Supplemental Guarantor Information (Tables)

6 Months Ended

Nov. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Consolidating Condensed Income Statement

Consolidating Condensed Income Statement

Three Months Ended November 30, 2019

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Revenue:
Uniform rental and facility services	$	—		$	1,167,960		$	194,468		$	108,195		$	(647	)	$	1,469,976
Other	—			606,540			171			24,360			(257,298		)	373,773
Equity in net income of affiliates	246,443			—			—			—			(246,443		)	—
Total revenue	246,443			1,774,500			194,639			132,555			(504,388		)	1,843,749
Costs and expenses (income):
Cost of uniform rental and facility services	—			635,235			112,505			69,362			(32,165		)	784,937
Cost of other	—			427,776			(26,862		)	18,954			(213,447		)	206,421
Selling and administrative expenses	—			591,422			(99,163		)	32,740			(7,072		)	517,927
Operating income	246,443			120,067			208,159			11,499			(251,704		)	334,464
Interest income	—			(157		)	(108		)	(20		)	2			(283		)
Interest expense (income)	—			26,264			(87		)	—			—			26,177
Income before income taxes	246,443			93,960			208,354			11,519			(251,706		)	308,570
Income taxes	—			18,660			40,652			2,851			(36		)	62,127
Income from continuing operations	246,443			75,300			167,702			8,668			(251,670		)	246,443
Loss from discontinued operations,    net of tax	(323		)	(323		)	—			—			323			(323		)
Net income	$	246,120		$	74,977		$	167,702		$	8,668		$	(251,347	)	$	246,120

Consolidating Condensed Income Statement

Three Months Ended November 30, 2018

(In thousands)

	Cintas Corporation		Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Revenue:
Uniform rental and facility services	$	—	$	1,134,118		$	182,876		$	101,830		$	(28,046	)	$	1,390,778
Other	—		522,081			50			25,918			(220,559		)	327,490
Equity in net income of affiliates	242,994		—			—			—			(242,994		)	—
Total revenue	242,994		1,656,199			182,926			127,748			(491,599		)	1,718,268
Costs and expenses (income):
Cost of uniform rental and facility    services	—		640,859			111,555			65,316			(56,611		)	761,119
Cost of other	—		375,764			(27,133		)	19,319			(185,959		)	181,991
Selling and administrative expenses	—		536,276			(68,617		)	32,559			(8,547		)	491,671
G&K Services, Inc. integration    expenses	—		5,973			1,270			604			—			7,847
Operating income	242,994		97,327			165,851			9,950			(240,482		)	275,640
Gain on sale of a cost method    investment	—		—			69,373			—			—			69,373
Interest income	—		(294		)	(93		)	(5		)	1			(391		)
Interest expense (income)	—		25,046			(173		)	7			—			24,880
Income before income taxes	242,994		72,575			235,490			9,948			(240,483		)	320,524
Income taxes	—		19,166			55,788			2,613			(37		)	77,530
Income from continuing operations	242,994		53,409			179,702			7,335			(240,446		)	242,994
Income from discontinued operations,    net of tax	19		19			—			—			(19		)	19
Net income	$	243,013	$	53,428		$	179,702		$	7,335		$	(240,465	)	$	243,013

Consolidating Condensed Income Statement

Six Months Ended November 30, 2019

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Revenue:
Uniform rental and facility services	$	—		$	2,326,851		$	385,203		$	213,589		$	(1,140	)	$	2,924,503
Other	—			1,189,516			268			47,606			(507,005		)	730,385
Equity in net income of affiliates	497,255			—			—			—			(497,255		)	—
Total revenue	497,255			3,516,367			385,471			261,195			(1,005,400		)	3,654,888
Costs and expenses (income):
Cost of uniform rental and facility services	—			1,257,116			224,239			134,957			(62,699		)	1,553,613
Cost of other	—			831,260			(49,539		)	36,653			(418,632		)	399,742
Selling and administrative expenses	—			1,190,825			(183,420		)	67,194			(13,676		)	1,060,923
Operating income	497,255			237,166			394,191			22,391			(510,393		)	640,610
Interest income	—			(307		)	(107		)	(34		)	3			(445		)
Interest expense (income)	—			53,624			(140		)	14			—			53,498
Income before income taxes	497,255			183,849			394,438			22,411			(510,396		)	587,557
Income taxes	—			26,861			57,630			5,872			(61		)	90,302
Income from continuing operations	497,255			156,988			336,808			16,539			(510,335		)	497,255
Loss from discontinued operations,    net of tax	(323		)	(323		)	—			—			323			(323		)
Net income	$	496,932		$	156,665		$	336,808		$	16,539		$	(510,012	)	$	496,932

Consolidating Condensed Income Statement

Six Months Ended November 30, 2018

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Revenue:
Uniform rental and facility services	$	—		$	2,273,247		$	366,039		$	201,513		$	(75,083	)	$	2,765,716
Other	—			1,013,371			93			50,250			(413,187		)	650,527
Equity in net income of affiliates	455,541			—			—			—			(455,541		)	—
Total revenue	455,541			3,286,618			366,132			251,763			(943,811		)	3,416,243
Costs and expenses (income):
Cost of uniform rental and facility    services	—			1,284,600			221,105			129,329			(127,462		)	1,507,572
Cost of other	—			717,097			(49,162		)	37,461			(346,595		)	358,801
Selling and administrative expenses	—			1,081,186			(133,238		)	66,922			(18,565		)	996,305
G&K Services, Inc. integration    expenses	—			8,649			3,133			915			—			12,697
Operating income	455,541			195,086			324,294			17,136			(451,189		)	540,868
Gain on sale of a cost method    investment	—			—			69,373			—			—			69,373
Interest income	—			(503		)	(365		)	(21		)	2			(887		)
Interest expense (income)	—			49,707			(535		)	12			—			49,184
Income before income taxes	455,541			145,882			394,567			17,145			(451,191		)	561,944
Income taxes	—			29,829			71,832			4,800			(58		)	106,403
Income from continuing operations	455,541			116,053			322,735			12,345			(451,133		)	455,541
Loss from discontinued operations,    net of tax	(13		)	(13		)	—			—			13			(13		)
Net income	$	455,528		$	116,040		$	322,735		$	12,345		$	(451,120	)	$	455,528

Consolidating Condensed Statement of Comprehensive Income

Consolidating Condensed Statement of Comprehensive Income

Three Months Ended November 30, 2019

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors		Non- Guarantors		Eliminations			Cintas Corporation Consolidated
Net income	$	246,120		$	74,977		$	167,702	$	8,668	$	(251,347	)	$	246,120
Other comprehensive income    (loss), net of tax:
Foreign currency translation adjustments	1,413			—			—		1,413		(1,413		)	1,413
Change in fair value of interest rate lock agreements	22,761			22,761			—		—		(22,761		)	22,761
Amortization of interest rate    lock agreements	(358		)	(358		)	—		—		358			(358		)
Other comprehensive income	23,816			22,403			—		1,413		(23,816		)	23,816
Comprehensive income	$	269,936		$	97,380		$	167,702	$	10,081	$	(275,163	)	$	269,936

Consolidating Condensed Statement of Comprehensive Income

Three Months Ended November 30, 2018

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors		Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Net income	$	243,013		$	53,428		$	179,702	$	7,335		$	(240,465	)	$	243,013
Other comprehensive (loss)    income, net of tax:
Foreign currency translation adjustments	(10,623		)	—			—		(10,623		)	10,623			(10,623		)
Change in fair value of interest    rate lock agreements	4,921			4,921			—		—			(4,921		)	4,921
Amortization of interest rate lock agreements	(294		)	(294		)	—		—			294			(294		)
Other comprehensive (loss)    income	(5,996		)	4,627			—		(10,623		)	5,996			(5,996		)
Comprehensive income (loss)	$	237,017		$	58,055		$	179,702	$	(3,288	)	$	(234,469	)	$	237,017

Consolidating Condensed Statement of Comprehensive Income

Six Months Ended November 30, 2019

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors		Non- Guarantors		Eliminations			Cintas Corporation Consolidated
Net income	$	496,932		$	156,665		$	336,808	$	16,539	$	(510,012	)	$	496,932
Other comprehensive income    (loss), net of tax:
Foreign currency translation adjustments	8,137			—			—		8,137		(8,137		)	8,137
Change in fair value of interest rate lock agreements	(7,142		)	(7,142		)	—		—		7,142			(7,142		)
Amortization of interest rate    lock agreements	(653		)	(653		)	—		—		653			(653		)
Other comprehensive income      (loss)	342			(7,795		)	—		8,137		(342		)	342
Comprehensive income	$	497,274		$	148,870		$	336,808	$	24,676	$	(510,354	)	$	497,274

Consolidating Condensed Statement of Comprehensive Income

Six Months Ended November 30, 2018

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors		Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Net income	$	455,528		$	116,040		$	322,735	$	12,345		$	(451,120	)	$	455,528
Other comprehensive (loss)    income, net of tax:
Foreign currency translation adjustments	(13,642		)	—			—		(13,642		)	13,642			(13,642		)
Change in fair value of interest    rate lock agreements	1,753			1,753			—		—			(1,753		)	1,753
Amortization of interest rate lock agreements	(589		)	(589		)	—		—			589			(589		)
Other comprehensive (loss)    income	(12,478		)	1,164			—		(13,642		)	12,478			(12,478		)
Comprehensive income (loss)	$	443,050		$	117,204		$	322,735	$	(1,297	)	$	(438,642	)	$	443,050

Consolidating Condensed Balance Sheet

Consolidating Condensed Balance Sheet

As of November 30, 2019

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors		Non- Guarantors			Eliminations			Cintas Corporation Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	50,716		$	127,948	$	47,871		$	—		$	226,535
Accounts receivable, net	—			744,116			133,546		71,460			—			949,122
Inventories, net	—			297,396			29,796		21,112			—			348,304
Uniforms and other rental     items in service	—			677,309			92,726		63,349			(15,525		)	817,859
Income taxes, current	—			3,831			15,457		5,590			—			24,878
Prepaid expenses and    other current assets	—			85,738			35,962		1,889			—			123,589
Total current assets	—			1,859,106			435,435		211,271			(15,525		)	2,490,287
Property and equipment, net	—			968,662			357,032		99,890			—			1,425,584
Investments (1)	321,083			3,589,691			990,871		1,697,996			(6,380,768		)	218,873
Goodwill	—			—			2,592,194		260,719			(112		)	2,852,801
Service contracts, net	—			405,201			—		64,732			—			469,933
Operating lease right-of-use    assets, net	—			141,697			12,905		14,631			—			169,233
Other assets, net	2,318,640			233,167			5,847,006		1,298			(8,139,485		)	260,626
	$	2,639,723		$	7,197,524		$	10,235,443	$	2,350,537		$	(14,535,890	)	$	7,887,337
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	(465,247	)	$	(1,998,351	)	$	2,753,017	$	(72,014	)	$	37,206		$	254,611
Accrued compensation   and related liabilities	—			77,493			36,653		10,203			—			124,349
Accrued liabilities	—			78,371			580,340		15,529			—			674,240
Operating lease liabilities,    current	—			35,402			4,533		4,328			—			44,263
Debt due within one year	—			199,788			—		—			—			199,788
Total current liabilities	(465,247		)	(1,607,297		)	3,374,543		(41,954		)	37,206			1,297,251
Long-term liabilities:
Debt due after one year	—			2,538,606			—		—			—			2,538,606
Deferred income taxes	—			311,326			101,464		31,067			—			443,857
Operating lease liabilities	—			110,833			9,010		10,737			—			130,580
Accrued liabilities	—			132,109			223,232		16,732			—			372,073
Total long-term liabilities	—			3,092,874			333,706		58,536			—			3,485,116
Total shareholders’ equity	3,104,970			5,711,947			6,527,194		2,333,955			(14,573,096		)	3,104,970
	$	2,639,723		$	7,197,524		$	10,235,443	$	2,350,537		$	(14,535,890	)	$	7,887,337

⁽¹⁾   Investments include inter-company investment activity. Corp 2 and Subsidiary Guarantors hold $20.3 million and $198.6 million, respectively, of the $218.9 million consolidated net investments.

Consolidating Condensed 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.

Consolidating Condensed Statement of Cash Flows

Consolidating Condensed Statement of Cash Flows

Six Months Ended November 30, 2019

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Cash flows from operating activities:
Net income	$	496,932		$	156,665		$	336,808		$	16,539		$	(510,012	)	$	496,932
Adjustments to reconcile net income to net cash provided by operating     activities
Depreciation	—			75,691			32,499			7,177			—			115,367
Amortization of intangible assets and     capitalized contract costs	—			64,325			2,559			4,079			—			70,963
Stock-based compensation	69,398			—			—			—			—			69,398
Deferred income taxes	—			6,490			1,309			(167		)	—			7,632
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(24,190		)	(11,743		)	(2,007		)	—			(37,940		)
Inventories, net	—			(18,709		)	6,042			(735		)	—			(13,402		)
Uniforms and other rental items    in service	—			(31,448		)	(2,268		)	(2,305		)	3,277			(32,744		)
Prepaid expenses and other current    assets and capitalized contract costs	—			(52,765		)	(15,629		)	(15		)	—			(68,409		)
Accounts payable	—			92,602			(65,280		)	959			(226		)	28,055
Accrued compensation and related liabilities	—			(39,911		)	9,298			1,287			—			(29,326		)
Accrued liabilities and other	—			3,820			(18,688		)	(3,015		)	—			(17,883		)
Income taxes, current	—			(13,559		)	(3,732		)	(1		)	—			(17,292		)
Net cash provided by operating activities	566,330			219,011			271,175			21,796			(506,961		)	571,351
Cash flows from investing activities:
Capital expenditures	—			(95,361		)	(20,584		)	(10,222		)	—			(126,167		)
Purchases of investments	—			(457		)	(9,664		)	—			—			(10,121		)
Proceeds from sale of assets	—			—			—			13,300			—			13,300
Acquisitions of businesses, net of cash acquired	—			(6,582		)	—			—			—			(6,582		)
Other, net	(370,790		)	(6,406		)	(126,130		)	(5,738		)	506,961			(2,103		)
Net cash used in investing activities	(370,790		)	(108,806		)	(156,378		)	(2,660		)	506,961			(131,673		)
Cash flows from financing activities:
Payments of commercial paper, net	—			(112,500		)	—			—			—			(112,500		)
Proceeds from exercise of stock-based compensation awards	63,201			—			—			—			—			63,201
Repurchase of common stock	(258,741		)	—			—			—			—			(258,741		)
Other, net	—			(1,952		)	—			—			—			(1,952		)
Net cash used in financing activities	(195,540		)	(114,452		)	—			—			—			(309,992		)
Effect of exchange rate changes on cash     and cash equivalents	—			—			—			204			—			204
Net (decrease) increase in cash and cash    equivalents	—			(4,247		)	114,797			19,340			—			129,890
Cash and cash equivalents at beginning of period	—			54,963			13,151			28,531			—			96,645
Cash and cash equivalents at end of period	$	—		$	50,716		$	127,948		$	47,871		$	—		$	226,535

Consolidating Condensed Statement of Cash Flows

Six Months Ended November 30, 2018

(In thousands)

	Cintas Corporation			Corp. 2			Subsidiary Guarantors			Non- Guarantors			Eliminations			Cintas Corporation Consolidated
Cash flows from operating activities:
Net income	$	455,528		$	116,040		$	322,735		$	12,345		$	(451,120	)	$	455,528
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation	—			68,929			31,274			6,909			—			107,112
Amortization of intangible assets and    capitalized contract costs	—			61,044			2,339			4,176			—			67,559
Stock-based compensation	74,784			—			—			—			—			74,784
Gain on sale of a cost method investment	—			—			(69,373		)	—			—			(69,373		)
Deferred income taxes	—			10,865			5,519			2,843			—			19,227
Changes in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	—			(52,953		)	(20,151		)	(10,183		)	(2,461		)	(85,748		)
Inventories, net	—			(52,989		)	3,546			(2,153		)	(1,631		)	(53,227		)
Uniforms and other rental items in service	—			(39,481		)	(11,051		)	(7,152		)	—			(57,684		)
Prepaid expenses and other current    assets and capitalized contract costs	—			(52,392		)	(5,570		)	(199		)	—			(58,161		)
Accounts payable	—			(98,465		)	90,324			6,502			(316		)	(1,955		)
Accrued compensation and related    liabilities	—			(16,186		)	(6,468		)	1,685			—			(20,969		)
Accrued liabilities and other	—			(1,908		)	(9,983		)	(3,431		)	—			(15,322		)
Income taxes, current	—			(5,329		)	(7,109		)	(4,766		)	—			(17,204		)
Net cash provided by (used in) operating    activities	530,312			(62,825		)	326,032			6,576			(455,528		)	344,567
Cash flows from investing activities:
Capital expenditures	—			(92,461		)	(37,357		)	(7,796		)	—			(137,614		)
Purchases of investments	—			(466		)	(13,605		)	—			—			(14,071		)
Proceeds from sale of a cost method    investment	—			—			73,342			—			—			73,342
Acquisitions of businesses, net of cash acquired	—			(6,580		)	—			—			—			(6,580		)
Other, net	(54,795		)	(2,534		)	(398,963		)	(953		)	455,528			(1,717		)
Net cash used in investing activities	(54,795		)	(102,041		)	(376,583		)	(8,749		)	455,528			(86,640		)
Cash flows from financing activities:
Issuance of commercial paper, net	—			173,500			—			—			—			173,500
Proceeds from exercise of stock-based compensation awards	32,612			—			—			—			—			32,612
Repurchase of common stock	(508,129		)	—			—			—			—			(508,129		)
Other, net	—			(5,362		)	—			—			—			(5,362		)
Net cash (used in) provided by financing activities	(475,517		)	168,138			—			—			—			(307,379		)
Effect of exchange rate changes on cash and    cash equivalents	—			—			—			(793		)	—			(793		)
Net increase (decrease) in cash and cash    equivalents	—			3,272			(50,551		)	(2,966		)	—			(50,245		)
Cash and cash equivalents at beginning of period	—			44,499			60,310			33,915			—			138,724
Cash and cash equivalents at end of period	$	—		$	47,771		$	9,759		$	30,949		$	—		$	88,479