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Supplemental Guarantor Information
 12 Months Ended
May 31, 2019
Condensed Financial Information Disclosure [Abstract]  
Supplemental Guarantor Information
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 $112.5 million aggregate principal amount of commercial paper, term loan of $200.0 million and the $2,550.0 million aggregate principal amount of senior notes outstanding as of May 31, 2019, which are unconditionally guaranteed, jointly and severally, by Cintas Corporation and its wholly-owned, direct and indirect domestic subsidiaries.
As allowed by Securities and Exchange Commission 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
Year Ended May 31, 2019
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 Uniform rental and facility
    services
$
—

 
$
4,506,235

 
$
728,463

 
$
404,226

 
$
(86,494
)
 
$
5,552,430

 Other
—

 
2,125,827

 
190

 
96,545

 
(882,689
)
 
1,339,873

 Equity in net income of
   affiliates
882,635

 
—

 
—

 
—

 
(882,635
)
 
—

 Total revenue
882,635

 
6,632,062

 
728,653

 
500,771

 
(1,851,818
)
 
6,892,303

 
 
 
 
 
 
 
 
 
 
 
 
Costs and expenses (income):
 
 
 
 
 
 
 
 
 
 
 
Cost of uniform rental and
   facility services
—

 
2,518,588

 
445,116

 
260,366

 
(196,471
)
 
3,027,599

Cost of other
—

 
1,479,797

 
(66,349
)
 
72,066

 
(749,398
)
 
736,116

Selling and administrative
   expenses
—

 
2,233,197

 
(343,532
)
 
125,864

 
(34,885
)
 
1,980,644

G&K Services, Inc. integration
   expenses
—

 
8,709

 
3,559

 
2,142

 
—

 
14,410

Operating income
882,635

 
391,771

 
689,859

 
40,333

 
(871,064
)
 
1,133,534

 
 
 
 
 
 
 
 
 
 
 
 
Gain on sale of a cost method investment
—

 
—

 
69,373

 
—

 
—

 
69,373

 
 
 
 
 
 
 
 
 
 
 
 
Interest income
—

 
(812
)
 
(371
)
 
(52
)
 
7

 
(1,228
)
Interest expense (income)
—

 
102,466

 
(745
)
 
15

 
—

 
101,736

 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
882,635

 
290,117

 
760,348

 
40,370

 
(871,071
)
 
1,102,399

Income tax expense
—

 
58,378

 
151,861

 
9,630

 
(105
)
 
219,764

Income from continuing
    operations
882,635

 
231,739

 
608,487

 
30,740

 
(870,966
)
 
882,635

Income from discontinued
    operations, net of tax
2,346

 
2,346

 
—

 
—

 
(2,346
)
 
2,346

Net income
$
884,981

 
$
234,085

 
$
608,487

 
$
30,740

 
$
(873,312
)
 
$
884,981


Condensed Consolidating Income Statement

Year Ended May 31, 2018
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Uniform rental and facility
   services
$
—

 
$
4,361,716

 
$
681,846

 
$
400,792

 
$
(197,230
)
 
$
5,247,124

Other
—

 
1,778,845

 
112

 
88,092

 
(637,541
)
 
1,229,508

Equity in net income of
   affiliates
783,932

 
—

 
—

 
—

 
(783,932
)
 
—

Total revenue
783,932

 
6,140,561

 
681,958

 
488,884

 
(1,618,703
)
 
6,476,632

 
 
 
 
 
 
 
 
 
 
 
 
Costs and expenses (income):
 
 
 
 
 
 
 
 
 
 
 
Cost of uniform rental and
   facility services
—

 
2,511,854

 
418,722

 
254,718

 
(298,335
)
 
2,886,959

Cost of other
—

 
1,183,036

 
(57,220
)
 
62,368

 
(507,034
)
 
681,150

Selling and administrative
   expenses
—

 
2,093,655

 
(271,222
)
 
125,545

 
(31,186
)
 
1,916,792

G&K Services, Inc. transaction
    and integration expenses
—

 
15,383

 
22,148

 
4,366

 
—

 
41,897

Operating income
783,932

 
336,633

 
569,530

 
41,887

 
(782,148
)
 
949,834

 
 
 
 
 
 
 
 
 
 
 
 
Interest income
—

 
(310
)
 
(242
)
 
(793
)
 
3

 
(1,342
)
Interest expense (income)
—

 
111,292

 
(1,017
)
 
(100
)
 
—

 
110,175

 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
783,932

 
225,651

 
570,789

 
42,780

 
(782,151
)
 
841,001

Income tax (benefit) expense
—

 
(48,907
)
 
90,886

 
15,212

 
(122
)
 
57,069

Income from continuing
   operations
783,932

 
274,558

 
479,903

 
27,568

 
(782,029
)
 
783,932

Income (loss) from discontinued
    operations, net of tax
58,654

 
68,293

 
(9,688
)
 
—

 
(58,605
)
 
58,654

Net income
$
842,586

 
$
342,851

 
$
470,215

 
$
27,568

 
$
(840,634
)
 
$
842,586

Condensed Consolidating Income Statement

Year Ended May 31, 2017
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Uniform rental and facility
   services
$
—

 
$
3,511,483

 
$
604,679

 
$
257,288

 
$
(170,960
)
 
$
4,202,490

Other
—

 
1,604,877

 
1,810

 
73,006

 
(558,802
)
 
1,120,891

Equity in net income of
   affiliates
457,286

 
—

 
—

 
—

 
(457,286
)
 
—

Total revenue
457,286

 
5,116,360

 
606,489

 
330,294

 
(1,187,048
)
 
5,323,381

 
 
 
 
 
 
 
 
 
 
 
 
Costs and expenses (income):
 
 
 
 
 
 
 
 
 
 
 
Cost of uniform rental and
   facility services
—

 
2,021,365

 
378,404

 
164,969

 
(256,964
)
 
2,307,774

Cost of other
—

 
1,070,780

 
(41,509
)
 
56,210

 
(450,169
)
 
635,312

Selling and administrative
   expenses
—

 
1,686,209

 
(220,887
)
 
87,672

 
(25,614
)
 
1,527,380

G&K Services, Inc. transaction
   and integration expenses
—

 
51,868

 
19,060

 
8,296

 
—

 
79,224

Operating income
457,286

 
286,138

 
471,421

 
13,147

 
(454,301
)
 
773,691

 
 
 
 
 
 
 
 
 
 
 
 
Interest income
—

 
(26
)
 
(191
)
 
(22
)
 
2

 
(237
)
Interest expense (income)
—

 
89,706

 
(2,978
)
 
(204
)
 
—

 
86,524

 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
457,286

 
196,458

 
474,590

 
13,373

 
(454,303
)
 
687,404

Income tax expense
—

 
65,829

 
159,025

 
5,365

 
(101
)
 
230,118

Income from continuing
    operations
457,286

 
130,629

 
315,565

 
8,008

 
(454,202
)
 
457,286

Income from discontinued
    operations, net of tax
23,422

 
22,287

 
—

 
1,135

 
(23,422
)
 
23,422

Net income
$
480,708

 
$
152,916

 
$
315,565

 
$
9,143

 
$
(477,624
)
 
$
480,708


Condensed Consolidating Statement of Comprehensive Income

Year Ended May 31, 2019
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
884,981

 
$
234,085

 
$
608,487

 
$
30,740

 
$
(873,312
)
 
$
884,981

 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss)
   income, net of tax:
 
 
 
 
 
 
 
 
 
 

Foreign currency translation
    adjustments
(21,572
)
 
—

 
—

 
(21,572
)
 
21,572

 
(21,572
)
Change in fair value of interest
   rate lock agreements
(27,659
)
 
(27,659
)
 
—

 
—

 
27,659

 
(27,659
)
Amortization of interest rate
    lock agreements
(1,179
)
 
(1,179
)
 
—

 
—

 
1,179

 
(1,179
)
Other
(5,085
)
 
(4,489
)
 
(596
)
 
—

 
5,085

 
(5,085
)
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive loss
(55,495
)
 
(33,327
)
 
(596
)
 
(21,572
)
 
55,495

 
(55,495
)
 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income
$
829,486

 
$
200,758

 
$
607,891

 
$
9,168

 
$
(817,817
)
 
$
829,486

Condensed Consolidating Statement of Comprehensive Income

Year Ended May 31, 2018
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
842,586

 
$
342,851

 
$
470,215

 
$
27,568

 
$
(840,634
)
 
$
842,586

 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income
   (loss), net of tax:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation
    adjustments
19,276

 
—

 
—

 
19,276

 
(19,276
)
 
19,276

Amortization of interest rate
    lock agreements
(933
)
 
(933
)
 
—

 
—

 
933

 
(933
)
Other
1,029

 
267

 
762

 
—

 
(1,029
)
 
1,029

 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
19,372

 
(666
)
 
762

 
19,276

 
(19,372
)
 
19,372

 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income
$
861,958

 
$
342,185

 
$
470,977

 
$
46,844

 
$
(860,006
)
 
$
861,958

Condensed Consolidating Statement of Comprehensive Income

Year Ended May 31, 2017
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
480,708

 
$
152,916

 
$
315,565

 
$
9,143

 
$
(477,624
)
 
$
480,708

 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss)
   income, net of tax:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation
    adjustments
(10,252
)
 
—

 
—

 
(10,252
)
 
10,252

 
(10,252
)
Change in fair value of cash
    flow hedges
31,136

 
31,136

 
—

 
—

 
(31,136
)
 
31,136

Amortization of interest rate
    lock agreements
1,076

 
1,076

 
—

 
—

 
(1,076
)
 
1,076

 Other
(115
)
 
—

 
(115
)
 
—

 
115

 
(115
)
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
21,845

 
32,212

 
(115
)
 
(10,252
)
 
(21,845
)
 
21,845

 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss)
$
502,553

 
$
185,128

 
$
315,450

 
$
(1,109
)
 
$
(499,469
)
 
$
502,553



Condensed Consolidating Balance Sheet

As of May 31, 2019
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
54,963

 
$
13,151

 
$
28,531

 
$
—

 
$
96,645

Accounts receivable, net
—

 
719,914

 
121,803

 
68,403

 
—

 
910,120

Inventories, net
—

 
278,666

 
35,081

 
20,842

 
—

 
334,589

Uniforms and other rental
   items in service
—

 
645,862

 
90,458

 
60,061

 
(12,248
)
 
784,133

Income taxes, current
—

 
(9,728
)
 
11,722

 
5,481

 
—

 
7,475

Prepaid expenses and other
    current assets
—

 
81,117

 
20,334

 
1,867

 
—

 
103,318

Total current assets
—

 
1,770,794

 
292,549

 
185,185

 
(12,248
)
 
2,236,280

 
 
 
 
 
 
 
 
 
 
 
 
Property and equipment, net
—

 
948,830

 
369,006

 
112,849

 
—

 
1,430,685

 
 
 
 
 
 
 
 
 
 
 
 
Investments (1)
321,083

 
3,589,234

 
964,802

 
1,716,870

 
(6,399,643
)
 
192,346

Goodwill
—

 
—

 
2,586,406

 
256,147

 
(112
)
 
2,842,441

Service contracts, net
—

 
427,437

 
—

 
67,158

 
—

 
494,595

Other assets, net
2,216,391

 
211,102

 
5,424,413

 
1,716

 
(7,613,307
)
 
240,315

 
$
2,537,474

 
$
6,947,397

 
$
9,637,176

 
$
2,339,925

 
$
(14,025,310
)
 
$
7,436,662

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and
Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
(465,247
)
 
$
(2,090,954
)
 
$
2,793,558

 
$
(48,769
)
 
$
37,432

 
$
226,020

Accrued compensation and
    related liabilities
—

 
117,404

 
26,870

 
11,235

 
—

 
155,509

Accrued liabilities
—

 
84,296

 
328,267

 
21,377

 
—

 
433,940

Debt due within one year
—

 
312,264

 
—

 
—

 
—

 
312,264

Total current liabilities
(465,247
)
 
(1,576,990
)
 
3,148,695

 
(16,157
)
 
37,432

 
1,127,733

 
 
 
 
 
 
 
 
 
 
 
 
Long-term liabilities:
 

 
 

 
 

 
 

 
 

 
 

Debt due after one year
—

 
2,537,507

 
—

 
—

 
—

 
2,537,507

Deferred income taxes
—

 
307,334

 
100,162

 
30,683

 
—

 
438,179

Accrued liabilities
—

 
116,469

 
197,934

 
16,119

 
—

 
330,522

Total long-term liabilities
—

 
2,961,310

 
298,096

 
46,802

 
—

 
3,306,208

Total shareholders' equity
3,002,721

 
5,563,077

 
6,190,385

 
2,309,280

 
(14,062,742
)
 
3,002,721

 
$
2,537,474

 
$
6,947,397

 
$
9,637,176

 
$
2,339,925

 
$
(14,025,310
)
 
$
7,436,662

(1) Investments include inter company investment activity. Corp 2 and Subsidiary Guarantors hold $19.8 million and $172.5 million, respectively, of the $192.3 million consolidated net investments.
Condensed Consolidating Balance Sheet

As of May 31, 2018
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
44,499

 
$
60,310

 
$
33,915

 
$
—

 
$
138,724

Accounts receivable, net
—

 
620,920

 
120,767

 
62,896

 
—

 
804,583

Inventories, net
—

 
225,581

 
38,844

 
15,922

 
—

 
280,347

Uniforms and other rental
    items in service
—

 
585,108

 
81,494

 
54,248

 
(18,589
)
 
702,261

Income taxes, current
—

 
5,546

 
9,258

 
4,830

 
—

 
19,634

Prepaid expenses and other
     current assets
—

 
9,453

 
21,688

 
1,242

 
—

 
32,383

Total current assets
—

 
1,491,107

 
332,361

 
173,053

 
(18,589
)
 
1,977,932

 
 
 
 
 
 
 
 
 
 
 
 
Property and equipment, net
—

 
900,014

 
370,186

 
112,530

 
—

 
1,382,730

 
 
 
 
 
 
 
 
 
 
 
 
Investments (1)
321,083

 
3,595,668

 
950,239

 
1,716,070

 
(6,407,479
)
 
175,581

Goodwill
—

 
—

 
2,579,769

 
267,231

 
(112
)
 
2,846,888

Service contracts, net
—

 
468,283

 
—

 
77,485

 
—

 
545,768

Other assets, net
2,230,196

 
593

 
4,381,476

 
8,656

 
(6,591,606
)
 
29,315

 
$
2,551,279

 
$
6,455,665

 
$
8,614,031

 
$
2,355,025

 
$
(13,017,786
)
 
$
6,958,214

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and
Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
(465,247
)
 
$
(1,724,844
)
 
$
2,395,434

 
$
(28,216
)
 
$
37,947

 
$
215,074

Accrued compensation and  related liabilities
—

 
104,560

 
24,878

 
11,216

 
—

 
140,654

Accrued liabilities
—

 
88,949

 
308,485

 
22,695

 
—

 
420,129

Total current liabilities
(465,247
)
 
(1,531,335
)
 
2,728,797

 
5,695

 
37,947

 
775,857

 
 
 
 
 
 
 
 
 
 
 
 
Long-term liabilities:
 

 
 

 
 

 
 

 
 

 
 

Debt due after one year
—

 
2,534,919

 
—

 
390

 
—

 
2,535,309

Deferred income taxes
—

 
215,881

 
104,559

 
32,141

 
—

 
352,581

Accrued liabilities
—

 
63,073

 
198,181

 
16,687

 
—

 
277,941

Total long-term liabilities
—

 
2,813,873

 
302,740

 
49,218

 
—

 
3,165,831

Total shareholders' equity
3,016,526

 
5,173,127

 
5,582,494

 
2,300,112

 
(13,055,733
)
 
3,016,526

 
$
2,551,279

 
$
6,455,665

 
$
8,614,031

 
$
2,355,025

 
$
(13,017,786
)
 
$
6,958,214


(1) Investments include inter company investment activity. Corp 2 and Subsidiary Guarantors hold $17.6 million and $158.0 million, respectively, of the $175.6 million consolidated net investments.

Condensed Consolidating Statement of Cash Flows
Year Ended May 31, 2019
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net income
$
884,981

 
$
234,085

 
$
608,487

 
$
30,740

 
$
(873,312
)
 
$
884,981

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 
Depreciation
—

 
155,778

 
53,519

 
14,334

 
—

 
223,631

Amortization of intangible assets and
   capitalized contract costs
—

 
123,133

 
5,118

 
8,211

 
—

 
136,462

Stock-based compensation
139,210

 
—

 
—

 
—

 
—

 
139,210

Gain on sale of a cost method investment
—

 
—

 
(69,373
)
 
—

 
—

 
(69,373
)
     Gain on sale of business
—

 
(3,200
)
 
—

 
—

 
—

 
(3,200
)
Deferred income taxes
—

 
36,254

 
(4,416
)
 
(130
)
 
—

 
31,708

Changes in current assets and liabilities, net of acquisitions of businesses:
 
 
 
 
 
 
 
 
 
 
 
Accounts receivable, net
—

 
(85,568
)
 
(1,037
)
 
(8,313
)
 
—

 
(94,918
)
Inventories, net
—

 
(64,149
)
 
8,314

 
(4,204
)
 
—

 
(60,039
)
Uniforms and other rental items in service
—

 
(60,745
)
 
(13,514
)
 
(9,628
)
 
(6,341
)
 
(90,228
)
Prepaid expenses and other current
   assets and capitalized contract costs
—

 
(98,528
)
 
(1,538
)
 
(699
)
 
—

 
(100,765
)
Accounts payable
—

 
(359,733
)
 
368,519

 
4,005

 
(515
)
 
12,276

Accrued compensation and related liabilities
—

 
12,844

 
1,992

 
485

 
—

 
15,321

Accrued liabilities and other
—

 
15,624

 
15,521

 
(235
)
 
—

 
30,910

Income taxes, current
—

 
15,274

 
(2,472
)
 
(916
)
 
—

 
11,886

Net cash provided by (used in) operating activities
1,024,191

 
(78,931
)
 
969,120

 
33,650

 
(880,168
)
 
1,067,862

 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
(204,601
)
 
(52,622
)
 
(19,496
)
 
—

 
(276,719
)
Purchase of marketable securities and investments
—

 
6,434

 
(14,439
)
 
—

 
(9,836
)
 
(17,841
)
Proceeds from sale of a cost method investment
—

 
—

 
73,342

 
—

 
—

 
73,342

Proceeds from sale of business
—

 
3,200

 
—

 
—

 
—

 
3,200

Acquisitions of businesses, net of cash acquired
—

 
(9,813
)
 
—

 
—

 
—

 
(9,813
)
Other, net
147,409

 
(4,213
)
 
(1,025,822
)
 
(15,185
)
 
890,004

 
(7,807
)
Net cash provided by (used in) investing activities
147,409

 
(208,993
)
 
(1,019,541
)
 
(34,681
)
 
880,168

 
(235,638
)
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Issuance of commercial paper, net
—

 
112,500

 
—

 
—

 
—

 
112,500

Proceeds from issuance of debt, net
—

 
200,000

 
3,262

 
(3,262
)
 
—

 
200,000

Proceeds from exercise of stock-based
   compensation awards
65,371

 
—

 
—

 
—

 
—

 
65,371

Dividends paid
(220,671
)
 
—

 
—

 
(93
)
 
—

 
(220,764
)
Repurchase of common stock
(1,016,300
)
 
—

 
—

 
—

 
—

 
(1,016,300
)
Other, net
—

 
(14,112
)
 
—

 
—

 
—

 
(14,112
)
Net cash (used in) provided by financing activities
(1,171,600
)
 
298,388

 
3,262

 
(3,355
)
 
—

 
(873,305
)
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
—

 
—

 
—

 
(998
)
 
—

 
(998
)
Net increase (decrease) in cash and cash
   equivalents
—

 
10,464

 
(47,159
)
 
(5,384
)
 
—

 
(42,079
)
Cash and cash equivalents at beginning of year
—

 
44,499

 
60,310

 
33,915

 
—

 
138,724

Cash and cash equivalents at end of year
$
—

 
$
54,963

 
$
13,151

 
$
28,531

 
$
—

 
$
96,645

Condensed Consolidating Statement of Cash Flows
Year Ended May 31, 2018
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net income
$
842,586

 
$
342,851

 
$
470,215

 
$
27,568

 
$
(840,634
)
 
$
842,586

Adjustments to reconcile net income to net cash
    provided by operating activities:
 
 
 
 
 
 
 
 
 
 
 
Depreciation
—

 
143,301

 
58,206

 
13,969

 
—

 
215,476

Amortization of intangible assets
—

 
50,231

 
5,102

 
8,607

 
—

 
63,940

Stock-based compensation
112,835

 
—

 
—

 
—

 
—

 
112,835

(Gain) loss on sale of business
—

 
(111,921
)
 
15,521

 
—

 


 
(96,400
)
Deferred income taxes
—

 
(80,328
)
 
(38,906
)
 
(61
)
 
—

 
(119,295
)
Changes in current assets and liabilities,
   net of acquisitions of businesses:
 
 
 
 
 
 
 
 
 
 
 
Accounts receivable, net
—

 
(76,945
)
 
17,129

 
(6,451
)
 
—

 
(66,267
)
Inventories, net
—

 
15,080

 
(17,377
)
 
360

 
(1,386
)
 
(3,323
)
Uniforms and other rental items in service
—

 
(51,682
)
 
(3,483
)
 
(8,730
)
 
(404
)
 
(64,299
)
Prepaid expenses and other current assets
—

 
3,676

 
(19,421
)
 
219

 
—

 
(15,526
)
Accounts payable
—

 
(60,978
)
 
108,724

 
(12,310
)
 
(161
)
 
35,275

Accrued compensation and related liabilities
—

 
9,522

 
(18,595
)
 
(319
)
 
—

 
(9,392
)
Accrued liabilities and other
—

 
(133,671
)
 
173,905

 
2,234

 
—

 
42,468

Income taxes, current
—

 
11,874

 
15,898

 
(1,690
)
 
—

 
26,082

Net cash provided by operating activities
955,421

 
61,010

 
766,918

 
23,396

 
(842,585
)
 
964,160

 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
(192,668
)
 
(65,211
)
 
(13,820
)
 
—

 
(271,699
)
Proceeds from redemption of marketable securities
—

 
13,589

 
(1,189
)
 
167,457

 
—

 
179,857

Purchase of marketable securities and investments
—

 
9,789

 
(24,636
)
 
(143,861
)
 
5,000

 
(153,708
)
Proceeds from sale of business
—

 
127,835

 
—

 
—

 
—

 
127,835

Acquisitions of businesses, net of cash acquired
—

 
(19,346
)
 
—

 
—

 
—

 
(19,346
)
Other, net
(694,429
)
 
599,192

 
(633,629
)
 
(107,356
)
 
837,585

 
1,363

Net cash (used in) provided by investing activities
(694,429
)
 
538,391

 
(724,665
)
 
(97,580
)
 
842,585

 
(135,698
)
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Payments of commercial paper, net
—

 
(50,500
)
 
—

 
—

 
—

 
(50,500
)
Repayment of debt
—

 
(550,000
)
 
—

 
—

 
—

 
(550,000
)
Proceeds from exercise of stock-based compensation awards
41,848

 
—

 
—

 
—

 
—

 
41,848

Dividends paid
(175,521
)
 
—

 
—

 
(68
)
 
—

 
(175,589
)
Repurchase of common stock
(127,319
)
 
—

 
—

 
—

 
—

 
(127,319
)
Other, net
—

 
(3,060
)
 
755

 
(275
)
 
—

 
(2,580
)
Net cash (used in) provided by financing activities
(260,992
)
 
(603,560
)
 
755

 
(343
)
 
—

 
(864,140
)
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
—

 
—

 
—

 
5,136

 
—

 
5,136

Net (decrease) increase in cash and cash equivalents
—

 
(4,159
)
 
43,008

 
(69,391
)
 
—

 
(30,542
)
Cash and cash equivalents at beginning of year
—

 
48,658

 
17,302

 
103,306

 
—

 
169,266

Cash and cash equivalents at end of year
$
—

 
$
44,499

 
$
60,310

 
$
33,915

 
$
—

 
$
138,724


Condensed Consolidating Statement of Cash Flow
Year Ended May 31, 2017
(in thousands)
Cintas
Corporation
 
Corp. 2
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Cintas
Corporation
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net income
$
480,708

 
$
152,916

 
$
315,565

 
$
9,143

 
$
(477,624
)
 
$
480,708

Adjustments to reconcile net income to net cash
   provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 
Depreciation
—

 
117,578

 
43,660

 
10,327

 
—

 
171,565

Amortization of intangible assets
—

 
21,496

 
1,178

 
2,356

 
—

 
25,030

Stock-based compensation
88,868

 
—

 
—

 
—

 
—

 
88,868

Gain on sale of business
—

 
(24,976
)
 
—

 
(1,941
)
 
—

 
(26,917
)
Asset impairment charge
—

 
20,966

 
—

 
2,365

 
—

 
23,331

G&K Services, Inc. transaction and integration
    costs
—

 
26,453

 
—

 
4,992

 
—

 
31,445

Short-term debt financing fees included in
    net income
—

 
17,062

 
—

 
—

 
—

 
17,062

Settlement of cash flow hedges
—

 
30,194

 
—

 
—

 
—

 
30,194

Deferred income taxes
—

 
(26,289
)
 
26,058

 
4,133

 
—

 
3,902

Changes in current assets and liabilities, net of
   acquisitions of businesses:

 
 
 
 
 
 
 
 
 
 
Accounts receivable, net
—

 
(50,012
)
 
(40,380
)
 
(3,165
)
 
—

 
(93,557
)
Inventories, net
—

 
7,787

 
(2,317
)
 
(3,679
)
 
(2,459
)
 
(668
)
Uniforms and other rental items in service
—

 
(4,951
)
 
(5,011
)
 
1,959

 
(729
)
 
(8,732
)
Prepaid expenses and other current assets
—

 
21,119

 
2,775

 
307

 
—

 
24,201

Accounts payable
—

 
1,765,713

 
(1,509,215
)
 
(242,875
)
 
103

 
13,726

Accrued compensation and related liabilities
—

 
(7,498
)
 
19,815

 
1,337

 
—

 
13,654

Accrued liabilities and other
—

 
2,813

 
(5,675
)
 
2,361

 
—

 
(501
)
Income taxes, current
—

 
(5,205
)
 
(22,445
)
 
(1,774
)
 
—

 
(29,424
)
Net cash provided by (used in) operating activities
569,576

 
2,065,166

 
(1,175,992
)
 
(214,154
)
 
(480,709
)
 
763,887

 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
(153,963
)
 
(102,682
)
 
(16,672
)
 
—

 
(273,317
)
Proceeds from redemption of marketable securities
—

 
—

 
—

 
218,324

 
—

 
218,324

Purchase of marketable securities and investments
—

 
18,150

 
(797,559
)
 
598,344

 
—

 
(181,065
)
Proceeds from sale of business
—

 
26,335

 
—

 
1,941

 
—

 
28,276

Acquisitions of businesses, net of cash acquired
—

 
(2,112,015
)
 
—

 
9,644

 
—

 
(2,102,371
)
Other, net
(438,344
)
 
(1,562,294
)
 
2,039,740

 
(520,007
)
 
480,709

 
(196
)
Net cash (used in) provided by investing activities
(438,344
)
 
(3,783,787
)
 
1,139,499

 
291,574

 
480,709

 
(2,310,349
)
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of commercial paper, net
—

 
50,500

 
—

 
—

 
—

 
50,500

Proceeds from the issuance of debt, net
—

 
1,932,229

 
(2,000
)
 
2,000

 
—

 
1,932,229

Repayment of debt
—

 
(250,000
)
 
—

 
—

 
—

 
(250,000
)
Payment of short-term debt financing fees
—

 
(17,062
)
 
—

 
—

 
—

 
(17,062
)
Proceeds from exercise of stock-based compensation awards
31,870

 
—

 
—

 
—

 
—

 
31,870

Dividends paid
(142,378
)
 
—

 
—

 
(55
)
 
—

 
(142,433
)
Repurchase of common stock
(20,724
)
 
—

 
—

 
—

 
—

 
(20,724
)
Other, net
—

 
(6,282
)
 
404

 
—

 
—

 
(5,878
)
Net cash (used in) provided by financing activities
(131,232
)
 
1,709,385

 
(1,596
)
 
1,945

 
—

 
1,578,502

 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
—

 
—

 
—

 
(2,131
)
 
—

 
(2,131
)
Net (decrease) increase in cash and cash
   equivalents
—

 
(9,236
)
 
(38,089
)
 
77,234

 
—

 
29,909

Cash and cash equivalents at beginning of year
—

 
57,894

 
55,391

 
26,072

 
—

 
139,357

Cash and cash equivalents at end of year
$
—

 
$
48,658

 
$
17,302

 
$
103,306

 
$
—

 
$
169,266