Goodwill, Service Contracts and Other Assets

9 Months Ended

Feb. 29, 2012

Goodwill, Service Contracts and Other Assets

Goodwill, Service Contracts and Other Assets

5.Goodwill, Service Contracts and Other Assets

Changes in the carrying amount of goodwill and service contracts for the nine months ended February 29, 2012, by operating segment, are as follows:

	Rental		First Aid,
	Uniforms &	Uniform	Safety &
	Ancillary	Direct	Fire	Document
	Products	Sales	Protection	Management	Total
Goodwill (in thousands)
Balance as of June 1, 2011	$943,177	$23,995	$192,944	$327,766	$1,487,882
Goodwill acquired/adjusted	2,163	—	(479)	(571)	1,113
Foreign currency translation	(366)	(7)	—	(2,157)	(2,530)
Balance as of February 29, 2012	$944,974	$23,988	$192,465	$325,038	$1,486,465
	Rental		First Aid,
	Uniforms &	Uniform	Safety &
	Ancillary	Direct	Fire	Document
	Products	Sales	Protection	Management	Total
Service Contracts (in thousands)
Balance as of June 1, 2011	$ 44,628	$     —	$ 35,878	$ 21,806	$102,312
Service contracts acquired	1,346	—	838	1,573	3,757
Service contracts amortization	(12,287)	—	(5,522)	(5,717)	(23,526)
Foreign currency translation	(513)	—	—	(364)	(877)
Balance as of February 29, 2012	$ 33,174	$     —	$ 31,194	$ 17,298	$ 81,666

Information regarding Cintas’ service contracts and other assets is as follows:

	As of February 29, 2012
	Carrying	Accumulated
(In thousands)	Amount	Amortization	Net
Service contracts	$382,835	$301,169	$	81,666
Noncompete agreements	$76,231	$69,076	$	7,155
Investments(1)	91,638	—	91,638
Other	22,578	5,905	16,673
Total	$190,447	$74,981	$	115,466
	As of May 31, 2011
	Carrying	Accumulated
(In thousands)	Amount	Amortization	Net
Service contracts	$379,967	$277,655	$	102,312
Noncompete agreements	$  76,091	$  63,982	$	12,109
Investments(1)	84,197	—	84,197
Other	23,135	4,690	18,445
Total	$183,423	$68,672	$	114,751

(1)Investments at February 29, 2012, include the cash surrender value of insurance policies of $58.1 million, equity method investments of $32.7 million and cost method investments of $0.8 million.  Investments at May 31, 2011, include the cash surrender value of insurance policies of $51.1 million, equity method investments of $30.2 million and cost method investments of $2.9 million.

Amortization expense was $29.5 million and $32.2 million for the nine months ended February 29, 2012 and February 28, 2011, respectively.  Estimated amortization expense, excluding any future acquisitions, for each of the next five fiscal years is $38.1 million, $21.5 million, $18.1 million, $15.2 million and $9.8 million, respectively.

Investments recorded using the cost method are evaluated for impairment on an annual basis or when indicators of impairment are identified.  For the nine months ended February 29, 2012 and February 28, 2011, no losses due to impairment were recorded.