XML 61 R46.htm IDEA: XBRL DOCUMENT v3.19.2
Supplemental Guarantor Information (Tables)
 12 Months Ended
May 31, 2019
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Income Statement
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
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
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
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