Revenue Recognition

6 Months Ended

Nov. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The following table presents Cintas' total revenue disaggregated by operating segment:

	Three Months Ended								Six Months Ended
(In thousands)	November 30, 2024				November 30, 2023				November 30, 2024				November 30, 2023
Uniform Rental    and Facility    Services	$	1,990,410	77.7	%	$	1,850,542	77.9	%	$	3,924,249	77.5	%	$	3,677,367	77.9	%
First Aid and    Safety Services	299,367		11.7	%	266,401		11.2	%	591,934		11.7	%	527,094		11.2	%
Fire Protection    Services	193,749		7.5	%	173,950		7.3	%	391,246		7.7	%	348,266		7.4	%
Uniform Direct    Sales	78,257		3.1	%	86,284		3.6	%	155,941		3.1	%	166,780		3.5	%
Total revenue	$	2,561,783	100.0	%	$	2,377,177	100.0	%	$	5,063,370	100.0	%	$	4,719,507	100.0	%

The Fire Protection Services and Uniform Direct Sales operating segments are included within All Other as disclosed in Note 11 entitled Segment Information.

Revenue Recognition Policy

Approximately 95% of the Company's revenue is derived from fees for route servicing of Uniform Rental and Facility Services, First Aid and Safety Services and Fire Protection Services customers, performed by a Cintas employee-partner, at the customer's location of business. Revenue from our route servicing customer contracts represent a single-performance obligation. The Company recognizes revenue over time as services are performed, based on the nature of services provided and contractual rates (output method) or at a point in time when the performance obligation under the terms of the contract with a customer are satisfied, at the customer's location of business. The Company's performance period generally corresponds with the monthly invoice period. The Company's remaining revenue, primarily within the Uniform Direct Sales operating segment, and representing approximately 5% of the Company's total revenue, is recognized when the obligations under the terms of a contract with a customer are satisfied. This generally occurs when the goods are transferred to the customer.

We are exposed to credit losses primarily through our trade receivables. We determine the allowance for credit losses using both an estimate, based on historical rates of collections, and reserves for specific accounts identified as uncollectible. The portion of the allowance for credit losses that is an estimate based on Cintas' historical rates of collections is recorded for overdue amounts, beginning with a nominal percentage when the account is current and increasing substantially as the account ages. The amount provided as the account ages will differ slightly between the Uniform Rental and Facility Services reportable operating segment, the First Aid and Safety Services reportable operating segment and All Other because of differences in customers served and the nature of each business. We update our allowance for credit losses quarterly, considering recent write-offs and collections information and underlying economic expectations.

Costs to Obtain a Contract

The Company capitalizes commission expenses paid to our employee-partners when the commissions are deemed to be incremental for obtaining the route servicing customer contract. Capitalized commissions are classified as current or noncurrent based on the timing of when we expect to recognize the expense. The current portion is included in prepaid expenses and other current assets, and the noncurrent portion is included in other assets, net on the Company's consolidated condensed balance sheets. As of November 30, 2024, the current and noncurrent assets related to capitalized commissions totaled $95.0 million and $268.9 million, respectively. As of May 31, 2024, the current and noncurrent assets related to capitalized commissions totaled $94.6 million and $262.5 million, respectively. The Company recorded amortization expense related to capitalized commissions of $26.7 million and $25.2 million during the three months ended November 30, 2024 and 2023, respectively. During the six months ended November 30, 2024 and 2023, we recorded amortization expense related to capitalized commissions of $52.6 million and $49.6 million, respectively. These expenses are classified in selling and administrative expenses on the consolidated condensed statements of income.