Supplemental Guarantor Information

3 Months Ended

Aug. 31, 2012

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Supplemental Guarantor Information

Supplemental Guarantor Information

Cintas Corporation No. 2 (Corp. 2) is the indirectly, wholly-owned principal operating subsidiary of Cintas.  Corp. 2 is the issuer of the $1,300.0 million of long-term senior notes, which are unconditionally guaranteed, jointly and severally, by Cintas Corporation and its wholly-owned, direct and indirect domestic subsidiaries.

As allowed by SEC rules, the following condensed consolidating financial statements are provided as an alternative to filing separate financial statements of the guarantors.  Each of the subsidiaries presented in the following condensed consolidating financial statements has been fully consolidated in Cintas’ consolidated financial statements.  The following condensed consolidating financial statements should be read in conjunction with the consolidated financial statements of Cintas and notes thereto of which this note is an integral part.

Condensed consolidating financial statements for Cintas, Corp. 2, the subsidiary guarantors and non-guarantors are presented on the following pages: 

Condensed Consolidating Income Statement

Three Months Ended August 31, 2012

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Revenue:
Rental uniforms and ancillary products	$	—	$	576,285		$	152,817		$	53,784		$	(28,043	)	$	754,843
Other services	—		369,406			10,879			29,378			(113,181		)	296,482
Equity in net income of affiliates	76,733		—			—			—			(76,733		)	—
	76,733		945,691			163,696			83,162			(217,957		)	1,051,325
Costs and expenses (income):
Cost of rental uniforms and ancillary products	—		364,197			89,342			36,620			(62,011		)	428,148
Cost of other services	—		236,331			(2,417		)	17,708			(74,320		)	177,302
Selling and administrative expenses	—		290,644			(4,139		)	24,301			(4,225		)	306,581
Operating income	76,733		54,519			80,910			4,533			(77,401		)	139,294
Interest income	—		(18		)	(35		)	(24		)	—			(77		)
Interest expense	—		16,566			31			1			—			16,598
Income before income taxes	76,733		37,971			80,914			4,556			(77,401		)	122,773
Income taxes	—		14,379			30,642			1,024			(5		)	46,040
Net income	$	76,733	$	23,592		$	50,272		$	3,532		$	(77,396	)	$	76,733

Condensed Consolidating Income Statement

Three Months Ended August 31, 2011

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Revenue:
Rental uniforms and ancillary products	$	—	$	553,748		$	141,915		$	52,583		$	(28,823	)	$	719,423
Other services	—		357,732			17,161			29,802			(106,938		)	297,757
Equity in net income of affiliates	68,638		—			—			—			(68,638		)	—
	68,638		911,480			159,076			82,385			(204,399		)	1,017,180
Costs and expenses (income):
Cost of rental uniforms and ancillary products	—		346,775			84,352			35,909			(63,630		)	403,406
Cost of other services	—		220,833			(2,060		)	17,825			(61,864		)	174,734
Selling and administrative expenses	—		275,617			15,995			22,284			(3,430		)	310,466
Operating income	68,638		68,255			60,789			6,367			(75,475		)	128,574
Interest income	—		(80		)	(127		)	(158		)	—			(365		)
Interest expense (income)	—		17,776			(448		)	6			—			17,334
Income before income taxes	68,638		50,559			61,364			6,519			(75,475		)	111,605
Income taxes	—		18,666			22,656			1,647			(2		)	42,967
Net income	$	68,638	$	31,893		$	38,708		$	4,872		$	(75,473	)	$	68,638

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended August 31, 2012

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors		Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Net income	$	76,733	$	23,592		$	50,272	$	3,532		$	(77,396	)	$	76,733
Other comprehensive income (loss), net of tax:
Foreign currency translation            adjustments	—		8			—		7,009			—			7,017
Change in fair value of derivatives	—		(151		)	—		—			—			(151		)
Amortization of interest rate lock           agreements	—		488			—		—			—			488
Change in fair value of available-for-           sale securities	—		—			—		(2		)	—			(2		)
Other comprehensive income	—		345			—		7,007			—			7,352
Comprehensive income	$	76,733	$	23,937		$	50,272	$	10,539		$	(77,396	)	$	84,085

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended August 31, 2011

(In thousands)

	Cintas Corporation		Corp. 2		Subsidiary Guarantors		Non- Guarantors		Eliminations			Cintas Corporation Consolidated
Net income	$	68,638	$	31,893	$	38,708	$	4,872	$	(75,473	)	$	68,638
Other comprehensive income (loss), net of tax:
Foreign currency translation            adjustments	—		—		—		218		—			218
Change in fair value of derivatives	—		82		—		71		—			153
Amortization of interest rate lock           agreements	—		377		—		—		—			377
Change in fair value of available-for-           sale securities	—		—		—		18		—			18
Other comprehensive income	—		459		—		307		—			766
Comprehensive income	$	68,638	$	32,352	$	38,708	$	5,179	$	(75,473	)	$	69,404

Condensed Consolidating Balance Sheet

As of August 31, 2012

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		$	69,882		$	211,194		$	38,141		$	—		$	319,217
Marketable securities	—			—			—			10,948			—			10,948
Accounts receivable, net	—			336,900			82,233			40,169			—			459,302
Inventories, net	—			202,689			19,997			10,893			8,120			241,699
Uniforms and other rental items in service	—			341,438			105,298			35,591			(19,786		)	462,541
Prepaid expenses and other	—			7,704			18,248			4,218			—			30,170
Total current assets	—			958,613			436,970			139,960			(11,666		)	1,523,877
Property and equipment, at cost, net	—			603,680			261,647			88,434			—			953,761
Goodwill	—			—			1,420,051			69,053			—			1,489,104
Service contracts, net	—			67,134			261			4,902			—			72,297
Other assets, net	1,645,153			1,627,262			2,547,273			758,233			(6,464,725		)	113,196
	$	1,645,153		$	3,256,689		$	4,666,202		$	1,060,582		$	(6,476,391	)	$	4,152,235
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	(465,247	)	$	(510,373	)	$	1,032,986		$	15,521		$	38,019		$	110,906
Accrued compensation and related liabilities	—			28,271			8,884			3,376			—			40,531
Accrued liabilities	—			41,394			160,562			11,484			—			213,440
Income taxes, current	—			540			20,991			(13,601		)	—			7,930
Deferred tax (asset) liability	—			(558		)	7,957			3,269			—			10,668
Long-term debt due within one year	—			885			(249		)	—			—			636
Total current liabilities	(465,247		)	(439,841		)	1,231,131			20,049			38,019			384,111
Long-term liabilities:
Long-term debt due after one year	—			1,318,417			(10,253		)	848			—			1,309,012
Deferred income taxes	—			(6		)	201,124			5,738			—			206,856
Accrued liabilities	—			—			97,088			753			—			97,841
Total long-term liabilities	—			1,318,411			287,959			7,339			—			1,613,709
Total shareholders’ equity	2,110,400			2,378,119			3,147,112			1,033,194			(6,514,410		)	2,154,415
	$	1,645,153		$	3,256,689		$	4,666,202		$	1,060,582		$	(6,476,391	)	$	4,152,235

Condensed Consolidating Balance Sheet

As of May 31, 2012

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors		Eliminations			Cintas Corporation Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		$	58,737		$	229,287		$	51,801	$	—		$	339,825
Accounts receivable, net	—			327,442			81,243			42,176		—			450,861
Inventories, net	—			210,283			20,258			10,781		9,883			251,205
Uniforms and other rental items in service	—			337,298			101,435			35,051		(20,999		)	452,785
Income taxes, current	—			5,296			3,642			13,250		—			22,188
Prepaid expenses and other	—			7,905			12,770			4,029		—			24,704
Total current assets	—			946,961			448,635			157,088		(11,116		)	1,541,568
Property and equipment, at cost, net	—			600,565			259,744			83,996		—			944,305
Goodwill	—			—			1,419,535			65,840		—			1,485,375
Service contracts, net	—			71,337			326			5,159		—			76,822
Other assets, net	1,637,225			1,628,516			2,467,198			759,439		(6,379,542		)	112,836
	$	1,637,225		$	3,247,379		$	4,595,438		$	1,071,522	$	(6,390,658	)	$	4,160,906
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	(465,247	)	$	(475,624	)	$	978,932		$	18,760	$	38,019		$	94,840
Accrued compensation and related liabilities	—			63,797			21,619			5,798		—			91,214
Accrued liabilities	—			67,651			176,220			13,557		(786		)	256,642
Deferred tax (asset) liability	—			(538		)	(87		)	3,184		—			2,559
Long-term debt due within one year	—			225,866			(230		)	—		—			225,636
Total current liabilities	(465,247		)	(118,848		)	1,176,454			41,299		37,233			670,891
Long-term liabilities:
Long-term debt due after one year	—			1,068,820			(11,288		)	848		786			1,059,166
Deferred income taxes	—			(6		)	199,404			5,183		—			204,581
Accrued liabilities	—			—			86,406			727		—			87,133
Total long-term liabilities	—			1,068,814			274,522			6,758		786			1,350,880
Total shareholders’ equity	2,102,472			2,297,413			3,144,462			1,023,465		(6,428,677		)	2,139,135
	$	1,637,225		$	3,247,379		$	4,595,438		$	1,071,522	$	(6,390,658	)	$	4,160,906

Condensed Consolidating Statement of Cash Flows

Three Months Ended August 31, 2012

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Cash flows from operating activities:
Net income	$	76,733		$	23,592		$	50,272		$	3,532		$	(77,396	)	$	76,733
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	—			23,845			13,280			3,217			—			40,342
Amortization of deferred charges	—			5,127			75			898			—			6,100
Stock-based compensation	5,448			—			—			—			—			5,448
Deferred income taxes	—			—			9,764			(48		)	—			9,716
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(9,426		)	(880		)	3,178			—			(7,128		)
Inventories, net	—			7,594			261			271			1,763			9,889
Uniforms and other rental items in service	—			(4,140		)	(3,864		)	545			(1,213		)	(8,672		)
Prepaid expenses and other	—			201			(5,478		)	(115		)	—			(5,392		)
Accounts payable	—			(34,149		)	53,816			(3,389		)	—			16,278
Accrued compensation and related liabilities	—			(35,526		)	(12,735		)	(2,532		)	—			(50,793		)
Accrued liabilities	—			(20,442		)	(4,977		)	(2,767		)	786			(27,400		)
Income taxes payable	—			5,845			24,635			(736		)	—			29,744
Net cash provided by (used in) operating activities	82,181			(37,479		)	124,169			2,054			(76,060		)	94,865
Cash flows from investing activities:
Capital expenditures	—			(26,987		)	(15,169		)	(5,282		)	—			(47,438		)
Proceeds from redemption of marketable securities	—			—			—			24,720			—			24,720
Purchase of marketable securities and investments	—			529			(1,244		)	(35,445		)	(810		)	(36,970		)
Acquisitions of businesses, net of cash acquired	—			(1,343		)	—			(787		)	—			(2,130		)
Other	(7,928		)	57,262			(126,388		)	(25		)	77,656			577
Net cash (used in) provided by investing activities	(7,928		)	29,461			(142,801		)	(16,819		)	76,846			(61,241		)
Cash flows from financing activities:
Proceeds from issuance of debt	—			250,000			(477		)	477			—			250,000
Repayment of debt	—			(225,384		)	1,016			—			(786		)	(225,154		)
Exercise of stock-based compensation awards	1,119			—			—			—			—			1,119
Repurchase of common stock	(77,953		)	—			—			—			—			(77,953		)
Other	2,581			(5,453		)	—			(619		)	—			(3,491		)
Net cash (used in) provided by financing activities	(74,253		)	19,163			539			(142		)	(786		)	(55,479		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			1,247			—			1,247
Net increase (decrease) in cash and cash     equivalents	—			11,145			(18,093		)	(13,660		)	—			(20,608		)
Cash and cash equivalents at beginning of period	—			58,737			229,287			51,801			—			339,825
Cash and cash equivalents at end of period	$	—		$	69,882		$	211,194		$	38,141		$	—		$	319,217

Condensed Consolidating Statement of Cash Flows

Three Months Ended August 31, 2011

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Cash flows from operating activities:
Net income	$	68,638		$	31,893		$	38,708		$	4,872		$	(75,473	)	$	68,638
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	—			23,365			11,711			3,201			—			38,277
Amortization of deferred charges	—			8,789			103			1,341			—			10,233
Stock-based compensation	4,522			—			—			—			—			4,522
Deferred income taxes	—			(2		)	(7,901		)	95			—			(7,808		)
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(5,811		)	(2,555		)	(1,776		)	—			(10,142		)
Inventories, net	—			(29,331		)	(4,800		)	(164		)	3,525			(30,770		)
Uniforms and other rental items in service	—			(10,416		)	(3,874		)	(143		)	3,309			(11,124		)
Prepaid expenses and other	—			264			(6,316		)	69			—			(5,983		)
Accounts payable	—			(25,392		)	11,474			4,589			—			(9,329		)
Accrued compensation and related liabilities	—			(18,198		)	(8,170		)	(1,243		)	—			(27,611		)
Accrued liabilities	—			(11,479		)	3,132			(2,658		)	804			(10,201		)
Income taxes payable	—			5,400			40,452			2,008			—			47,860
Net cash provided by (used in) operating activities	73,160			(30,918		)	71,964			10,191			(67,835		)	56,562
Cash flows from investing activities:
Capital expenditures	—			(22,735		)	(18,184		)	(3,502		)	—			(44,421		)
Proceeds from redemption of marketable securities	—			—			—			63,561			—			63,561
Purchase of marketable securities and investments	—			(649		)	(7,743		)	(103,418		)	4,665			(107,145		)
Acquisitions of businesses, net of cash acquired	—			(870		)	—			—			—			(870		)
Other	188,930			53,667			(300,031		)	(1		)	63,974			6,539
Net cash provided by (used in) investing activities	188,930			29,413			(325,958		)	(43,360		)	68,639			(82,336		)
Cash flows from financing activities:
Repayment of debt	—			(359		)	719			—			(804		)	(444		)
Exercise of stock-based compensation awards	—			—			—			—			—			—
Dividends paid	—			—			—			—			—			—
Repurchase of common stock	(262,639		)	—			—			—			—			(262,639		)
Other	549			377			—			—			—			926
Net cash (used in) provided by financing activities	(262,090		)	18			719			—			(804		)	(262,157		)
Effect of exchange rate changes on cash and cash equivalents	—			(4		)	—			141			—			137
Net decrease in cash and cash equivalents	—			(1,491		)	(253,275		)	(33,028		)	—			(287,794		)
Cash and cash equivalents at beginning of period	—			54,957			313,283			69,866			—			438,106
Cash and cash equivalents at end of period	$	—		$	53,466		$	60,008		$	36,838		$	—		$	150,312