current portion of capitalized contract costs, included in prepaid expenses and other current assets on the consolidated condensed balance sheets as of November 30, 2020 and May 31, 2020, is $78.7 million and $76.2 million, respectively.
Amortization expense for service contracts and other assets was $35.4 million and $35.3 million for the three months ended November 30, 2020 and 2019, respectively. For the six months ended November 30, 2020 and 2019, amortization expense for service contracts and other assets was $70.5 million and $69.9 million, respectively. As of November 30, 2020, the estimated future amortization expense for service contracts and other assets, excluding any future acquisitions and commissions to be earned, is as follows:
Fiscal Year (In thousands)
2021 (remaining six months)
$69,901 
2022130,427 
2023111,191 
202499,082 
202586,188 
Thereafter250,294 
Total future amortization expense$747,083