Acquisitions

12 Months Ended

May 31, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Acquisitions

Acquisitions

The purchase price paid for each acquisition has been allocated to the fair value of the assets acquired and liabilities assumed. Cintas acquired the following number of individually immaterial businesses by reportable operating segment and All Other during the fiscal years ended May 31:

	2024	2023
Uniform Rental and Facility Services	7	4
First Aid and Safety Services	1	6
All Other	8	9

The following summarizes the aggregate purchase price and fair value allocations for all businesses acquired during the fiscal years ended May 31:

(In thousands)	2024		2023
Fair value of tangible assets acquired	$	14,350	$	6,133
Fair value of service contracts acquired	29,416		10,998
Fair value of other intangibles acquired	5,278		1,561
Net goodwill recognized	157,239		31,847
Total fair value of assets acquired	206,283		50,539
Total fair value of liabilities assumed	—		(61)
Total fair value of net assets acquired, net of cash acquired	206,283		50,478
Deferred purchase price consideration	(19,446)		(4,121)
Total cash consideration for acquisitions, net of cash acquired	$	186,837	$	46,357

Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The factors contributing to the recognition of goodwill were based on strategic benefits that are expected to be realized from the acquisitions. None of the goodwill is expected to be deductible for income tax purposes.

Cintas is required to provide additional disclosures about fair value measurements as part of the consolidated condensed financial statements for each major category of assets and liabilities measured at fair value on a nonrecurring basis (including business combinations). The working capital assets and liabilities, as well as the property and equipment acquired, were valued using Level 2 inputs which included data points that are observable, such as definitive sales agreements, appraisals or established market values of comparable assets (market approach). Goodwill and separately identifiable intangible assets were valued using Level 3 inputs, which are unobservable by nature, and included internal estimates of future cash flows (income approach). The results of operations of the acquisition are included in Cintas' consolidated statements of income subsequent to the date of acquisition and are not material to the consolidated financial statements.