Acquisitions

6 Months Ended

Nov. 30, 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. The fair value summarized in the table below is reflective of the accumulated fair value, as of the date of each acquisition. Cintas acquired the following number of individually immaterial businesses by reportable operating segment and All Other during the six months ended November 30:

	2024	2023
Uniform Rental and Facility Services	5	5
First Aid and Safety Services	2	1
All Other	8	5

The following summarizes the aggregate purchase price and fair value allocations for all businesses acquired during the six months ended November 30:

(In thousands)	2024		2023
Fair value of tangible assets acquired	$	21,987	$	5,880
Fair value of service contracts acquired	30,702		9,480
Fair value of other intangibles acquired	5,247		2,762
Net goodwill recognized	117,124		64,060
Total fair value of assets acquired	175,060		82,182
Total fair value of liabilities assumed	(2,417)		—
Total fair value of net assets acquired, net of cash acquired	172,643		82,182
Deferred purchase price consideration	(17,759)		(8,185)
Total cash consideration for acquisitions, net of cash acquired	$	154,884	$	73,997

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 condensed financial statements.