Discontinued Operations

3 Months Ended

Aug. 31, 2017

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

During the three months ended August 31, 2017, Cintas sold a significant business, referred to as Discontinued Services, and received proceeds from the sale of $128.5 million. Cintas has the opportunity to receive additional consideration in the future, subject to certain holdback provisions. Because of the uncertainty surrounding the holdback provisions, this amount represents a gain contingency that has not been recorded. The results of Discontinued Services are included in discontinued operations for all periods presented. In accordance with the applicable accounting guidance for the disposal of long-lived assets and discontinued operations, the results of Discontinued Services have been excluded from both continuing operations and operating segment results for all periods presented.

Following is selected financial information included in net income from discontinued operations for Discontinued Services:

	Three Months Ended
(In thousands)	August 31, 2017			August 31, 2016(1)
Revenue	$	10,773		$	27,481
(Loss) income before income taxes	(2,439		)	3,024
Income tax benefit (expense)	902			(1,141		)
Gain on sale of business	100,269			—
Income tax expense on gain	(42,629		)	—
Net income from discontinued operations	$	56,103		$	1,883

⁽¹⁾ Results for the three months ended August 31, 2016 were previously included in continuing operations.