Operating Segment Information

12 Months Ended

May 31, 2016

Segment Reporting [Abstract]

Operating Segment Information

Operating Segment Information

GAAP requires companies to evaluate their reportable operating segments periodically and when certain events occur. As a result of a periodic evaluation, effective June 1, 2015, Cintas realigned its organizational structure and updated its reportable operating segments in light of certain changes in its business including the acquisition of ZEE in the first quarter of fiscal 2016. Cintas’ updated reportable operating segments are Uniform Rental and Facility Services and First Aid and Safety Services. The Uniform Rental and Facility Services reportable operating segment consists of the rental and servicing of uniforms and other garments including flame resistant clothing, mats, mops and shop towels and other ancillary items. In addition to these rental items, restroom cleaning services and supplies, carpet and tile cleaning services and the sale of items from our catalogs to our customers on route are included within this reportable operating segment. The First Aid and Safety Services reportable operating segment consists of first aid and safety products and services. The remainder of Cintas’ business, which consists primarily of Fire Protection Services and its Direct Sale business, is included in All Other. All prior fiscal year results presented in the table below have been recast to reflect these new operating segments.

Prior to June 1, 2015, Cintas classified its businesses into three operating segments based on the types of products and services provided. The Rental Uniforms and Ancillary Products operating segment consisted of the rental and servicing of uniforms and other garments including flame resistant clothing, mats, mops and shop towels and other ancillary items.  In addition to these rental items, restroom cleaning services and supplies and carpet and tile cleaning services were also provided within this operating segment. The Uniform Direct Sales operating segment consisted of the direct sale of uniforms and related items. The First Aid, Safety and Fire Protection Services operating segment consisted of first aid, safety and fire protection products and services.

Cintas evaluates the performance of each operating segment based on several factors of which the primary financial measures are operating segment revenue and income before income taxes. The accounting policies of the operating segments are the same as those described in Note 1 entitled Significant Accounting Policies. Information related to the operations of Cintas' operating segments is set forth below:

(In thousands)	Uniform Rental and Facility Services		First Aid and Safety Services		All Other		Corporate(1)			Total
May 31, 2016
Revenue	$	3,777,801	$	461,783	$	665,874	$	—		$	4,905,458
Gross margin	$	1,671,008	$	197,010	$	261,852	$	—		$	2,129,870
Selling and administrative expenses	998,069		147,503		202,550		—			1,348,122
Interest expense, net	—		—		—		63,626			63,626
Income before income taxes	$	672,939	$	49,507	$	59,302	$	(63,626	)	$	718,122
Depreciation and amortization	$	130,822	$	16,021	$	18,436	$	—		$	165,279
Capital expenditures	$	237,884	$	22,364	$	15,137	$	—		$	275,385
Total assets	$	3,114,159	$	421,789	$	358,683	$	209,762		$	4,104,393
May 31, 2015
Revenue	$	3,539,843	$	326,593	$	610,450	$	—		$	4,476,886
Gross margin	$	1,532,211	$	152,339	$	236,787	$	—		$	1,921,337
Selling and administrative expenses	926,176		107,226		191,528		—			1,224,930
Gain on sale of stock of an equity    method investment	—		—		—		21,739			21,739
Interest expense, net	—		—		—		64,822			64,822
Income before income taxes	$	606,035	$	45,113	$	45,259	$	(43,083	)	$	653,324
Depreciation and amortization	$	123,577	$	9,774	$	19,244	$	—		$	152,595
Capital expenditures	$	184,246	$	13,589	$	18,983	$	902		$	217,720
Total assets	$	2,845,326	$	255,202	$	345,201	$	746,731		$	4,192,460
May 31, 2014
Revenue	$	3,304,635	$	294,966	$	594,243	$	—		$	4,193,844
Gross margin	$	1,382,158	$	136,136	$	231,465	$	—		$	1,749,759
Selling and administrative expenses	860,311		96,246		190,482		—			1,147,039
Interest expense, net	—		—		—		65,593			65,593
Income before income taxes	$	521,847	$	39,890	$	40,983	$	(65,593	)	$	537,127
Depreciation and amortization	$	118,828	$	8,283	$	20,178	$	—		$	147,289
Capital expenditures	$	94,619	$	9,195	$	7,370	$	34,396		$	145,580
Total assets	$	2,840,809	$	257,603	$	340,650	$	1,023,390		$	4,462,452

⁽¹⁾ Corporate assets include cash and marketable securities in all periods. Corporate assets as of May 31, 2015 include Shred-it and real estate assets of Storage that were not included in the sale transactions. Corporate assets as of May 31, 2014 include Shred-it and the assets of Storage.