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 $66.0 million aggregate principal amount of commercial paper and the $1,050.0 million aggregate principal amount of senior notes, which are unconditionally guaranteed, jointly and severally, by Cintas Corporation and certain 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. During fiscal 2017, the Company merged a legal entity previously included in subsidiary guarantors into Corp. 2. This restructuring has been reflected as of the beginning of the earliest period presented herein.

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, 2016

(In thousands)



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

Revenue:
Uniform rental and facility services	$	—	$	841,442	$	149,886		$	57,610		$	(43,373	)	$	1,005,565
Other	—		411,378		633			18,162			(138,815		)	291,358
Equity in net income of affiliates	140,377		—		—			—			(140,377		)	—
	140,377		1,252,820		150,519			75,772			(322,565		)	1,296,923
Costs and expenses (income):
Cost of uniform rental and facility services	—		487,653		94,323			37,603			(63,827		)	555,752
Cost of other	—		287,368		(19,549		)	13,636			(111,711		)	169,744
Selling and administrative expenses	—		401,715		(48,256		)	18,703			(6,940		)	365,222
G&K Services, Inc. transaction expenses	—		—		3,347			—			—			3,347
Operating income	140,377		76,084		120,654			5,830			(140,087		)	202,858

Interest income	—		—		(7		)	(25		)	1			(31		)
Interest expense (income)	—		14,528		(1,176		)	(85		)	—			13,267

Income before income taxes	140,377		61,556		121,837			5,940			(140,088		)	189,622
Income taxes	—		21,534		42,652			2,011			(29		)	66,168
Income from continuing operations	140,377		40,022		79,185			3,929			(140,059		)	123,454

Income from discontinued operations, net of tax	—		14,982		—			1,941			—			16,923

Net income from continuing operations	$	140,377	$	55,004	$	79,185		$	5,870		$	(140,059	)	$	140,377

Condensed Consolidating Income Statement

Three Months Ended November 30, 2015

(In thousands)



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

Revenue:
Uniform rental and facility services	$	—	$	786,386		$	136,707		$	53,674		$	(39,063	)	$	937,704
Other	—		394,260			737			17,516			(131,137		)	281,376
Equity in net income of affiliates	115,453		—			—			—			(115,453		)	—
	115,453		1,180,646			137,444			71,190			(285,653		)	1,219,080
Costs and expenses (income):
Cost of uniform rental and facility services	—		461,843			86,702			35,935			(58,389		)	526,091
Cost of other	—		277,841			(18,291		)	12,317			(106,278		)	165,589
Selling and administrative expenses	—		365,125			(49,482		)	16,140			(4,732		)	327,051
Operating income	115,453		75,837			118,515			6,798			(116,254		)	200,349

Interest income	—		(12		)	(68		)	(31		)	—			(111		)
Interest expense (income)	—		16,427			(256		)	—			—			16,171

Income before income taxes	115,453		59,422			118,839			6,829			(116,254		)	184,289
Income taxes	—		20,496			42,108			6,260			(28		)	68,836
Income from continuing operations	115,453		38,926			76,731			569			(116,226		)	115,453

Income (loss) from discontinued operations, net of tax	229,647		234,604			—			(4,957		)	(229,647		)	229,647

Net income (loss)	$	345,100	$	273,530		$	76,731		$	(4,388	)	$	(345,873	)	$	345,100

Condensed Consolidating Income Statement

Six Months Ended November 30, 2016

(In thousands)



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

Revenue:
Uniform rental and facility services	$	—	$	1,678,716	$	299,034		$	115,273		$	(87,862	)	$	2,005,161
Other	—		821,626		1,601			37,037			(274,372		)	585,892
Equity in net income of affiliates	278,468		—		—			—			(278,468		)	—
	278,468		2,500,342		300,635			152,310			(640,702		)	2,591,053
Costs and expenses (income):
Cost of uniform rental and facility services	—		966,709		184,995			74,717			(129,737		)	1,096,684
Cost of other	—		567,392		(34,480		)	27,464			(221,208		)	339,168
Selling and administrative expenses	—		813,649		(98,990		)	38,968			(14,379		)	739,248
G&K Services Inc. transaction expenses	—		—		6,134			—			—			6,134
Operating income	278,468		152,592		242,976			11,161			(275,378		)	409,819

Interest income	—		—		(24		)	(73		)	1			(96		)
Interest expense (income)	—		29,355		(1,878		)	(38		)	—			27,439

Income before income taxes	278,468		123,237		244,878			11,272			(275,379		)	382,476
Income taxes	—		39,344		78,178			3,464			(55		)	120,931
Income from continuing operations	278,468		83,893		166,700			7,808			(275,324		)	261,545

Income from discontinued operations, net of tax	—		14,982		—			1,941			—			16,923

Net income	$	278,468	$	98,875	$	166,700		$	9,749		$	(275,324	)	$	278,468

Condensed Consolidating Income Statement

Six Months Ended November 30, 2015

(In thousands)



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

Revenue:
Uniform rental and facility services	$	—	$	1,573,555		$	273,132		$	107,686		$	(78,261	)	$	1,876,112
Other	—		766,871			2,030			32,327			(259,370		)	541,858
Equity in net income of affiliates	221,651		—			—			—			(221,651		)	—
	221,651		2,340,426			275,162			140,013			(559,282		)	2,417,970
Costs and expenses (income):
Cost of uniform rental and facility services	—		917,050			172,900			71,755			(117,111		)	1,044,594
Cost of other	—		536,831			(32,547		)	23,423			(205,875		)	321,832
Selling and administrative expenses	—		734,818			(90,954		)	34,020			(12,196		)	665,688
Operating income	221,651		151,727			225,763			10,815			(224,100		)	385,856

Interest income	—		(12		)	(116		)	(102		)	—			(230		)
Interest expense (income)	—		32,802			(218		)	(1		)	—			32,583

Income before income taxes	221,651		118,937			226,097			10,918			(224,100		)	353,503
Income taxes	—		42,878			81,511			7,516			(53		)	131,852
Income from continuing operations	221,651		76,059			144,586			3,402			(224,047		)	221,651

Income (loss) from discontinued operations, net of tax	223,630		229,281			—			(5,651		)	(223,630		)	223,630

Net income (loss)	$	445,281	$	305,340		$	144,586		$	(2,249	)	$	(447,677	)	$	445,281

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended November 30, 2016

(In thousands)



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

Net income	$	140,377		$	55,004	$	79,185	$	5,870		$	(140,059	)	$	140,377

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(7,650		)	—		—		(7,650		)	7,650			(7,650		)
Change in fair value of derivatives	26,390			26,390		—		—			(26,390		)	26,390
Amortization of interest rate lock agreements	385			385		—		—			(385		)	385
Change in fair value of available-for-sale securities	1			—		—		1			(1		)	1

Other comprehensive income (loss)	19,126			26,775		—		(7,649		)	(19,126		)	19,126

Comprehensive income (loss)	$	159,503		$	81,779	$	79,185	$	(1,779	)	$	(159,185	)	$	159,503

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended November 30, 2015

(In thousands)



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

Net income (loss)	$	345,100	$	273,530	$	76,731	$	(4,388	)	$	(345,873	)	$	345,100

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	—		—		—		(4,626		)	—			(4,626		)
Cumulative translation adjustment on Shred-it	—		5,875		—		597			—			6,472
Amortization of interest rate lock agreements	—		488		—		—			—			488
Change in fair value of available-for-sale securities	—		—		—		(10		)	—			(10		)

Other comprehensive income (loss)	—		6,363		—		(4,039		)	—			2,324

Comprehensive income (loss)	$	345,100	$	279,893	$	76,731	$	(8,427	)	$	(345,873	)	$	347,424

Condensed Consolidating Statement of Comprehensive Income

Six Months Ended November 30, 2016

(In thousands)



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

Net income	$	278,468		$	98,875	$	166,700	$	9,749		$	(275,324	)	$	278,468

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(7,535		)	—		—		(7,535		)	7,535			(7,535		)
Change in fair value of derivatives	14,353			14,353		—		—			(14,353		)	14,353
Amortization of interest rate lock agreements	770			770		—		—			(770		)	770

Other comprehensive income (loss)	7,588			15,123		—		(7,535		)	(7,588		)	7,588

Comprehensive income	$	286,056		$	113,998	$	166,700	$	2,214		$	(282,912	)	$	286,056

Condensed Consolidating Statement of Comprehensive Income

Six Months Ended November 30, 2015

(In thousands)



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

Net income (loss)	$	445,281	$	305,340	$	144,586	$	(2,249	)	$	(447,677	)	$	445,281

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	—		—		—		(16,639		)	—			(16,639		)
Cumulative translation adjustment on Shred-it	—		5,875		—		597			—			6,472
Amortization of interest rate lock agreements	—		976		—		—			—			976
Change in fair value of available-for-sale securities	—		—		—		(18		)	—			(18		)

Other comprehensive income (loss)	—		6,851		—		(16,060		)	—			(9,209		)

Comprehensive income (loss)	$	445,281	$	312,191	$	144,586	$	(18,309	)	$	(447,677	)	$	436,072

Condensed Consolidating Balance Sheet

As of November 30, 2016

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors		Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		$	46,561		$	2,425	$	94,587		$	—		$	143,573
Accounts receivable, net	—			467,396			104,330		35,726			—			607,452
Inventories, net	—			236,904			16,280		12,106			(1,989		)	263,301
Uniforms and other rental items in service	—			449,311			77,183		35,474			(18,324		)	543,644
Income taxes, current	—			—			1,233		(5		)	—			1,228
Prepaid expenses and other current assets	—			19,907			20,692		865			—			41,464
Total current assets	—			1,220,079			222,143		178,753			(20,313		)	1,600,662

Property and equipment, at cost, net	—			647,509			344,036		75,669			—			1,067,214

Investments	321,083			1,774,863			916,723		955,196			(3,827,335		)	140,530
Goodwill	—			—			1,261,755		39,748			(112		)	1,301,391
Service contracts, net	—			79,583			5		5,929			—			85,517
Other assets, net	1,381,960			4,209			3,402,717		8,949			(4,778,570		)	19,265
	$	1,703,043		$	3,726,243		$	6,147,379	$	1,264,244		$	(8,626,330	)	$	4,214,579

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	(465,247	)	$	(1,759,953	)	$	2,297,808	$	17,092		$	38,115		$	127,815
Accrued compensation and related liabilities	2,819			60,811			16,936		5,291			—			85,857
Accrued liabilities	139,766			80,290			234,689		14,340			—			469,085
Debt due within one year	—			66,000			—		—			—			66,000
Total current liabilities	(322,662		)	(1,552,852		)	2,549,433		36,723			38,115			748,757

Long-term liabilities:
Debt due after one year	—			1,044,444			—		390			—			1,044,834
Deferred income taxes	—			(416		)	257,554		7,953			—			265,091
Accrued liabilities	—			—			129,042		1,150			—			130,192
Total long-term liabilities	—			1,044,028			386,596		9,493			—			1,440,117

Total shareholders’ equity	2,025,705			4,235,067			3,211,350		1,218,028			(8,664,445		)	2,025,705
	$	1,703,043		$	3,726,243		$	6,147,379	$	1,264,244		$	(8,626,330	)	$	4,214,579

Condensed Consolidating Balance Sheet

As of May 31, 2016

(In thousands)



	Cintas Corporation			Corp. 2			Subsidiary Guarantors		Non- Guarantors		Eliminations			Cintas Corporation Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		$	57,893		$	55,392	$	26,072	$	—		$	139,357
Marketable securities	—			—			—		70,405		—			70,405
Accounts receivable, net	—			430,335			97,516		35,327		—			563,178
Inventories, net	—			222,823			19,149		11,235		(3,845		)	249,362
Uniforms and other rental items in service	—			450,065			73,001		36,612		(19,722		)	539,956
Income taxes, current	—			(1,634		)	2,698		648		—			1,712
Prepaid expenses and other current assets	—			6,824			18,279		962		—			26,065
Total current assets	—			1,166,306			266,035		181,261		(23,567		)	1,590,035

Property and equipment, at cost, net	—			614,656			305,636		73,945		—			994,237

Investments	321,083			1,770,303			901,772		941,396		(3,809,602		)	124,952
Goodwill	—			—			1,256,662		35,043		(112		)	1,291,593
Service contracts, net	—			81,462			13		2,240		—			83,715
Other assets, net	1,081,203			(913		)	3,526,051		9,110		(4,601,168		)	14,283
	$	1,402,286		$	3,631,814		$	6,256,169	$	1,242,995	$	(8,434,449	)	$	4,098,815

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	(465,247	)	$	(1,773,815	)	$	2,298,790	$	16,781	$	38,005		$	114,514
Accrued compensation and related liabilities	—			73,545			23,051		5,380		—			101,976
Accrued liabilities	—			84,270			251,217		13,578		—			349,065
Debt due within one year	—			250,000			—		—		—			250,000
Total current liabilities	(465,247		)	(1,366,000		)	2,573,058		35,739		38,005			815,555

Long-term liabilities:
Debt due after one year	—			1,044,032			—		390		—			1,044,422
Deferred income taxes	—			(427		)	252,149		7,753		—			259,475
Accrued liabilities	—			19,628			116,091		985		—			136,704
Total long-term liabilities	—			1,063,233			368,240		9,128		—			1,440,601

Total shareholders’ equity	1,867,533			3,934,581			3,314,871		1,198,128		(8,472,454		)	1,842,659
	$	1,402,286		$	3,631,814		$	6,256,169	$	1,242,995	$	(8,434,449	)	$	4,098,815

Condensed Consolidating Statement of Cash Flows

Six Months Ended November 30, 2016

(In thousands)



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

Cash flows from operating activities:
Net income	$	278,468		$	98,875		$	166,700		$	9,749		$	(275,324	)	$	278,468
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation	—			52,259			22,412			4,919			—			79,590
Amortization of intangible assets	—			6,847			175			438			—			7,460
Stock-based compensation	39,582			—			—			—			—			39,582
Gain on Shred-it	—			(23,935		)	—			(1,941		)	—			(25,876		)
Deferred income taxes	—			(9,578		)	5,395			350			—			(3,833		)
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(36,939		)	(6,813		)	(1,168		)	—			(44,920		)
Inventories, net	—			(14,038		)	2,871			(1,593		)	(1,856		)	(14,616		)
Uniforms and other rental items in service	—			754			(4,182		)	511			(1,398		)	(4,315		)
Prepaid expenses and other current assets	—			412			(2,411		)	47			—			(1,952		)
Accounts payable	—			23,367			(10,857		)	2,831			110			15,451
Accrued compensation and related liabilities	2,819			(12,734		)	(8,935		)	(86		)	—			(18,936		)
Accrued liabilities and other	139,766			3,711			(148,384		)	41			—			(4,866		)
Income taxes, current	—			(1,635		)	1,460			659			—			484
Net cash provided by operating activities	460,635			87,366			17,431			14,757			(278,468		)	301,721

Cash flows from investing activities:
Capital expenditures	—			(85,207		)	(60,837		)	(9,129		)	—			(155,173		)
Proceeds from redemption of marketable securities	—			—			—			172,968			—			172,968
Purchase of marketable securities and investments	—			(4,560		)	(28,751		)	(102,692		)	17,733			(118,270		)
Proceeds from sale of investment in Shred-it	—			23,935			—			1,941			—			25,876
Acquisitions of businesses, net of cash acquired	—			(7,245		)	—			(10,533		)	—			(17,778		)
Other, net	(460,630		)	177,446			21,190			1,591			260,735			332
Net cash (used in) provided by investing activities	(460,630		)	104,369			(68,398		)	54,146			278,468			(92,045		)

Cash flows from financing activities:
Proceeds from issuance of commercial paper, net	—			66,000			—			—			—			66,000
Proceeds from issuance of debt	—			—			(2,000		)	2,000			—			—
Repayment of debt	—			(250,000		)	—			—			—			(250,000		)
Prepaid short-term debt financing fees	—			(13,495		)	—			—			—			(13,495		)
Proceeds from exercise of stock-based compensation awards	19,225			—			—			—			—			19,225
Repurchase of common stock	(19,230		)	—			—			—			—			(19,230		)
Other, net	—			(5,572		)	—			—			—			(5,572		)
Net cash (used in) provided by financing activities	(5		)	(203,067		)	(2,000		)	2,000			—			(203,072		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			(2,388		)	—			(2,388		)

Net (decrease) increase in cash and cash equivalents	—			(11,332		)	(52,967		)	68,515			—			4,216
Cash and cash equivalents at beginning of period	—			57,893			55,392			26,072			—			139,357
Cash and cash equivalents at end of period	$	—		$	46,561		$	2,425		$	94,587		$	—		$	143,573

Condensed Consolidating Statement of Cash Flows

Six Months Ended November 30, 2015

(In thousands)



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

Cash flows from operating activities:
Net income (loss)	$	445,281		$	305,340		$	144,586		$	(2,249	)	$	(447,677	)	$	445,281
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation	—			46,231			22,231			4,668			—			73,130
Amortization of intangible assets	—			7,248			337			179			—			7,764
Stock-based compensation	40,241			—			—			—			—			40,241
Gain on Storage transactions	—			(12,547		)	—			(3,239		)	—			(15,786		)
(Gain) loss on Shred-it	—			(362,237		)	—			12,499			—			(349,738		)
Deferred income taxes	—			(93,097		)	(6,913		)	1,587			—			(98,423		)
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(24,824		)	(13,014		)	(1,580		)	—			(39,418		)
Inventories, net	—			(20,021		)	(2,049		)	(365		)	2,594			(19,841		)
Uniforms and other rental items in service	—			(6,851		)	(2,319		)	(1,530		)	(193		)	(10,893		)
Prepaid expenses and other current assets	—			128			(2,534		)	37			—			(2,369		)
Accounts payable	—			(388,996		)	403,502			4,872			(10		)	19,368
Accrued compensation and related liabilities	—			(18,569		)	(3,520		)	(682		)	—			(22,771		)
Accrued liabilities and other	—			685			976			(1,344		)	724			1,041
Income taxes, current	—			231,042			6,309			100			—			237,451
Net cash provided by (used in) operating activities	485,522			(336,468		)	547,592			12,953			(444,562		)	265,037

Cash flows from investing activities:
Capital expenditures	—			(67,463		)	(47,537		)	(6,817		)	—			(121,817		)
Proceeds from redemption of marketable securities	—			—			—			212,081			—			212,081
Purchase of marketable securities and investments	—			(3,437		)	(7,549		)	(264,365		)	4,010			(271,341		)
Proceeds from Storage transactions, net of cash acquired	—			32,099			—			3,239			—			35,338
Proceeds from sale of Shred-it	—			565,643			—			12,614			—			578,257
Acquisitions of businesses, net of cash acquired	—			(96,465		)	—			(24,772		)	—			(121,237		)
Other, net	(100,673		)	(60,133		)	(278,564		)	81			441,276			1,987
Net cash (used in) provided by investing activities	(100,673		)	370,244			(333,650		)	(67,939		)	445,286			313,268

Cash flows from financing activities:
Proceeds from issuance of debt	—			—			(55		)	55			—			—
Repayment of debt	—			(309		)	1,053			(36		)	(724		)	(16		)
Exercise of stock-based compensation awards	17,444			—			—			—			—			17,444
Repurchase of common stock	(402,293		)	—			—			—			—			(402,293		)
Other, net	—			976			—			(330		)	—			646
Net cash (used in) provided by financing activities	(384,849		)	667			998			(311		)	(724		)	(384,219		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			(4,374		)	—			(4,374		)

Net increase (decrease) in cash and cash equivalents	—			34,443			214,940			(59,671		)	—			189,712
Cash and cash equivalents at beginning of period	—			74,632			248,716			93,725			—			417,073
Cash and cash equivalents at end of period	$	—		$	109,075		$	463,656		$	34,054		$	—		$	606,785