Operating Segment Information

U.S. GAAP requires companies to evaluate their reportable operating segments periodically and when certain events occur. As a result of our 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, which includes G&K, 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 of Fire Protection Services and its Uniform Direct Sale business, is included in All Other.

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, 2017
Revenue	$	4,202,490	$	508,233	$	612,658	$	—		$	5,323,381
Gross margin	$	1,894,716	$	230,166	$	255,413	$	—		$	2,380,295
Selling and administrative expenses	1,138,345		177,378		211,657		—			1,527,380
G&K Services, Inc. transaction and integration expenses	79,224									79,224
Interest expense, net	—		—		—		86,287			86,287
Income before income taxes	$	677,147	$	52,788	$	43,756	$	(86,287	)	$	687,404
Depreciation and amortization	$	156,998	$	19,962	$	17,905	$	1,730		$	196,595
Capital expenditures	$	232,832	$	26,863	$	12,645	$	977		$	273,317
Total assets	$	5,801,680	$	444,717	$	367,562	$	230,098		$	6,844,057

May 31, 2016
Revenue	$	3,759,524	$	461,783	$	574,465	$	—		$	4,795,772
Gross margin	$	1,666,691	$	197,010	$	237,639	$	—		$	2,101,340
Selling and administrative expenses	994,590		147,503		190,306		—			1,332,399
Interest expense, net	—		—		—		63,626			63,626
Income before income taxes	$	672,101	$	49,507	$	47,333	$	(63,626	)	$	705,315
Depreciation and amortization	$	130,421	$	16,021	$	16,879	$	1,958		$	165,279
Capital expenditures	$	237,871	$	22,364	$	14,840	$	310		$	275,385
Total assets	$	3,104,822	$	421,697	$	322,474	$	249,822		$	4,098,815

May 31, 2015
Revenue	$	3,519,199	$	326,593	$	523,885	$	—		$	4,369,677
Gross margin	$	1,526,534	$	152,339	$	214,050	$	—		$	1,892,923
Selling and administrative expenses	922,582		107,226		179,476		—			1,209,284
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	$	603,952	$	45,113	$	34,574	$	(43,083	)	$	640,556
Depreciation and amortization	$	123,129	$	9,774	$	16,909	$	2,783		$	152,595
Capital expenditures	$	184,200	$	13,589	$	18,528	$	1,403		$	217,720
Total assets	$	2,831,978	$	254,707	$	299,885	$	799,104		$	4,185,674

⁽¹⁾ Corporate assets include cash and marketable securities in all periods presented. Corporate assets as of May 31, 2017 and 2016 also include the assets of Discontinued Services. Corporate assets as of May 31, 2015 also include assets of Discontinued Services, Shred-it and real estate assets of Storage that were not included in the sale transactions. Corporate depreciation and amortization includes depreciation and amortization of Discontinued Services.