Supplemental Guarantor Information

6 Months Ended

Nov. 30, 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 aggregate principal amount 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 November 30, 2012

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Revenue:
Rental uniforms and ancillary products	$	—	$	575,274		$	152,771		$	55,370		$	(27,576	)	$	755,839
Other services	—		387,265			10,630			28,964			(122,312		)	304,547
Equity in net income of affiliates	78,027		—			—			—			(78,027		)	—
	78,027		962,539			163,401			84,334			(227,915		)	1,060,386
Costs and expenses (income):
Cost of rental uniforms and ancillary products	—		367,645			95,014			38,923			(62,680		)	438,902
Cost of other services	—		256,524			(6,949		)	18,564			(78,691		)	189,448
Selling and administrative expenses	—		280,259			(7,023		)	23,705			(3,928		)	293,013
Operating income	78,027		58,111			82,359			3,142			(82,616		)	139,023
Interest income	—		(13		)	(126		)	(10		)	—			(149		)
Interest expense (income)	—		16,277			18			(1		)	—			16,294
Income before income taxes	78,027		41,847			82,467			3,153			(82,616		)	122,878
Income taxes	—		14,876			29,241			746			(12		)	44,851
Net income	$	78,027	$	26,971		$	53,226		$	2,407		$	(82,604	)	$	78,027

Condensed Consolidating Income Statement

Three Months Ended November 30, 2011

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Revenue:
Rental uniforms and ancillary products	$	—	$	558,143		$	141,673		$	51,276		$	(28,303	)	$	722,789
Other services	—		367,926			14,511			28,838			(114,938		)	296,337
Equity in net income of affiliates	74,350		—			—			—			(74,350		)	—
	74,350		926,069			156,184			80,114			(217,591		)	1,019,126
Costs and expenses (income):
Cost of rental uniforms and ancillary products	—		356,105			83,939			35,270			(65,067		)	410,247
Cost of other services	—		236,673			3,794			18,305			(79,690		)	179,082
Selling and administrative expenses	—		266,206			7,402			26,181			(2,677		)	297,112
Operating income	74,350		67,085			61,049			358			(70,157		)	132,685
Interest income	—		(77		)	(111		)	(215		)	—			(403		)
Interest expense (income)	—		17,813			(433		)	348			—			17,728
Income before income taxes	74,350		49,349			61,593			225			(70,157		)	115,360
Income taxes	—		18,231			22,753			36			(10		)	41,010
Net income	$	74,350	$	31,118		$	38,840		$	189		$	(70,147	)	$	74,350

Condensed Consolidating Income Statement

Six Months Ended November 30, 2012

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Revenue:
Rental uniforms and ancillary products	$	—	$	1,151,559		$	305,588		$	109,154		$	(55,619	)	$	1,510,682
Other services	—		756,671			21,509			58,342			(235,493		)	601,029
Equity in net income of affiliates	154,760		—			—			—			(154,760		)	—
	154,760		1,908,230			327,097			167,496			(445,872		)	2,111,711
Costs and expenses (income):
Cost of rental uniforms and ancillary products	—		731,842			184,356			75,543			(124,691		)	867,050
Cost of other services	—		492,855			(9,366		)	36,272			(153,011		)	366,750
Selling and administrative expenses	—		570,903			(11,162		)	48,006			(8,153		)	599,594
Operating income	154,760		112,630			163,269			7,675			(160,017		)	278,317
Interest income	—		(31		)	(161		)	(34		)	—			(226		)
Interest expense	—		32,843			49			—			—			32,892
Income before income taxes	154,760		79,818			163,381			7,709			(160,017		)	245,651
Income taxes	—		29,255			59,883			1,770			(17		)	90,891
Net income	$	154,760	$	50,563		$	103,498		$	5,939		$	(160,000	)	$	154,760

Condensed Consolidating Income Statement

Six Months Ended November 30, 2011

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Revenue:
Rental uniforms and ancillary products	$	—	$	1,111,891		$	283,588		$	103,859		$	(57,126	)	$	1,442,212
Other services	—		725,658			31,672			58,640			(221,876		)	594,094
Equity in net income of affiliates	142,988		—			—			—			(142,988		)	—
	142,988		1,837,549			315,260			162,499			(421,990		)	2,036,306
Costs and expenses (income):
Cost of rental uniforms and ancillary products	—		702,881			168,291			71,179			(128,698		)	813,653
Cost of other services	—		457,505			1,734			36,130			(141,553		)	353,816
Selling and administrative expenses	—		541,823			23,397			48,465			(6,107		)	607,578
Operating income	142,988		135,340			121,838			6,725			(145,632		)	261,259
Interest income	—		(157		)	(238		)	(373		)	—			(768		)
Interest expense (income)	—		35,589			(881		)	354			—			35,062
Income before income taxes	142,988		99,908			122,957			6,744			(145,632		)	226,965
Income taxes	—		36,897			45,409			1,683			(12		)	83,977
Net income	$	142,988	$	63,011		$	77,548		$	5,061		$	(145,620	)	$	142,988

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended November 30, 2012

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Net income	$	78,027	$	26,971		$	53,226		$	2,407		$	(82,604	)	$	78,027
Other comprehensive income (loss), net of tax:
Foreign currency translation            adjustments	—		(1		)	—			1,676			—			1,675
Change in fair value of derivatives	—		—			—			—			—			—
Amortization of interest rate lock           agreements	—		488			—			—			—			488
Change in fair value of available-for-           sale securities	—		—			(7		)	(3		)	—			(10		)
Other comprehensive income	—		487			(7		)	1,673			—			2,153
Comprehensive income	$	78,027	$	27,458		$	53,219		$	4,080		$	(82,604	)	$	80,180

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended November 30, 2011

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors		Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Net income	$	74,350	$	31,118		$	38,840	$	189		$	(70,147	)	$	74,350
Other comprehensive income (loss), net of tax:
Foreign currency translation            adjustments	—		(34		)	—		(20,730		)	—			(20,764		)
Change in fair value of derivatives	—		124			—		(97		)	—			27
Amortization of interest rate lock           agreements	—		377			—		—			—			377
Change in fair value of available-for-           sale securities	—		—			—		7			—			7
Other comprehensive income	—		467			—		(20,820		)	—			(20,353		)
Comprehensive income	$	74,350	$	31,585		$	38,840	$	(20,631	)	$	(70,147	)	$	53,997

Condensed Consolidating Statement of Comprehensive Income

Six Months Ended November 30, 2012

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Net income	$	154,760	$	50,563		$	103,498		$	5,939		$	(160,000	)	$	154,760
Other comprehensive income (loss), net of tax:
Foreign currency translation            adjustments	—		7			—			8,685			—			8,692
Change in fair value of derivatives	—		(151		)	—			—			—			(151		)
Amortization of interest rate lock           agreements	—		976			—			—			—			976
Change in fair value of available-for-           sale securities	—		—			(7		)	(5		)	—			(12		)
Other comprehensive income	—		832			(7		)	8,680			—			9,505
Comprehensive income	$	154,760	$	51,395		$	103,491		$	14,619		$	(160,000	)	$	164,265

Condensed Consolidating Statement of Comprehensive Income

Six Months Ended November 30, 2011

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors		Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Net income	$	142,988	$	63,011		$	77,548	$	5,061		$	(145,620	)	$	142,988
Other comprehensive income (loss), net of tax:
Foreign currency translation            adjustments	—		(35		)	—		(20,511		)	—			(20,546		)
Change in fair value of derivatives	—		207			—		(26		)	—			181
Amortization of interest rate lock           agreements	—		754			—		—			—			754
Change in fair value of available-for-           sale securities	—		—			—		25			—			25
Other comprehensive income	—		926			—		(20,512		)	—			(19,586		)
Comprehensive income	$	142,988	$	63,937		$	77,548	$	(15,451	)	$	(145,620	)	$	123,402

Condensed Consolidating Balance Sheet

As of November 30, 2012

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors		Eliminations			Cintas Corporation Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		$	45,036		$	167,453		$	29,998	$	—		$	242,487
Marketable securities	—			—			9,781			24,081		—			33,862
Accounts receivable, net	—			350,351			88,484			40,271		—			479,106
Inventories, net	—			200,445			22,519			10,545		2,686			236,195
Uniforms and other rental items in service	—			353,213			110,312			37,406		(18,930		)	482,001
Income taxes, current	—			(5,510		)	12,009			14,477		—			20,976
Prepaid expenses and other	—			7,766			13,940			3,329		—			25,035
Total current assets	—			951,301			424,498			160,107		(16,244		)	1,519,662
Property and equipment, at cost, net	—			612,243			263,130			91,887		—			967,260
Goodwill	—			—			1,452,020			70,391		—			1,522,411
Service contracts, net	—			85,481			229			4,770		—			90,480
Other assets, net	1,569,229			1,627,395			2,633,892			760,007		(6,472,454		)	118,069
	$	1,569,229		$	3,276,420		$	4,773,769		$	1,087,162	$	(6,488,698	)	$	4,217,882
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	(465,247	)	$	(549,502	)	$	1,075,016		$	20,248	$	38,019		$	118,534
Accrued compensation and related liabilities	—			37,444			12,359			4,677		—			54,480
Accrued liabilities	—			64,319			249,467			11,291		—			325,077
Deferred tax (asset) liability	—			(557		)	53,401			3,583		—			56,427
Long-term debt due within one year	—			910			(249		)	—		—			661
Total current liabilities	(465,247		)	(447,386		)	1,389,994			39,799		38,019			555,179
Long-term liabilities:
Long-term debt due after one year	—			1,318,234			(10,253		)	848		—			1,308,829
Deferred income taxes	—			(7		)	200,880			5,909		—			206,782
Accrued liabilities	—			—			65,541			907		—			66,448
Total long-term liabilities	—			1,318,227			256,168			7,664		—			1,582,059
Total shareholders’ equity	2,034,476			2,405,579			3,127,607			1,039,699		(6,526,717		)	2,080,644
	$	1,569,229		$	3,276,420		$	4,773,769		$	1,087,162	$	(6,488,698	)	$	4,217,882

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

Six Months Ended November 30, 2012

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Cash flows from operating activities:
Net income	$	154,760		$	50,563		$	103,498		$	5,939		$	(160,000	)	$	154,760
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	—			48,061			26,608			6,652			—			81,321
Amortization of intangible assets	—			10,318			117			1,538			—			11,973
Stock-based compensation	11,084			—			—			—			—			11,084
Deferred income taxes	—			(1		)	54,959			287			—			55,245
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(20,450		)	(7,242		)	3,164			—			(24,528		)
Inventories, net	—			9,838			(2,262		)	687			7,197			15,460
Uniforms and other rental items in service	—			(15,915		)	(8,877		)	(1,244		)	(2,069		)	(28,105		)
Prepaid expenses and other	—			152			(1,170		)	816			—			(202		)
Accounts payable	—			(41,309		)	63,503			825			—			23,019
Accrued compensation and related liabilities	—			(26,353		)	(9,260		)	(1,286		)	—			(36,899		)
Accrued liabilities	—			(7,450		)	(27,362		)	(2,438		)	786			(36,464		)
Income taxes payable	—			10,815			(8,365		)	(1,851		)	—			599
Net cash provided by (used in) operating activities	165,844			18,269			184,147			13,089			(154,086		)	227,263
Cash flows from investing activities:
Capital expenditures	—			(57,660		)	(29,923		)	(11,479		)	—			(99,062		)
Proceeds from redemption of marketable securities	—			—			1,065			40,388			—			41,453
Purchase of marketable securities and investments	—			557			(17,931		)	(64,295		)	1,615			(80,054		)
Acquisitions of businesses, net of cash acquired	—			(51,984		)	—			(1,259		)	—			(53,243		)
Other	(11,749		)	57,625			(201,693		)	1,887			153,257			(673		)
Net cash (used in) provided by investing activities	(11,749		)	(51,462		)	(248,482		)	(34,758		)	154,872			(191,579		)
Cash flows from financing activities:
Proceeds from issuance of debt	—			250,000			—			—			—			250,000
Repayment of debt	—			(225,542		)	1,016			—			(786		)	(225,312		)
Exercise of stock-based compensation awards	2,357			—			—			—			—			2,357
Repurchase of common stock	(159,175		)	—			—			—			—			(159,175		)
Other	2,723			(4,965		)	—			(234		)	—			(2,476		)
Net cash (used in) provided by financing activities	(154,095		)	19,493			1,016			(234		)	(786		)	(134,606		)
Effect of exchange rate changes on cash and cash equivalents	—			(1		)	1,485			100			—			1,584
Net decrease in cash and cash equivalents	—			(13,701		)	(61,834		)	(21,803		)	—			(97,338		)
Cash and cash equivalents at beginning of period	—			58,737			229,287			51,801			—			339,825
Cash and cash equivalents at end of period	$	—		$	45,036		$	167,453		$	29,998		$	—		$	242,487

Condensed Consolidating Statement of Cash Flows

Six Months Ended November 30, 2011

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Cash flows from operating activities:
Net income	$	142,988		$	63,011		$	77,548		$	5,061		$	(145,620	)	$	142,988
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	—			47,021			23,527			6,374			—			76,922
Amortization of intangible assets	—			17,305			205			2,594			—			20,104
Stock-based compensation	9,756			—			—			—			—			9,756
Deferred income taxes	—			—			(12,396		)	629			—			(11,767		)
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(14,793		)	(4,301		)	(1,756		)	—			(20,850		)
Inventories, net	—			(42,583		)	3,246			790			(721		)	(39,268		)
Uniforms and other rental items in service	—			(22,332		)	(9,748		)	(903		)	3,353			(29,630		)
Prepaid expenses and other	—			(974		)	(4,476		)	322			—			(5,128		)
Accounts payable	—			(51,087		)	42,294			10,636			—			1,843
Accrued compensation and related liabilities	—			(10,318		)	(4,813		)	(183		)	—			(15,314		)
Accrued liabilities	—			4,485			25,936			(4,919		)	804			26,306
Income taxes payable	—			8,586			10,178			1,232			—			19,996
Net cash provided by (used in) operating activities	152,744			(1,679		)	147,200			19,877			(142,184		)	175,958
Cash flows from investing activities:
Capital expenditures	—			(50,166		)	(23,731		)	(5,935		)	—			(79,832		)
Proceeds from redemption of marketable securities	—			—			—			140,162			—			140,162
Purchase of marketable securities and investments	—			(1,282		)	(33,394		)	(189,255		)	30,404			(193,527		)
Acquisitions of businesses, net of cash acquired	—			(9,831		)	(65		)	(4,655		)	—			(14,551		)
Other	109,311			52,721			(268,817		)	(27		)	112,584			5,772
Net cash provided by (used in) investing activities	109,311			(8,558		)	(326,007		)	(59,710		)	142,988			(141,976		)
Cash flows from financing activities:
Repayment of debt	—			(522		)	423			—			(804		)	(903		)
Exercise of stock-based compensation awards	78			—			—			—			—			78
Repurchase of common stock	(262,682		)	—			—			—			—			(262,682		)
Other	549			754			—			151			—			1,454
Net cash (used in) provided by financing activities	(262,055		)	232			423			151			(804		)	(262,053		)
Effect of exchange rate changes on cash and cash equivalents	—			(182		)	—			(2,081		)	—			(2,263		)
Net decrease in cash and cash equivalents	—			(10,187		)	(178,384		)	(41,763		)	—			(230,334		)
Cash and cash equivalents at beginning of period	—			54,957			313,283			69,866			—			438,106
Cash and cash equivalents at end of period	$	—		$	44,770		$	134,899		$	28,103		$	—		$	207,772