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 August 31, 2014

(In thousands)



	Cintas Corporation		Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated

Revenue:
Rental uniforms and ancillary products	$	—	$	658,987		$	176,706		$	56,281		$	(35,102	)	$	856,872
Other services	—		343,367			6,956			17,324			(122,442		)	245,205
Equity in net income of affiliates	109,791		—			—			—			(109,791		)	—
	109,791		1,002,354			183,662			73,605			(267,335		)	1,102,077
Costs and expenses (income):
Cost of rental uniforms and ancillary products	—		398,272			104,159			37,976			(69,798		)	470,609
Cost of other services	—		228,239			(5,149		)	11,267			(80,835		)	153,522
Selling and administrative expenses	—		314,003			(12,954		)	19,074			(5,665		)	314,458
Operating income	109,791		61,840			97,606			5,288			(111,037		)	163,488

Gain on deconsolidation of Shredding business	—		6,619			—			—			—			6,619

Gain on sale of stock of an equity method investment	—		—			21,739			—			—			21,739

Interest income	—		(5		)	(48		)	—			—			(53		)
Interest expense	—		16,409			170			4			—			16,583

Income before income taxes	109,791		52,055			119,223			5,284			(111,037		)	175,316
Income taxes	—		19,278			44,207			2,051			(11		)	65,525
Income from continuing operations	109,791		32,777			75,016			3,233			(111,026		)	109,791

Income (loss) from discontinued operations, net of tax	317		373			—			(56		)	(317		)	317

Net income	$	110,108	$	33,150		$	75,016		$	3,177		$	(111,343	)	$	110,108

Condensed Consolidating Income Statement

Three Months Ended August 31, 2013

(In thousands)



	Cintas Corporation		Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated

Revenue:
Rental uniforms and ancillary products	$	—	$	605,758		$	162,565		$	54,965		$	(30,422	)	$	792,866
Other services	—		395,193			8,549			20,669			(117,031		)	307,380
Equity in net income of affiliates	77,398		—			—			—			(77,398		)	—
	77,398		1,000,951			171,114			75,634			(224,851		)	1,100,246
Costs and expenses (income):
Cost of rental uniforms and ancillary products	—		383,719			98,167			38,556			(65,711		)	454,731
Cost of other services	—		256,239			(3,123		)	13,220			(76,916		)	189,420
Selling and administrative expenses	—		304,105			(4,859		)	21,442			(4,205		)	316,483
Operating income	77,398		56,888			80,929			2,416			(78,019		)	139,612

Interest income	—		(8		)	(53		)	(14,694		)	14,687			(68		)
Interest expense (income)	—		16,480			44			(1		)	—			16,523

Income before income taxes	77,398		40,416			80,938			17,111			(92,706		)	123,157
Income taxes	—		14,989			29,981			819			(30		)	45,759
Income from continuing operations	77,398		25,427			50,957			16,292			(92,676		)	77,398

Income from discontinued operations, net of tax	356		254			—			102			(356		)	356

Net income	$	77,754	$	25,681		$	50,957		$	16,394		$	(93,032	)	$	77,754

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended August 31, 2014

(In thousands)



	Cintas Corporation		Corp. 2		Subsidiary Guarantors		Non- Guarantors			Eliminations			Cintas Corporation Consolidated

Net income	$	110,108	$	33,150	$	75,016	$	3,177		$	(111,343	)	$	110,108

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	—		—		—		(2,115		)	—			(2,115		)
Change in fair value of derivatives	—		—		—		17			—			17
Amortization of interest rate lock agreements	—		488		—		—			—			488

Other comprehensive income (loss)	—		488		—		(2,098		)	—			(1,610		)

Comprehensive income	$	110,108	$	33,638	$	75,016	$	1,079		$	(111,343	)	$	108,498

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended August 31, 2013

(In thousands)



	Cintas Corporation		Corp. 2		Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated

Net income	$	77,754	$	25,681	$	50,957		$	16,394		$	(93,032	)	$	77,754

Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—		7		—			(653		)	—			(646		)
Amortization of interest rate lock agreements	—		488		—			—			—			488
Change in fair value of available-for-sale securities	—		—		(13		)	(1		)	—			(14		)

Other comprehensive income (loss)	—		495		(13		)	(654		)	—			(172		)

Comprehensive income	$	77,754	$	26,176	$	50,944		$	15,740		$	(93,032	)	$	77,582

Condensed Consolidating Balance Sheet

As of August 31, 2014

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		$	75,744		$	466,645		$	39,064		$	—		$	581,453
Accounts receivable, net	—			352,695			101,722			34,794			—			489,211
Inventories, net	—			217,040			18,315			10,758			3,704			249,817
Uniforms and other rental items in service	—			379,116			114,140			39,259			(18,900		)	513,615
Assets held for sale	—			44,020			39,836			67,407			—			151,263
Prepaid expenses and other current assets	—			5,267			21,040			1,283			—			27,590
Total current assets	—			1,073,882			761,698			192,565			(15,196		)	2,012,949

Property and equipment, at cost, net	—			504,314			254,873			79,306			—			838,493

Investments	321,083			2,082,815			886,466			1,024,343			(3,862,810		)	451,897
Goodwill	—			—			1,172,573			17,507			(112		)	1,189,968
Service contracts, net	—			44,131			47			7			—			44,185
Other assets, net	1,458,826			8,349			2,251,081			8,633			(3,708,111		)	18,778
	$	1,779,909		$	3,713,491		$	5,326,738		$	1,322,361		$	(7,586,229	)	$	4,556,270

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	(465,247	)	$	(606,528	)	$	1,154,807		$	20,742		$	38,021		$	141,795
Accrued compensation and related liabilities	—			28,314			12,385			3,361			—			44,060
Accrued liabilities	—			45,253			238,399			8,896			—			292,548
Income taxes, current	—			5,366			47,065			2,164			—			54,595
Deferred tax liability	—			(508		)	79,514			8,836			—			87,842
Liabilities held for sale	—			1,617			8,093			5,461			—			15,171
Long-term debt due within one year	—			292			(292		)				—			—
Total current liabilities	(465,247		)	(526,194		)	1,539,971			49,460			38,021			636,011

Long-term liabilities:
Long-term debt due after one year	—			1,308,842			(9,242		)	400			—			1,300,000
Deferred income taxes	—			(824		)	246,975			(3,692		)	—			242,459
Accrued liabilities	—			—			104,739			1,087			—			105,826
Total long-term liabilities	—			1,308,018			342,472			(2,205		)	—			1,648,285
Total shareholders’ equity	2,245,156			2,931,667			3,444,295			1,275,106			(7,624,250		)	2,271,974
	$	1,779,909		$	3,713,491		$	5,326,738		$	1,322,361		$	(7,586,229	)	$	4,556,270

Condensed Consolidating Balance Sheet

As of May 31, 2014

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		$	73,540		$	399,525		$	40,223		$	—		$	513,288
Accounts receivable, net	—			366,629			97,869			43,929			—			508,427
Inventories, net	—			215,974			20,745			9,650			4,870			251,239
Uniforms and other rental items in service	—			374,666			112,467			38,240			(18,836		)	506,537
Income taxes, current	—			1,549			(1,549		)	—			—			—
Prepaid expenses and other current assets	—			7,058			14,752			4,380			—			26,190
Total current assets	—			1,039,416			643,809			136,422			(13,966		)	1,805,681

Property and equipment, at cost, net	—			533,665			225,677			96,360			—			855,702

Investments	321,083			2,081,094			893,647			1,015,343			(3,852,810		)	458,357
Goodwill	—			—			1,211,716			55,807			(112		)	1,267,411
Service contracts, net	—			51,248			53			4,374			—			55,675
Other assets, net	1,378,100			8,900			2,189,527			9,044			(3,565,945		)	19,626
	$	1,699,183		$	3,714,323		$	5,164,429		$	1,317,350		$	(7,432,833	)	$	4,462,452

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	(465,247	)	$	(545,526	)	$	1,092,545		$	30,281		$	38,017		$	150,070
Accrued compensation and related liabilities	—			56,581			22,590			5,855			—			85,026
Accrued liabilities	—			79,614			208,983			11,876			(746		)	299,727
Income taxes, current	—			—			4,915			1,045			—			5,960
Deferred tax liability	—			(510		)	80,575			8,780			—			88,845
Long-term debt due within one year	—			773			(270		)	—			—			503
Total current liabilities	(465,247		)	(409,068		)	1,409,338			57,837			37,271			630,131

Long-term liabilities:
Long-term debt due after one year	—			1,309,611			(10,380		)	500			746			1,300,477
Deferred income taxes	—			(6		)	251,924			(5,874		)	—			246,044
Accrued liabilities	—			—			92,069			873			—			92,942
Total long-term liabilities	—			1,309,605			333,613			(4,501		)	746			1,639,463
Total shareholders’ equity	2,164,430			2,813,786			3,421,478			1,264,014			(7,470,850		)	2,192,858
	$	1,699,183		$	3,714,323		$	5,164,429		$	1,317,350		$	(7,432,833	)	$	4,462,452

Condensed Consolidating Statement of Cash Flows

Three Months Ended August 31, 2014

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated

Cash flows from operating activities:
Net income	$	110,108		$	33,150		$	75,016		$	3,177		$	(111,343	)	$	110,108
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation	—			19,547			13,037			2,864			—			35,448
Amortization of intangible assets	—			3,773			15			418			—			4,206
Stock-based compensation	12,280			—			—			—			—			12,280
Gain on deconsolidation of Shredding business	—			(6,619		)	—			—			—			(6,619		)
Gain on sale of stock of an equity method investment	—			—			(21,739		)	—			—			(21,739		)
Deferred income taxes	—			—			2,083			25			—			2,108
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			10,014			(3,852		)	2,060			—			8,222
Inventories, net	—			(1,045		)	2,430			(1,174		)	1,166			1,377
Uniforms and other rental items in service	—			(4,450		)	(1,673		)	(1,053		)	64			(7,112		)
Prepaid expenses	—			200			(6,288		)	204			—			(5,884		)
Accounts payable	—			(70,520		)	71,606			(2,415		)	4			(1,325		)
Accrued compensation and related liabilities	—			(28,267		)	(10,204		)	(2,791		)	—			(41,262		)
Accrued liabilities	—			(31,741		)	42,084			(705		)	746			10,384
Income taxes, current	—			6,913			40,601			495			—			48,009
Net cash provided by (used in) operating activities	122,388			(69,045		)	203,116			1,105			(109,363		)	148,201

Cash flows from investing activities:
Capital expenditures	—			(22,686		)	(42,239		)	(3,125		)	—			(68,050		)
Purchase of marketable securities and investments	—			(1,721		)	(15,260		)	—			10,000			(6,981		)
Proceeds from Shredding transaction	—			3,344			—			—			—			3,344
Proceeds from sale of stock of an equity method investment	—			—			29,933			—			—			29,933
Dividends received on equity method investment	—			—			5,247			—			—			5,247
Acquisitions of businesses, net of cash acquired	—			(2,328		)	—			—			—			(2,328		)
Other, net	(80,725		)	94,602			(114,793		)	823			100,109			16
Net cash (used in) provided by investing activities	(80,725		)	71,211			(137,112		)	(2,302		)	110,109			(38,819		)

Cash flows from financing activities:
Repayment of debt	—			(450		)	1,116			(100		)	(746		)	(180		)
Exercise of stock-based compensation awards	13,623			—			—			—			—			13,623
Repurchase of common stock	(61,439		)	—			—			—			—			(61,439		)
Other, net	6,153			488			—			157			—			6,798
Net cash (used in) provided by financing activities	(41,663		)	38			1,116			57			(746		)	(41,198		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			(19		)	—			(19		)

Net increase (decrease) in cash and cash equivalents	—			2,204			67,120			(1,159		)	—			68,165
Cash and cash equivalents at beginning of period	—			73,540			399,525			40,223			—			513,288
Cash and cash equivalents at end of period	$	—		$	75,744		$	466,645		$	39,064		$	—		$	581,453

Condensed Consolidating Statement of Cash Flows

Three Months Ended August 31, 2013

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated

Cash flows from operating activities:
Net income	$	77,754		$	25,681		$	50,957		$	16,394		$	(93,032	)	$	77,754
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation	—			25,690			13,305			3,576			—			42,571
Amortization of intangible assets	—			5,318			41			464			—			5,823
Stock-based compensation	6,984			—			—			—			—			6,984
Deferred income taxes	—			—			7,735			(362		)	—			7,373
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(9,495		)	(5,449		)	41			—			(14,903		)
Inventories, net	—			(8,071		)	2,675			426			(288		)	(5,258		)
Uniforms and other rental items in service	—			(4,274		)	(842		)	87			879			(4,150		)
Prepaid expenses	—			(81		)	(7,416		)	281			—			(7,216		)
Accounts payable	—			(1,001		)	4,147			(231		)	—			2,915
Accrued compensation and related liabilities	—			(24,197		)	(8,765		)	(1,815		)	—			(34,777		)
Accrued liabilities	—			(13,567		)	(11,060		)	(3,355		)	767			(27,215		)
Income taxes, current	—			5,897			27,252			(491		)	—			32,658
Net cash provided by operating activities	84,738			1,900			72,580			15,015			(91,674		)	82,559

Cash flows from investing activities:
Capital expenditures	—			(25,556		)	(8,804		)	(3,102		)	—			(37,462		)
Proceeds from redemption of marketable securities	—			—			5,659			29,574			—			35,233
Purchase of marketable securities and investments	—			(67		)	(23,946		)	(33,818		)	24,890			(32,941		)
Acquisitions of businesses, net of cash acquired	—			(12,306		)	(1		)	(19,909		)	—			(32,216		)
Other, net	5,309			45,815			(103,631		)	(14,662		)	67,551			382
Net cash provided by (used in) investing activities	5,309			7,886			(130,723		)	(41,917		)	92,441			(67,004		)

Cash flows from financing activities:
Proceeds from issuance of debt	—			—			953			(953		)	—			—
Repayment of debt	—			(416		)	1,016			—			(767		)	(167		)
Exercise of stock-based compensation awards	14,085			—			—			—			—			14,085
Repurchase of common stock	(106,977		)	—			—			—			—			(106,977		)
Other, net	2,845			488			—			793			—			4,126
Net cash (used in) provided by financing activities	(90,047		)	72			1,969			(160		)	(767		)	(88,933		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			(225		)	—			(225		)

Net increase (decrease) in cash and cash equivalents	—			9,858			(56,174		)	(27,287		)	—			(73,603		)
Cash and cash equivalents at beginning of period	—			54,511			247,070			50,692			—			352,273
Cash and cash equivalents at end of period	$	—		$	64,369		$	190,896		$	23,405		$	—		$	278,670