Goodwill, Service Contracts and Other Assets

12 Months Ended

May 31, 2011

Goodwill, Service Contracts and Other Assets

Goodwill, Service Contracts and Other Assets

4. Goodwill, Service Contracts and Other Assets

Changes in the carrying amount of goodwill and service contracts for the fiscal years ended May 31, 2011 and 2010, by operating segment, are as follows:



Goodwill (in thousands)		Rental Uniforms & Ancillary Products			Uniform Direct Sales		First Aid, Safety & Fire Protection		Document Management			Total
Balance as of June 1, 2009	$	861,879		$	23,891	$	166,872	$	278,746		$	1,331,388
Goodwill (adj.) acquired		(1,401	)		—		15,095		12,528			26,222
Foreign currency translation		639			37		—		(1,361	)		(685	)

Balance as of May 31, 2010	$	861,117		$	23,928	$	181,967	$	289,913		$	1,356,925
Goodwill acquired		80,699			—		10,977		33,196			124,872
Foreign currency translation		1,361			67		—		4,657			6,085

Balance as of May 31, 2011	$	943,177		$	23,995	$	192,944	$	327,766		$	1,487,882



Service Contracts (in thousands)		Rental Uniforms & Ancillary Products			Uniform Direct Sales		First Aid, Safety & Fire Protection			Document Management			Total

Balance as of June 1, 2009	$	65,897		$	—	$	36,042		$	22,391		$	124,330
Service contracts acquired		—			—		5,897			4,500			10,397
Service contracts amortization		(18,081	)		—		(6,340	)		(7,545	)		(31,966	)
Foreign currency translation		895			—		—			(211	)		684

Balance as of May 31, 2010	$	48,711		$	—	$	35,599		$	19,135		$	103,445
Service contracts acquired		13,090			—		7,498			10,288			30,876
Service contracts amortization		(19,081	)		—		(7,219	)		(8,200	)		(34,500	)
Foreign currency translation		1,908			—		—			583			2,491

Balance as of May 31, 2011	$	44,628		$	—	$	35,878		$	21,806		$	102,312

Information regarding Cintas' service contracts and other assets is as follows:



		As of May 31, 2011

(In thousands)		Carrying Amount		Accumulated Amortization		Net
Service contracts	$	379,967	$	277,655	$	102,312

Noncompete and consulting agreements	$	76,091	$	63,982	$	12,109
Investments ⁽¹⁾		84,197		—		84,197
Other		23,135		4,690		18,445

Total	$	183,423	$	68,672	$	114,751



		As of May 31, 2010

(In thousands)		Carrying Amount		Accumulated Amortization		Net
Service contracts	$	346,569	$	243,124	$	103,445

Noncompete and consulting agreements	$	68,435	$	53,425	$	15,010
Investments ⁽¹⁾		68,616		—		68,616
Other		14,598		4,242		10,356

Total	$	151,649	$	57,667	$	93,982

(1): Investments at May 31, 2011, include the cash surrender value of insurance policies of $51.1 million, equity method investments of $30.2 million and cost method investments of $2.9 million. Investments at May 31, 2010, include the cash surrender value of insurance policies of $34.3 million, equity method investments of $30.0 million and cost method investments of $4.3 million.

Amortization expense was $42.6 million, $41.1 million and $42.5 million for the fiscal years ended May 31, 2011, 2010 and 2009, respectively. Estimated amortization expense, excluding any future acquisitions, for each of the next five years is $36.9 million, $20.1 million, $16.8 million, $14.1 million and $8.9 million, respectively.

Investments recorded using the cost method are evaluated for impairment on an annual basis or when indicators of impairment are identified. For fiscal 2011 and 2010, no losses due to impairment were recorded.