QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the quarterly period ended | August 31, 2019 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
31-1188630 | ||
(State or | ( |
6800 Cintas Boulevard | |||
P.O. Box 625737 | |||
Cincinnati, | Ohio | 45262-5737 | |
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||
Common stock, no par value | CTAS | The NASDAQ Stock Market LLC | ||
(NASDAQ Global Select Market) |
Class | Outstanding | |
Common Stock, no par value |
Page No. | |||||
Part I. | Financial Information | ||||
Three | |||||
Three | |||||
Three Months Ended August 31, 2019 and 2018 | |||||
Item 6. | |||||
Three Months Ended | |||||||
August 31, 2019 | August 31, 2018 | ||||||
Revenue: | |||||||
Uniform rental and facility services | $ | 1,454,527 | $ | 1,374,938 | |||
Other | 356,612 | 323,037 | |||||
Total revenue | 1,811,139 | 1,697,975 | |||||
Costs and expenses: | |||||||
Cost of uniform rental and facility services | 768,676 | 746,453 | |||||
Cost of other | 193,321 | 176,810 | |||||
Selling and administrative expenses | 542,996 | 504,634 | |||||
G&K Services, Inc. integration expenses | — | 4,850 | |||||
Operating income | 306,146 | 265,228 | |||||
Interest income | (162 | ) | (496 | ) | |||
Interest expense | 27,321 | 24,304 | |||||
Income before income taxes | 278,987 | 241,420 | |||||
Income taxes | 28,175 | 28,873 | |||||
Income from continuing operations | 250,812 | 212,547 | |||||
Loss from discontinued operations, net of tax benefit of $10 | — | (32 | ) | ||||
Net income | $ | 250,812 | $ | 212,515 | |||
Basic earnings per share: | |||||||
Continuing operations | $ | 2.40 | $ | 1.96 | |||
Discontinued operations | 0.00 | 0.00 | |||||
Basic earnings per share | $ | 2.40 | $ | 1.96 | |||
Diluted earnings per share: | |||||||
Continuing operations | $ | 2.32 | $ | 1.89 | |||
Discontinued operations | 0.00 | 0.00 | |||||
Diluted earnings per share | $ | 2.32 | $ | 1.89 |
Three Months Ended | Six Months Ended | ||||||||||||||
November 30, 2017 | November 30, 2016 | November 30, 2017 | November 30, 2016 | ||||||||||||
Revenue: | |||||||||||||||
Uniform rental and facility services | $ | 1,308,038 | $ | 1,000,015 | $ | 2,619,822 | $ | 1,994,297 | |||||||
Other | 298,403 | 271,062 | 598,122 | 543,430 | |||||||||||
1,606,441 | 1,271,077 | 3,217,944 | 2,537,727 | ||||||||||||
Costs and expenses: | |||||||||||||||
Cost of uniform rental and facility services | 723,960 | 551,498 | 1,430,823 | 1,088,595 | |||||||||||
Cost of other | 166,112 | 154,361 | 331,399 | 307,487 | |||||||||||
Selling and administrative expenses | 468,084 | 361,415 | 954,367 | 731,118 | |||||||||||
G&K Services, Inc. transaction and integration expenses | 13,074 | 3,347 | 17,045 | 6,134 | |||||||||||
Operating income | 235,211 | 200,456 | 484,310 | 404,393 | |||||||||||
Interest income | (291 | ) | (31 | ) | (588 | ) | (96 | ) | |||||||
Interest expense | 29,129 | 13,267 | 59,446 | 27,439 | |||||||||||
Income before income taxes | 206,373 | 187,220 | 425,452 | 377,050 | |||||||||||
Income taxes | 68,636 | 65,270 | 126,607 | 118,892 | |||||||||||
Income from continuing operations | 137,737 | 121,950 | 298,845 | 258,158 | |||||||||||
(Loss) income from discontinued operations, net of tax benefit of $624 and tax expense of $9,851, $41,103 and $10,992, respectively | (628 | ) | 18,427 | 55,475 | 20,310 | ||||||||||
Net income | $ | 137,109 | $ | 140,377 | $ | 354,320 | $ | 278,468 | |||||||
Basic earnings (loss) per share: | |||||||||||||||
Continuing operations | $ | 1.27 | $ | 1.15 | $ | 2.77 | $ | 2.42 | |||||||
Discontinued operations | (0.01 | ) | 0.17 | 0.51 | 0.19 | ||||||||||
Basic earnings per share | $ | 1.26 | $ | 1.32 | $ | 3.28 | $ | 2.61 | |||||||
Diluted earnings (loss) per share: | |||||||||||||||
Continuing operations | $ | 1.24 | $ | 1.12 | $ | 2.69 | $ | 2.36 | |||||||
Discontinued operations | (0.01 | ) | 0.17 | 0.50 | 0.19 | ||||||||||
Diluted earnings per share | $ | 1.23 | $ | 1.29 | $ | 3.19 | $ | 2.55 | |||||||
Dividends declared per share | $ | 1.62 | $ | 1.33 | $ | 1.62 | $ | 1.33 |
Three Months Ended | |||||||
August 31, 2019 | August 31, 2018 | ||||||
Net income | $ | 250,812 | $ | 212,515 | |||
Other comprehensive income (loss), net of tax: | |||||||
Foreign currency translation adjustments | 6,724 | (3,019 | ) | ||||
Change in fair value of interest rate lock agreements | (29,903 | ) | (3,168 | ) | |||
Amortization of interest rate lock agreements | (295 | ) | (295 | ) | |||
Other comprehensive loss | (23,474 | ) | (6,482 | ) | |||
Comprehensive income | $ | 227,338 | $ | 206,033 |
Three Months Ended | Six Months Ended | ||||||||||||||
November 30, 2017 | November 30, 2016 | November 30, 2017 | November 30, 2016 | ||||||||||||
Net income | $ | 137,109 | $ | 140,377 | $ | 354,320 | $ | 278,468 | |||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||
Foreign currency translation adjustments | (11,374 | ) | (7,650 | ) | 23,810 | (7,535 | ) | ||||||||
Change in fair value of cash flow hedges | — | 26,390 | — | 14,353 | |||||||||||
Amortization of interest rate lock agreements | (172 | ) | 385 | (344 | ) | 770 | |||||||||
Change in fair value of available-for-sale securities | (20 | ) | 1 | — | — | ||||||||||
Other comprehensive (loss) income | (11,566 | ) | 19,126 | 23,466 | 7,588 | ||||||||||
Comprehensive income | $ | 125,543 | $ | 159,503 | $ | 377,786 | $ | 286,056 |
November 30, 2017 | May 31, 2017 | August 31, 2019 | May 31, 2019 | |||||||||||
(Unaudited) | (Unaudited) | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 236,002 | $ | 169,266 | $ | 102,131 | $ | 96,645 | ||||||
Marketable securities | 22,732 | 22,219 | ||||||||||||
Accounts receivable, net | 763,555 | 736,008 | 917,535 | 910,120 | ||||||||||
Inventories, net | 272,830 | 278,218 | 336,290 | 334,589 | ||||||||||
Uniforms and other rental items in service | 674,572 | 635,702 | 796,187 | 784,133 | ||||||||||
Income taxes, current | 35,700 | 44,320 | — | 7,475 | ||||||||||
Prepaid expenses and other current assets | 38,058 | 30,132 | 137,675 | 103,318 | ||||||||||
Assets held for sale | — | 38,613 | ||||||||||||
Total current assets | 2,043,449 | 1,954,478 | 2,289,818 | 2,236,280 | ||||||||||
Property and equipment, net | 1,353,159 | 1,323,501 | 1,422,351 | 1,430,685 | ||||||||||
Investments | 175,663 | 164,788 | 208,987 | 192,346 | ||||||||||
Goodwill | 2,811,796 | 2,782,335 | 2,849,613 | 2,842,441 | ||||||||||
Service contracts, net | 565,574 | 586,988 | 482,977 | 494,595 | ||||||||||
Operating lease right-of-use assets, net | 163,089 | — | ||||||||||||
Other assets, net | 29,160 | 31,967 | 245,065 | 240,315 | ||||||||||
$ | 6,978,801 | $ | 6,844,057 | $ | 7,661,900 | $ | 7,436,662 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 162,981 | $ | 177,051 | $ | 237,242 | $ | 226,020 | ||||||
Accrued compensation and related liabilities | 113,430 | 149,635 | 99,200 | 155,509 | ||||||||||
Accrued liabilities | 577,960 | 429,809 | 395,416 | 433,940 | ||||||||||
Income taxes, current | 9,238 | — | ||||||||||||
Operating lease liabilities, current | 43,010 | — | ||||||||||||
Debt due within one year | 300,000 | 362,900 | 338,776 | 312,264 | ||||||||||
Liabilities held for sale | — | 11,457 | ||||||||||||
Total current liabilities | 1,154,371 | 1,130,852 | 1,122,882 | 1,127,733 | ||||||||||
Long-term liabilities: | ||||||||||||||
Debt due after one year | 2,534,222 | 2,770,624 | 2,538,057 | 2,537,507 | ||||||||||
Deferred income taxes | 539,043 | 469,328 | 436,755 | 438,179 | ||||||||||
Operating lease liabilities | 125,684 | — | ||||||||||||
Accrued liabilities | 198,132 | 170,460 | 387,816 | 330,522 | ||||||||||
Total long-term liabilities | 3,271,397 | 3,410,412 | 3,488,312 | 3,306,208 | ||||||||||
Shareholders’ equity: | ||||||||||||||
Preferred stock, no par value: | — | — | — | — | ||||||||||
100,000 shares authorized, none outstanding | ||||||||||||||
Common stock, no par value: | 600,563 | 485,068 | 1,036,125 | 840,328 | ||||||||||
425,000,000 shares authorized | ||||||||||||||
FY 2018: 182,338,749 issued and 106,470,073 outstanding | ||||||||||||||
FY 2017: 180,992,605 issued and 105,400,629 outstanding | ||||||||||||||
FY 2020: 185,952,964 shares issued and 103,364,545 shares outstanding | ||||||||||||||
FY 2019: 184,790,626 shares issued and 103,284,401 shares outstanding | ||||||||||||||
Paid-in capital | 192,191 | 223,924 | 110,441 | 227,928 | ||||||||||
Retained earnings | 5,349,539 | 5,170,830 | 6,939,240 | 6,691,236 | ||||||||||
Treasury stock: | (3,609,697 | ) | (3,574,000 | ) | (4,974,449 | ) | (4,717,619 | ) | ||||||
FY 2018: 75,868,676 shares | ||||||||||||||
FY 2017: 75,591,976 shares | ||||||||||||||
Accumulated other comprehensive income (loss) | 20,437 | (3,029 | ) | |||||||||||
FY 2020: 82,588,419 shares | ||||||||||||||
FY 2019: 81,506,225 shares | ||||||||||||||
Accumulated other comprehensive loss | (60,651 | ) | (39,152 | ) | ||||||||||
Total shareholders’ equity | 2,553,033 | 2,302,793 | 3,050,706 | 3,002,721 | ||||||||||
$ | 6,978,801 | $ | 6,844,057 | $ | 7,661,900 | $ | 7,436,662 |
Common Stock | Paid-In Capital | Retained Earnings | Other Accumulated Comprehensive Loss | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
Balance at June 1, 2019 | 184,791 | $ | 840,328 | $ | 227,928 | $ | 6,691,236 | $ | (39,152 | ) | (81,506 | ) | $ | (4,717,619 | ) | $ | 3,002,721 | ||||||||||||
Net income | — | — | — | 250,812 | — | — | — | 250,812 | |||||||||||||||||||||
Comprehensive loss, net of tax | — | — | — | — | (23,474 | ) | — | — | (23,474 | ) | |||||||||||||||||||
Stock-based compensation | — | — | 40,395 | — | — | — | — | 40,395 | |||||||||||||||||||||
Vesting of stock-based compensation awards | 605 | 157,882 | (157,882 | ) | — | — | — | — | — | ||||||||||||||||||||
Stock options exercised, net of shares surrendered | 557 | 37,915 | — | — | — | — | — | 37,915 | |||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (1,082 | ) | (256,830 | ) | (256,830 | ) | ||||||||||||||||||
Cumulative effect of change in accounting principle | — | — | — | (2,808 | ) | 1,975 | — | — | (833 | ) | |||||||||||||||||||
Balance at August 31, 2019 | 185,953 | $ | 1,036,125 | $ | 110,441 | $ | 6,939,240 | $ | (60,651 | ) | (82,588 | ) | $ | (4,974,449 | ) | $ | 3,050,706 |
Common Stock | Paid-In Capital | Retained Earnings | Other Accumulated Comprehensive Income | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
Balance at June 1, 2018 | 182,723 | $ | 618,464 | $ | 245,211 | $ | 5,837,827 | $ | 16,343 | (76,397 | ) | $ | (3,701,319 | ) | 3,016,526 | ||||||||||||||
Cumulative effect of change in accounting principle | — | — | — | 189,192 | — | — | — | 189,192 | |||||||||||||||||||||
Net income | — | — | — | 212,515 | — | — | — | 212,515 | |||||||||||||||||||||
Comprehensive loss, net of tax | — | — | — | — | (6,482 | ) | — | — | (6,482 | ) | |||||||||||||||||||
Dividends | — | — | — | 1 | — | — | — | 1 | |||||||||||||||||||||
Stock-based compensation | — | — | 46,172 | — | — | — | — | 46,172 | |||||||||||||||||||||
Vesting of stock-based compensation awards | 739 | 151,012 | (151,012 | ) | — | — | — | — | — | ||||||||||||||||||||
Stock options exercised, net of shares surrendered | 594 | 27,512 | — | — | — | — | — | 27,512 | |||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (689 | ) | (139,468 | ) | (139,468 | ) | ||||||||||||||||||
Balance at August 31, 2018 | 184,056 | $ | 796,988 | $ | 140,371 | $ | 6,239,535 | $ | 9,861 | (77,086 | ) | $ | (3,840,787 | ) | $ | 3,345,968 |
Six Months Ended | Three Months Ended | |||||||||||||
November 30, 2017 | November 30, 2016 | August 31, 2019 | August 31, 2018 | |||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | 354,320 | $ | 278,468 | $ | 250,812 | $ | 212,515 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation | 107,578 | 79,590 | 56,726 | 52,745 | ||||||||||
Amortization of intangible assets | 31,261 | 7,460 | ||||||||||||
Amortization of intangible assets and capitalized contract costs | 35,268 | 33,550 | ||||||||||||
Stock-based compensation | 55,204 | 39,582 | 40,395 | 46,172 | ||||||||||
Gain on sale of business | (99,060 | ) | — | |||||||||||
Gain on Shred-it | — | (25,876 | ) | |||||||||||
Deferred income taxes | 42,162 | (3,833 | ) | 7,910 | 9,022 | |||||||||
Change in current assets and liabilities, net of acquisitions of businesses: | ||||||||||||||
Accounts receivable, net | (24,800 | ) | (44,920 | ) | (6,636 | ) | (15,051 | ) | ||||||
Inventories, net | 2,595 | (14,616 | ) | (1,726 | ) | (34,629 | ) | |||||||
Uniforms and other rental items in service | (33,294 | ) | (4,315 | ) | (11,305 | ) | (23,019 | ) | ||||||
Prepaid expenses and other current assets | (18,573 | ) | (1,952 | ) | ||||||||||
Prepaid expenses and other current assets and capitalized contract costs | (41,928 | ) | (46,930 | ) | ||||||||||
Accounts payable | (8,706 | ) | 15,451 | 13,357 | (329 | ) | ||||||||
Accrued compensation and related liabilities | (36,480 | ) | (18,936 | ) | (58,718 | ) | (56,186 | ) | ||||||
Accrued liabilities and other | (1,940 | ) | (4,866 | ) | (24,082 | ) | (27,556 | ) | ||||||
Income taxes, current | 8,742 | 484 | 16,828 | 12,681 | ||||||||||
Net cash provided by operating activities | 379,009 | 301,721 | 276,901 | 162,985 | ||||||||||
Cash flows from investing activities: | ||||||||||||||
Capital expenditures | (132,466 | ) | (155,173 | ) | (64,743 | ) | (64,528 | ) | ||||||
Proceeds from redemption of marketable securities | 100,259 | 172,968 | — | 1,558 | ||||||||||
Purchase of marketable securities and investments | (99,877 | ) | (118,270 | ) | ||||||||||
Proceeds from sale of business | 127,835 | — | ||||||||||||
Proceeds from sale of investment in Shred-it | — | 25,876 | ||||||||||||
Purchase of investments | (9,391 | ) | — | |||||||||||
Acquisitions of businesses, net of cash acquired | (1,099 | ) | (17,778 | ) | (3,896 | ) | (7,613 | ) | ||||||
Other, net | (870 | ) | 332 | (109 | ) | (202 | ) | |||||||
Net cash used in investing activities | (6,218 | ) | (92,045 | ) | (78,139 | ) | (70,785 | ) | ||||||
Cash flows from financing activities: | ||||||||||||||
(Payments) issuance of commercial paper, net | (50,500 | ) | 66,000 | |||||||||||
Repayment of debt | (250,000 | ) | (250,000 | ) | ||||||||||
Prepaid short-term debt financing fees | — | (13,495 | ) | |||||||||||
Issuance of commercial paper, net | 26,500 | — | ||||||||||||
Proceeds from exercise of stock-based compensation awards | 28,558 | 19,225 | 37,915 | 27,512 | ||||||||||
Repurchase of common stock | (35,697 | ) | (19,230 | ) | (256,830 | ) | (139,468 | ) | ||||||
Other, net | (1,882 | ) | (5,572 | ) | (1,192 | ) | (552 | ) | ||||||
Net cash used in financing activities | (309,521 | ) | (203,072 | ) | (193,607 | ) | (112,508 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 3,466 | (2,388 | ) | 331 | (60 | ) | ||||||||
Net increase in cash and cash equivalents | 66,736 | 4,216 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 5,486 | (20,368 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 169,266 | 139,357 | 96,645 | 138,724 | ||||||||||
Cash and cash equivalents at end of period | $ | 236,002 | $ | 143,573 | $ | 102,131 | $ | 118,356 |
(In thousands) | August 31, 2019 | May 31, 2019 | |||||
Raw materials | $ | 16,541 | $ | 17,812 | |||
Work in process | 25,618 | 28,820 | |||||
Finished goods | 294,131 | 287,957 | |||||
$ | 336,290 | $ | 334,589 |
(In thousands) | November 30, 2017 | May 31, 2017 | |||||
Raw materials | $ | 16,231 | $ | 17,528 | |||
Work in process | 23,199 | 17,951 | |||||
Finished goods | 233,400 | 242,739 | |||||
$ | 272,830 | $ | 278,218 |
Three Months Ended | |||||||||||
August 31, 2019 | August 31, 2018 | ||||||||||
(In thousands) | Revenue | % | Revenue | % | |||||||
Uniform Rental and Facility Services | $ | 1,454,527 | 80.3 | % | $ | 1,374,938 | 81.0 | % | |||
First Aid and Safety Services | 172,090 | 9.5 | % | 153,417 | 9.0 | % | |||||
Fire Protection Services | 110,126 | 6.1 | % | 98,109 | 5.8 | % | |||||
Uniform Direct Sales | 74,396 | 4.1 | % | 71,511 | 4.2 | % | |||||
Total revenue | $ | 1,811,139 | 100.0 | % | $ | 1,697,975 | 100.0 | % |
(In thousands, except lease term and discount rate) | ||||
Lease cost | ||||
Operating lease costs including short-term lease expense and variable lease costs, which were immaterial in the quarter | $ | 17,200 | ||
Operating cash flow impacts | ||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 12,342 | ||
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ | 6,828 | ||
Weighted-average remaining lease term - operating leases | 5.36 years | |||
Weighted-average discount rate - operating leases | 2.68% |
(In thousands) | ||||
2020 (remaining nine months) | $ | 35,753 | ||
2021 | 40,981 | |||
2022 | 31,877 | |||
2023 | 24,487 | |||
2024 | 15,691 | |||
Thereafter | 33,065 | |||
Total payments | 181,854 | |||
Less interest | (13,160 | ) | ||
Total present value of lease payments | $ | 168,694 |
As of November 30, 2017 | As of August 31, 2019 | |||||||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||||||||||
Cash and cash equivalents | $ | 236,002 | $ | — | $ | — | $ | 236,002 | $ | 102,131 | $ | — | $ | — | $ | 102,131 | ||||||||||||||
Marketable securities: | ||||||||||||||||||||||||||||||
Canadian treasury securities | — | 22,732 | — | 22,732 | ||||||||||||||||||||||||||
Total assets at fair value | $ | 236,002 | $ | 22,732 | $ | — | $ | 258,734 | $ | 102,131 | $ | — | $ | — | $ | 102,131 | ||||||||||||||
Long-term accrued liabilities: | ||||||||||||||||||||||||||||||
Interest rate lock agreements | $ | — | $ | 76,141 | $ | — | $ | 76,141 | ||||||||||||||||||||||
Total liabilities at fair value | $ | — | $ | 76,141 | $ | — | $ | 76,141 |
As of May 31, 2019 | |||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||
Cash and cash equivalents | $ | 96,645 | $ | — | $ | — | $ | 96,645 | |||||||
Total assets at fair value | $ | 96,645 | $ | — | $ | — | $ | 96,645 | |||||||
Long-term accrued liabilities: | |||||||||||||||
Interest rate lock agreements | $ | — | $ | 36,393 | $ | — | $ | 36,393 | |||||||
Total liabilities at fair value | $ | — | $ | 36,393 | $ | — | $ | 36,393 |
As of May 31, 2017 | |||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||
Cash and cash equivalents | $ | 169,266 | $ | — | $ | — | $ | 169,266 | |||||||
Marketable securities: | |||||||||||||||
Canadian treasury securities | — | 22,219 | — | 22,219 | |||||||||||
Total assets at fair value | $ | 169,266 | $ | 22,219 | $ | — | $ | 191,485 |
Three Months Ended | |||||||
Basic Earnings per Share from Continuing Operations (in thousands except per share data) | August 31, 2019 | August 31, 2018 | |||||
Income from continuing operations | $ | 250,812 | $ | 212,547 | |||
Less: income from continuing operations allocated to participating securities | 2,016 | 2,945 | |||||
Income from continuing operations available to common shareholders | $ | 248,796 | $ | 209,602 | |||
Basic weighted average common shares outstanding | 103,543 | 106,835 | |||||
Basic earnings per share from continuing operations | $ | 2.40 | $ | 1.96 |
Three Months Ended | Six Months Ended | ||||||||||||||
Basic Earnings per Share from Continuing Operations (in thousands except per share data) | November 30, 2017 | November 30, 2016 | November 30, 2017 | November 30, 2016 | |||||||||||
Income from continuing operations | $ | 137,737 | $ | 121,950 | $ | 298,845 | $ | 258,158 | |||||||
Less: income from continuing operations allocated to participating securities | 2,111 | 1,923 | 5,298 | 4,775 | |||||||||||
Income from continuing operations available to common shareholders | $ | 135,626 | $ | 120,027 | $ | 293,547 | $ | 253,383 | |||||||
Basic weighted average common shares outstanding | 106,340 | 104,957 | 106,039 | 104,719 | |||||||||||
Basic earnings per share from continuing operations | $ | 1.27 | $ | 1.15 | $ | 2.77 | $ | 2.42 |
Three Months Ended | |||||||
Diluted Earnings per Share from Continuing Operations (in thousands except per share data) | August 31, 2019 | August 31, 2018 | |||||
Income from continuing operations | $ | 250,812 | $ | 212,547 | |||
Less: income from continuing operations allocated to participating securities | 2,016 | 2,945 | |||||
Income from continuing operations available to common shareholders | $ | 248,796 | $ | 209,602 | |||
Basic weighted average common shares outstanding | 103,543 | 106,835 | |||||
Effect of dilutive securities – employee stock options | 3,540 | 3,813 | |||||
Diluted weighted average common shares outstanding | 107,083 | 110,648 | |||||
Diluted earnings per share from continuing operations | $ | 2.32 | $ | 1.89 |
Three Months Ended | Six Months Ended | ||||||||||||||
Diluted Earnings per Share from Continuing Operations (in thousands except per share data) | November 30, 2017 | November 30, 2016 | November 30, 2017 | November 30, 2016 | |||||||||||
Income from continuing operations | $ | 137,737 | $ | 121,950 | $ | 298,845 | $ | 258,158 | |||||||
Less: income from continuing operations allocated to participating securities | 2,111 | 1,923 | 5,298 | 4,775 | |||||||||||
Income from continuing operations available to common shareholders | $ | 135,626 | $ | 120,027 | $ | 293,547 | $ | 253,383 | |||||||
Basic weighted average common shares outstanding | 106,340 | 104,957 | 106,039 | 104,719 | |||||||||||
Effect of dilutive securities – employee stock options | 3,478 | 2,690 | 2,899 | 2,559 | |||||||||||
Diluted weighted average common shares outstanding | 109,818 | 107,647 | 108,938 | 107,278 | |||||||||||
Diluted earnings per share from continuing operations | $ | 1.24 | $ | 1.12 | $ | 2.69 | $ | 2.36 |
Goodwill (in thousands) | Uniform Rental and Facility Services | First Aid and Safety Services | All Other | Total | |||||||||||
Balance as of June 1, 2019 | $ | 2,496,402 | $ | 243,459 | $ | 102,580 | $ | 2,842,441 | |||||||
Goodwill acquired | — | 164 | 3,022 | 3,186 | |||||||||||
Foreign currency translation | 3,675 | 296 | 15 | 3,986 | |||||||||||
Balance as of August 31, 2019 | $ | 2,500,077 | $ | 243,919 | $ | 105,617 | $ | 2,849,613 |
Goodwill (in thousands) | Uniform Rental and Facility Services | First Aid and Safety Services | All Other | Total | |||||||||||
Balance as of June 1, 2017 | $ | 2,448,070 | $ | 243,112 | $ | 91,153 | $ | 2,782,335 | |||||||
Goodwill acquired (1) | 27,107 | 73 | 426 | 27,606 | |||||||||||
Foreign currency translation | 927 | 891 | 37 | 1,855 | |||||||||||
Balance as of November 30, 2017 | $ | 2,476,104 | $ | 244,076 | $ | 91,616 | $ | 2,811,796 |
Service Contracts (in thousands) | Uniform Rental and Facility Services | First Aid and Safety Services | All Other | Total | |||||||||||
Balance as of June 1, 2019 | $ | 445,016 | $ | 23,380 | $ | 26,199 | $ | 494,595 | |||||||
Service contracts acquired | — | 325 | 1,133 | 1,458 | |||||||||||
Service contracts amortization | (11,783 | ) | (970 | ) | (1,378 | ) | (14,131 | ) | |||||||
Foreign currency translation | 1,030 | 25 | — | 1,055 | |||||||||||
Balance as of August 31, 2019 | $ | 434,263 | $ | 22,760 | $ | 25,954 | $ | 482,977 |
Service Contracts (in thousands) | Uniform Rental and Facility Services | First Aid and Safety Services | All Other | Total | |||||||||||
Balance as of June 1, 2017 | $ | 529,923 | $ | 30,062 | $ | 27,003 | $ | 586,988 | |||||||
Service contracts acquired | 32 | 411 | 533 | 976 | |||||||||||
Service contracts amortization | (21,946 | ) | (1,927 | ) | (2,364 | ) | (26,237 | ) | |||||||
Foreign currency translation | 3,748 | 99 | — | 3,847 | |||||||||||
Balance as of November 30, 2017 | $ | 511,757 | $ | 28,645 | $ | 25,172 | $ | 565,574 |
As of November 30, 2017 | As of August 31, 2019 | |||||||||||||||||||||
(In thousands) | Carrying Amount | Accumulated Amortization | Net | Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||
Service contracts | $ | 917,072 | $ | 351,498 | $ | 565,574 | $ | 931,682 | $ | 448,705 | $ | 482,977 | ||||||||||
Capitalized contract costs (1) | $ | 301,854 | $ | 89,840 | $ | 212,014 | ||||||||||||||||
Noncompete and consulting agreements | $ | 40,913 | $ | 39,588 | $ | 1,325 | 42,494 | 40,740 | 1,754 | |||||||||||||
Other | 35,711 | 7,876 | 27,835 | 50,684 | 19,387 | 31,297 | ||||||||||||||||
Total other assets | $ | 76,624 | $ | 47,464 | $ | 29,160 | $ | 395,032 | $ | 149,967 | $ | 245,065 |
As of May 31, 2019 | |||||||||||
(In thousands) | Carrying Amount | Accumulated Amortization | Net | ||||||||
Service contracts | $ | 928,635 | $ | 434,040 | $ | 494,595 | |||||
Capitalized contract costs (2) | $ | 277,016 | $ | 71,062 | $ | 205,954 | |||||
Noncompete and consulting agreements | 42,308 | 40,524 | 1,784 | ||||||||
Other | 50,306 | 17,729 | 32,577 | ||||||||
Total other assets | $ | 369,630 | $ | 129,315 | $ | 240,315 |
(1) | The current portion of capitalized contract costs, included in prepaid expenses and other current assets on the consolidated condensed balance sheet as of August 31, 2019, is $71.3 million. |
(2) | The current portion of capitalized contract costs, included in prepaid expenses and other current assets on the consolidated condensed balance sheet as of May 31, 2019, is $69.6 million. |
As of May 31, 2017 | |||||||||||
(In thousands) | Carrying Amount | Accumulated Amortization | Net | ||||||||
Service contracts | $ | 911,273 | $ | 324,285 | $ | 586,988 | |||||
Noncompete and consulting agreements | $ | 40,743 | $ | 39,244 | $ | 1,499 | |||||
Other | 34,890 | 4,422 | 30,468 | ||||||||
Total other assets | $ | 75,633 | $ | 43,666 | $ | 31,967 |
Fiscal Year (In thousands) | ||||
2020 (remaining nine months) | $ | 100,846 | ||
2021 | 120,954 | |||
2022 | 109,078 | |||
2023 | 90,379 | |||
2024 | 79,144 | |||
Thereafter | 274,800 | |||
Total future amortization expense | $ | 775,201 |
(In thousands) | Interest Rate | Fiscal Year Issued | Fiscal Year Maturity | November 30, 2017 | May 31, 2017 | Interest Rate | Fiscal Year Issued | Fiscal Year Maturity | August 31, 2019 | May 31, 2019 | ||||||||||||||||||
Debt due within one year | ||||||||||||||||||||||||||||
Senior notes | 6.13 | % | 2008 | 2018 | $ | 300,000 | $ | 300,000 | ||||||||||||||||||||
Commercial paper | 1.24 | % | (1) | Various | Various | — | 50,500 | 2.36 | % | (1) | 2020 | 2020 | $ | 139,000 | $ | 112,500 | ||||||||||||
Current portion of term loan | 2.00 | % | (1) | 2017 | 2018 | — | 12,500 | |||||||||||||||||||||
Term loan | 2.88 | % | (1) | 2019 | 2020 | 200,000 | 200,000 | |||||||||||||||||||||
Debt issuance costs | — | (100 | ) | (224 | ) | (236 | ) | |||||||||||||||||||||
Total debt due within one year | $ | 300,000 | $ | 362,900 | $ | 338,776 | $ | 312,264 | ||||||||||||||||||||
Debt due after one year | ||||||||||||||||||||||||||||
Senior notes | 4.30 | % | 2012 | 2022 | $ | 250,000 | $ | 250,000 | 4.30 | % | 2012 | 2022 | $ | 250,000 | $ | 250,000 | ||||||||||||
Senior notes | 2.90 | % | 2017 | 2022 | 650,000 | 650,000 | 2.90 | % | 2017 | 2022 | 650,000 | 650,000 | ||||||||||||||||
Senior notes | 3.25 | % | 2013 | 2023 | 300,000 | 300,000 | 3.25 | % | 2013 | 2023 | 300,000 | 300,000 | ||||||||||||||||
Senior notes (2) | 2.78 | % | 2013 | 2023 | 51,576 | 51,684 | ||||||||||||||||||||||
Senior notes | 2.78 | % | 2013 | 2023 | 52,337 | 52,554 | 3.11 | % | 2015 | 2025 | 51,889 | 51,973 | ||||||||||||||||
Senior notes (3) | 3.11 | % | 2015 | 2025 | 52,476 | 52,645 | ||||||||||||||||||||||
Senior notes | 3.70 | % | 2017 | 2027 | 1,000,000 | 1,000,000 | 3.70 | % | 2017 | 2027 | 1,000,000 | 1,000,000 | ||||||||||||||||
Senior notes | 6.15 | % | 2007 | 2037 | 250,000 | 250,000 | 6.15 | % | 2007 | 2037 | 250,000 | 250,000 | ||||||||||||||||
Long-term portion of term loan | 2.00 | % | (1) | 2017 | 2022 | — | 237,500 | |||||||||||||||||||||
Debt issuance costs | (20,591 | ) | (22,075 | ) | (15,408 | ) | (16,150 | ) | ||||||||||||||||||||
Total debt due after one year | $ | 2,534,222 | $ | 2,770,624 | $ | 2,538,057 | $ | 2,537,507 |
(1) | Variable rate debt instrument. The rate presented is the variable borrowing rate at August 31, 2019. |
(2) | Cintas assumed these senior notes with the acquisition of G&K Services, Inc. (G&K) in the fourth quarter of fiscal 2017, and they were recorded at fair value. The interest rate shown above is the effective interest rate. The principal amount of these notes is $50.0 million with a stated interest rate of 3.73%. |
(3) | Cintas assumed these senior notes with the acquisition of G&K in the fourth quarter of fiscal 2017, and they were recorded at fair value. The interest rate shown above is the effective interest rate. The principal amount of these notes is $50.0 million with a stated interest rate of 3.88%. |
(In thousands) | ||||
Cash consideration for common stock | $ | 1,901,845 | (1) | |
Cash consideration for share-based awards | 62,257 | (2) | ||
Cash consideration for G&K revolving debt | 124,180 | (3) | ||
Cash consideration for transaction expenses | 24,529 | (4) | ||
Total consideration | 2,112,811 | |||
Cash acquired | (34,393 | ) | (5) | |
Net consideration transferred | $ | 2,078,418 |
Assets | |||
Accounts receivable | $ | 95,846 | |
Inventories | 30,254 | ||
Uniforms and other rental items in service | 93,659 | ||
Income taxes, current | 15,873 | ||
Prepaid expenses and other current assets | 43,235 | ||
Property and equipment | 254,035 | ||
Goodwill | 1,520,295 | ||
Service contracts | 519,000 | ||
Trade names | 17,000 | ||
Other assets | 15,585 | ||
Liabilities | |||
Accounts payable | (53,220 | ) | |
Accrued compensation and related liabilities | (9,594 | ) | |
Accrued liabilities | (115,109 | ) | |
Long-term accrued liabilities | (28,380 | ) | |
G&K senior notes | (105,359 | ) | |
Deferred income taxes | (214,702 | ) | |
Total consideration | $ | 2,078,418 |
Identifiable intangible assets | Preliminary Valuation | Amortization Period | ||
Service contracts | $ | 519,000 | 15 years | |
Trade names | 17,000 | 3 years | ||
Total | $ | 536,000 |
Three Months Ended | Six Months Ended | ||||||
(In thousands except per share data) | November 30, 2016 | November 30, 2016 | |||||
Net sales | $ | 1,515,222 | $ | 3,026,600 | |||
Net income from continuing operations | $ | 131,212 | $ | 277,625 | |||
Earnings from continuing operations per common share - diluted | $ | 1.20 | $ | 2.54 |
Three Months Ended | |||||||
(In thousands) | August 31, 2019 | August 31, 2018 | |||||
Interest cost | $ | 720 | $ | 781 | |||
Expected return on assets | (740 | ) | (721 | ) | |||
Net periodic benefit cost | $ | (20 | ) | $ | 60 |
Three Months Ended | Six Months Ended | ||||||
(In thousands) | November 30, 2017 | November 30, 2017 | |||||
Interest cost | $ | 711 | $ | 1,421 | |||
Expected return on assets | (716 | ) | (1,432 | ) | |||
Amortization of net loss | — | — | |||||
Total net periodic benefit cost | $ | (5 | ) | $ | (11 | ) |
(In thousands) | Foreign Currency | Unrealized Income on Cash Flow Hedges | Other | Total | |||||||||||
Balance at June 1, 2017 | $ | (12,726 | ) | $ | 11,382 | $ | (1,685 | ) | $ | (3,029 | ) | ||||
Other comprehensive income before reclassifications | 35,184 | — | 20 | 35,204 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (172 | ) | — | (172 | ) | |||||||||
Net current period other comprehensive income (loss) | 35,184 | (172 | ) | 20 | 35,032 | ||||||||||
Balance at August 31, 2017 | 22,458 | 11,210 | (1,665 | ) | 32,003 | ||||||||||
Other comprehensive loss before reclassifications | (11,374 | ) | — | (20 | ) | (11,394 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (172 | ) | — | (172 | ) | |||||||||
Net current period other comprehensive loss | (11,374 | ) | (172 | ) | (20 | ) | (11,566 | ) | |||||||
Balance at November 30, 2017 | $ | 11,084 | $ | 11,038 | $ | (1,685 | ) | $ | 20,437 |
(In thousands) | Foreign Currency | Unrealized Loss on Interest Rate Hedges | Other | Total | |||||||||||
Balance at June 1, 2019 | $ | (15,022 | ) | $ | (18,389 | ) | $ | (5,741 | ) | $ | (39,152 | ) | |||
Other comprehensive income (loss) before reclassifications | 6,724 | (29,903 | ) | — | (23,179 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (295 | ) | — | (295 | ) | |||||||||
Net current period other comprehensive income (loss) | 6,724 | (30,198 | ) | — | (23,474 | ) | |||||||||
Cumulative effect of change in accounting principle (1) | — | 2,058 | (83 | ) | 1,975 | ||||||||||
Balance at August 31, 2019 | $ | (8,298 | ) | $ | (46,529 | ) | $ | (5,824 | ) | $ | (60,651 | ) |
(1) | See new accounting pronouncements in Note 1 entitled Basis of Presentation for more information. |
(In thousands) | Foreign Currency | Unrealized Income on Interest Rate Hedges | Other | Total | |||||||||||
Balance at June 1, 2018 | $ | 6,550 | $ | 10,449 | $ | (656 | ) | $ | 16,343 | ||||||
Other comprehensive loss before reclassifications | (3,019 | ) | (3,168 | ) | — | (6,187 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (295 | ) | — | (295 | ) | |||||||||
Net current period other comprehensive loss | (3,019 | ) | (3,463 | ) | — | (6,482 | ) | ||||||||
Balance at August 31, 2018 | $ | 3,531 | $ | 6,986 | $ | (656 | ) | $ | 9,861 |
(In thousands) | Foreign Currency | Unrealized Loss on Cash Flow Hedges | Other | Total | |||||||||||
Balance at June 1, 2016 | $ | (2,474 | ) | $ | (20,830 | ) | $ | (1,570 | ) | $ | (24,874 | ) | |||
Other comprehensive income (loss) before reclassifications | 115 | (12,037 | ) | (1 | ) | (11,923 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 385 | — | 385 | |||||||||||
Net current period other comprehensive income (loss) | 115 | (11,652 | ) | (1 | ) | (11,538 | ) | ||||||||
Balance at August 31, 2016 | (2,359 | ) | (32,482 | ) | (1,571 | ) | (36,412 | ) | |||||||
Other comprehensive (loss) income before reclassifications | (7,650 | ) | 26,390 | 1 | 18,741 | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 385 | — | 385 | |||||||||||
Net current period other comprehensive (loss) income | (7,650 | ) | 26,775 | 1 | 19,126 | ||||||||||
Balance at November 30, 2016 | $ | (10,009 | ) | $ | (5,707 | ) | $ | (1,570 | ) | $ | (17,286 | ) |
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line in the Consolidated Condensed Statements of Income | ||||||
Three Months Ended | ||||||||
(In thousands) | August 31, 2019 | August 31, 2018 | ||||||
Amortization of interest rate locks | $ | 474 | $ | 474 | Interest expense | |||
Tax expense | (179 | ) | (179 | ) | Income taxes | |||
Amortization of interest rate locks, net of tax | $ | 295 | $ | 295 | Net income |
(In thousands) | Uniform Rental and Facility Services | First Aid and Safety Services | All Other | Corporate (1) | Total | ||||||||||||||
As of and for the three months ended August 31, 2019 | |||||||||||||||||||
Revenue | $ | 1,454,527 | $ | 172,090 | $ | 184,522 | $ | — | $ | 1,811,139 | |||||||||
Income (loss) before income taxes | $ | 269,011 | $ | 24,769 | $ | 12,366 | $ | (27,159 | ) | $ | 278,987 | ||||||||
Total assets | $ | 6,607,453 | $ | 536,652 | $ | 416,282 | $ | 101,513 | $ | 7,661,900 | |||||||||
As of and for the three months ended August 31, 2018 | |||||||||||||||||||
Revenue | $ | 1,374,938 | $ | 153,417 | $ | 169,620 | $ | — | $ | 1,697,975 | |||||||||
Income (loss) before income taxes | $ | 231,534 | $ | 21,983 | $ | 11,711 | $ | (23,808 | ) | $ | 241,420 | ||||||||
Total assets | $ | 6,298,849 | $ | 486,965 | $ | 383,034 | $ | 118,356 | $ | 7,287,204 |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line in the Consolidated Condensed Statements of Income | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
(In thousands) | November 30, 2017 | November 30, 2016 | November 30, 2017 | November 30, 2016 | ||||||||||||||
Amortization of interest rate locks | $ | 278 | $ | (615 | ) | $ | 556 | $ | (1,229 | ) | Interest expense | |||||||
Tax (expense) benefit | (106 | ) | 230 | (212 | ) | 459 | Income taxes | |||||||||||
Amortization of interest rate locks, net of tax | $ | 172 | $ | (385 | ) | $ | 344 | $ | (770 | ) | Net income |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Uniform rental and facility services | $ | — | $ | 1,158,891 | $ | 190,735 | $ | 105,394 | $ | (493 | ) | $ | 1,454,527 | ||||||||||
Other | — | 582,976 | 97 | 23,246 | (249,707 | ) | 356,612 | ||||||||||||||||
Equity in net income of affiliates | 250,812 | — | — | — | (250,812 | ) | — | ||||||||||||||||
Total revenue | 250,812 | 1,741,867 | 190,832 | 128,640 | (501,012 | ) | 1,811,139 | ||||||||||||||||
Costs and expenses (income): | |||||||||||||||||||||||
Cost of uniform rental and facility services | — | 621,881 | 111,734 | 65,595 | (30,534 | ) | 768,676 | ||||||||||||||||
Cost of other | — | 403,484 | (22,677 | ) | 17,699 | (205,185 | ) | 193,321 | |||||||||||||||
Selling and administrative expenses | — | 599,403 | (84,257 | ) | 34,454 | (6,604 | ) | 542,996 | |||||||||||||||
Operating income | 250,812 | 117,099 | 186,032 | 10,892 | (258,689 | ) | 306,146 | ||||||||||||||||
Interest (income) expense | — | (150 | ) | 1 | (14 | ) | 1 | (162 | ) | ||||||||||||||
Interest expense (income) | — | 27,360 | (53 | ) | 14 | — | 27,321 | ||||||||||||||||
Income before income taxes | 250,812 | 89,889 | 186,084 | 10,892 | (258,690 | ) | 278,987 | ||||||||||||||||
Income taxes | — | 8,201 | 16,978 | 3,021 | (25 | ) | 28,175 | ||||||||||||||||
Net income | $ | 250,812 | $ | 81,688 | $ | 169,106 | $ | 7,871 | $ | (258,665 | ) | $ | 250,812 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Uniform rental and facility services | $ | — | $ | 1,139,129 | $ | 183,163 | $ | 99,683 | $ | (47,037 | ) | $ | 1,374,938 | ||||||||||
Other | — | 491,290 | 43 | 24,332 | (192,628 | ) | 323,037 | ||||||||||||||||
Equity in net income of affiliates | 212,547 | — | — | — | (212,547 | ) | — | ||||||||||||||||
Total revenue | 212,547 | 1,630,419 | 183,206 | 124,015 | (452,212 | ) | 1,697,975 | ||||||||||||||||
Costs and expenses (income): | |||||||||||||||||||||||
Cost of uniform rental and facility services | — | 643,741 | 109,550 | 64,013 | (70,851 | ) | 746,453 | ||||||||||||||||
Cost of other | — | 341,333 | (22,029 | ) | 18,142 | (160,636 | ) | 176,810 | |||||||||||||||
Selling and administrative expenses | — | 544,910 | (64,621 | ) | 34,363 | (10,018 | ) | 504,634 | |||||||||||||||
G&K Services, Inc. integration expenses | — | 2,676 | 1,863 | 311 | — | 4,850 | |||||||||||||||||
Operating income | 212,547 | 97,759 | 158,443 | 7,186 | (210,707 | ) | 265,228 | ||||||||||||||||
Interest income | — | (209 | ) | (272 | ) | (16 | ) | 1 | (496 | ) | |||||||||||||
Interest expense (income) | — | 24,661 | (362 | ) | 5 | — | 24,304 | ||||||||||||||||
Income before income taxes | 212,547 | 73,307 | 159,077 | 7,197 | (210,708 | ) | 241,420 | ||||||||||||||||
Income taxes | — | 10,663 | 16,044 | 2,187 | (21 | ) | 28,873 | ||||||||||||||||
Income from continuing operations | 212,547 | 62,644 | 143,033 | 5,010 | (210,687 | ) | 212,547 | ||||||||||||||||
Loss from discontinued operations, net of tax | (32 | ) | (32 | ) | — | — | 32 | (32 | ) | ||||||||||||||
Net income | $ | 212,515 | $ | 62,612 | $ | 143,033 | $ | 5,010 | $ | (210,655 | ) | $ | 212,515 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Net income | $ | 250,812 | $ | 81,688 | $ | 169,106 | $ | 7,871 | $ | (258,665 | ) | $ | 250,812 | ||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | 6,724 | — | — | 6,724 | (6,724 | ) | 6,724 | ||||||||||||||||
Change in fair value of interest rate lock agreements | (29,903 | ) | (29,903 | ) | — | — | 29,903 | (29,903 | ) | ||||||||||||||
Amortization of interest rate lock agreements | (295 | ) | (295 | ) | — | — | 295 | (295 | ) | ||||||||||||||
Other comprehensive (loss) income | (23,474 | ) | (30,198 | ) | — | 6,724 | 23,474 | (23,474 | ) | ||||||||||||||
Comprehensive income | $ | 227,338 | $ | 51,490 | $ | 169,106 | $ | 14,595 | $ | (235,191 | ) | $ | 227,338 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Net income | $ | 212,515 | $ | 62,612 | $ | 143,033 | $ | 5,010 | $ | (210,655 | ) | $ | 212,515 | ||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | (3,019 | ) | — | — | (3,019 | ) | 3,019 | (3,019 | ) | ||||||||||||||
Change in fair value of interest rate lock agreements | (3,168 | ) | (3,168 | ) | — | — | 3,168 | (3,168 | ) | ||||||||||||||
Amortization of interest rate lock agreements | (295 | ) | (295 | ) | — | — | 295 | (295 | ) | ||||||||||||||
Other comprehensive loss | (6,482 | ) | (3,463 | ) | — | (3,019 | ) | 6,482 | (6,482 | ) | |||||||||||||
Comprehensive income | $ | 206,033 | $ | 59,149 | $ | 143,033 | $ | 1,991 | $ | (204,173 | ) | $ | 206,033 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 61,965 | $ | 14,788 | $ | 25,378 | $ | — | $ | 102,131 | |||||||||||
Accounts receivable, net | — | 734,268 | 113,838 | 69,429 | — | 917,535 | |||||||||||||||||
Inventories, net | — | 287,373 | 28,178 | 20,739 | — | 336,290 | |||||||||||||||||
Uniforms and other rental items in service | — | 657,277 | 91,592 | 61,534 | (14,216 | ) | 796,187 | ||||||||||||||||
Prepaid expenses and other current assets | — | 82,635 | 35,907 | 19,133 | — | 137,675 | |||||||||||||||||
Total current assets | — | 1,823,518 | 284,303 | 196,213 | (14,216 | ) | 2,289,818 | ||||||||||||||||
Property and equipment, net | — | 958,285 | 367,853 | 96,213 | — | 1,422,351 | |||||||||||||||||
Investments (1) | 321,083 | 3,588,963 | 981,713 | 1,718,870 | (6,401,642 | ) | 208,987 | ||||||||||||||||
Goodwill | — | — | 2,589,592 | 260,133 | (112 | ) | 2,849,613 | ||||||||||||||||
Service contracts, net | — | 416,583 | — | 66,394 | — | 482,977 | |||||||||||||||||
Operating lease right-of-use assets, net | — | 133,401 | 13,904 | 15,784 | — | 163,089 | |||||||||||||||||
Other assets, net | 2,264,376 | 216,985 | 5,606,035 | 1,507 | (7,843,838 | ) | 245,065 | ||||||||||||||||
$ | 2,585,459 | $ | 7,137,735 | $ | 9,843,400 | $ | 2,355,114 | $ | (14,259,808 | ) | $ | 7,661,900 | |||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable | $ | (465,247 | ) | $ | (2,099,057 | ) | $ | 2,818,307 | $ | (54,052 | ) | $ | 37,291 | $ | 237,242 | ||||||||
Accrued compensation and related liabilities | — | 59,152 | 31,311 | 8,737 | — | 99,200 | |||||||||||||||||
Accrued liabilities | — | 86,128 | 290,891 | 18,397 | — | 395,416 | |||||||||||||||||
Income taxes, current | — | 235 | 14,236 | (5,233 | ) | — | 9,238 | ||||||||||||||||
Operating lease liabilities, current | — | 34,255 | 4,320 | 4,435 | — | 43,010 | |||||||||||||||||
Debt due within one year | — | 338,776 | — | — | — | 338,776 | |||||||||||||||||
Total current liabilities | (465,247 | ) | (1,580,511 | ) | 3,159,065 | (27,716 | ) | 37,291 | 1,122,882 | ||||||||||||||
Long-term liabilities: | |||||||||||||||||||||||
Debt due after one year | — | 2,538,057 | — | — | — | 2,538,057 | |||||||||||||||||
Deferred income taxes | — | 306,142 | 99,774 | 30,839 | — | 436,755 | |||||||||||||||||
Operating lease liabilities | — | 103,847 | 10,093 | 11,744 | — | 125,684 | |||||||||||||||||
Accrued liabilities | — | 156,466 | 214,977 | 16,373 | — | 387,816 | |||||||||||||||||
Total long-term liabilities | — | 3,104,512 | 324,844 | 58,956 | — | 3,488,312 | |||||||||||||||||
Total shareholders’ equity | 3,050,706 | 5,613,734 | 6,359,491 | 2,323,874 | (14,297,099 | ) | 3,050,706 | ||||||||||||||||
$ | 2,585,459 | $ | 7,137,735 | $ | 9,843,400 | $ | 2,355,114 | $ | (14,259,808 | ) | $ | 7,661,900 |
(1) | Investments include inter-company investment activity. Corp 2 and Subsidiary Guarantors hold $19.6 million and $189.4 million, respectively, of the $209.0 millionconsolidated net investments. |
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. |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 250,812 | $ | 81,688 | $ | 169,106 | $ | 7,871 | $ | (258,665 | ) | $ | 250,812 | ||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||||||||||||||||||||||
Depreciation | — | 37,056 | 16,032 | 3,638 | — | 56,726 | |||||||||||||||||
Amortization of intangible assets and capitalized contract costs | — | 31,949 | 1,279 | 2,040 | — | 35,268 | |||||||||||||||||
Stock-based compensation | 40,395 | — | — | — | — | 40,395 | |||||||||||||||||
Deferred income taxes | — | 8,652 | (382 | ) | (360 | ) | — | 7,910 | |||||||||||||||
Changes in current assets and liabilities, net of acquisitions of businesses: | |||||||||||||||||||||||
Accounts receivable, net | — | (14,317 | ) | 7,965 | (284 | ) | — | (6,636 | ) | ||||||||||||||
Inventories, net | — | (8,686 | ) | 7,359 | (399 | ) | — | (1,726 | ) | ||||||||||||||
Uniforms and other rental items in service | — | (11,416 | ) | (1,135 | ) | (722 | ) | 1,968 | (11,305 | ) | |||||||||||||
Prepaid expenses and other current assets and capitalized contract costs | — | (26,355 | ) | (15,462 | ) | (111 | ) | — | (41,928 | ) | |||||||||||||
Accounts payable | — | (8,103 | ) | 28,923 | (7,322 | ) | (141 | ) | 13,357 | ||||||||||||||
Accrued compensation and related liabilities | — | (58,252 | ) | 2,120 | (2,586 | ) | — | (58,718 | ) | ||||||||||||||
Accrued liabilities and other | — | 5,833 | (27,074 | ) | (2,841 | ) | — | (24,082 | ) | ||||||||||||||
Income taxes, current | — | (9,493 | ) | 25,974 | 347 | — | 16,828 | ||||||||||||||||
Net cash provided by (used in) operating activities | 291,207 | 28,556 | 214,705 | (729 | ) | (256,838 | ) | 276,901 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (46,605 | ) | (14,916 | ) | (3,222 | ) | — | (64,743 | ) | |||||||||||||
Redemptions (purchases) of investments | — | 271 | (9,662 | ) | — | — | (9,391 | ) | |||||||||||||||
Acquisitions of businesses, net of cash acquired | — | (3,896 | ) | — | — | — | (3,896 | ) | |||||||||||||||
Other, net | (72,292 | ) | 3,368 | (188,490 | ) | 467 | 256,838 | (109 | ) | ||||||||||||||
Net cash used in investing activities | (72,292 | ) | (46,862 | ) | (213,068 | ) | (2,755 | ) | 256,838 | (78,139 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Issuance of commercial paper, net | — | 26,500 | — | — | — | 26,500 | |||||||||||||||||
Proceeds from exercise of stock-based compensation awards | 37,915 | — | — | — | — | 37,915 | |||||||||||||||||
Repurchase of common stock | (256,830 | ) | — | — | — | — | (256,830 | ) | |||||||||||||||
Other, net | — | (1,192 | ) | — | — | — | (1,192 | ) | |||||||||||||||
Net cash (used in) provided by financing activities | (218,915 | ) | 25,308 | — | — | — | (193,607 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | 331 | — | 331 | |||||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 7,002 | 1,637 | (3,153 | ) | — | 5,486 | ||||||||||||||||
Cash and cash equivalents at beginning of period | — | 54,963 | 13,151 | 28,531 | — | 96,645 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 61,965 | $ | 14,788 | $ | 25,378 | $ | — | $ | 102,131 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 212,515 | $ | 62,612 | $ | 143,033 | $ | 5,010 | $ | (210,655 | ) | $ | 212,515 | ||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||||||||||||||||||||||
Depreciation | — | 33,866 | 15,427 | 3,452 | — | 52,745 | |||||||||||||||||
Amortization of intangible assets and capitalized contract costs | — | 30,156 | 1,278 | 2,116 | — | 33,550 | |||||||||||||||||
Stock-based compensation | 46,172 | — | — | — | — | 46,172 | |||||||||||||||||
Deferred income taxes | — | 5,388 | 2,122 | 1,512 | — | 9,022 | |||||||||||||||||
Changes in current assets and liabilities, net of acquisitions of businesses: | |||||||||||||||||||||||
Accounts receivable, net | — | (12,891 | ) | 3,381 | (5,541 | ) | — | (15,051 | ) | ||||||||||||||
Inventories, net | — | (37,207 | ) | 2,700 | 660 | (782 | ) | (34,629 | ) | ||||||||||||||
Uniforms and other rental items in service | — | (10,800 | ) | (7,904 | ) | (2,936 | ) | (1,379 | ) | (23,019 | ) | ||||||||||||
Prepaid expenses and other current assets and capitalized contract costs | — | (25,060 | ) | (21,838 | ) | (32 | ) | — | (46,930 | ) | |||||||||||||
Accounts payable | — | 41,784 | (37,657 | ) | (4,758 | ) | 302 | (329 | ) | ||||||||||||||
Accrued compensation and related liabilities | — | (41,910 | ) | (10,982 | ) | (3,294 | ) | — | (56,186 | ) | |||||||||||||
Accrued liabilities and other | — | 2,305 | (26,295 | ) | (3,566 | ) | — | (27,556 | ) | ||||||||||||||
Income taxes, current | — | 5,022 | 8,474 | (815 | ) | — | 12,681 | ||||||||||||||||
Net cash provided by (used in) operating activities | 258,687 | 53,265 | 71,739 | (8,192 | ) | (212,514 | ) | 162,985 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (43,966 | ) | (17,979 | ) | (2,583 | ) | — | (64,528 | ) | |||||||||||||
Proceeds from redemption of marketable securities | — | 1,554 | 4 | — | — | 1,558 | |||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | (7,613 | ) | — | — | — | (7,613 | ) | |||||||||||||||
Other, net | (146,731 | ) | (4,048 | ) | (65,509 | ) | 2,582 | 213,504 | (202 | ) | |||||||||||||
Net cash used in investing activities | (146,731 | ) | (54,073 | ) | (83,484 | ) | (1 | ) | 213,504 | (70,785 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from exercise of stock-based compensation awards | 27,512 | — | — | — | — | 27,512 | |||||||||||||||||
Repurchase of common stock | (139,468 | ) | — | — | — | — | (139,468 | ) | |||||||||||||||
Other, net | — | 2,909 | — | (2,471 | ) | (990 | ) | (552 | ) | ||||||||||||||
Net cash (used in) provided by financing activities | (111,956 | ) | 2,909 | — | (2,471 | ) | (990 | ) | (112,508 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (60 | ) | — | (60 | ) | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 2,101 | (11,745 | ) | (10,724 | ) | — | (20,368 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 44,499 | 60,310 | 33,915 | — | 138,724 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 46,600 | $ | 48,565 | $ | 23,191 | $ | — | $ | 118,356 |
(In thousands) | Uniform Rental and Facility Services | First Aid and Safety Services | All Other | Corporate (1) | Total | ||||||||||||||
For the three months ended November 30, 2017 | |||||||||||||||||||
Revenue | $ | 1,308,038 | $ | 139,090 | $ | 159,313 | $ | — | $ | 1,606,441 | |||||||||
Income (loss) before income taxes | $ | 203,814 | $ | 17,975 | $ | 13,422 | $ | (28,838 | ) | $ | 206,373 | ||||||||
For the three months ended November 30, 2016 | |||||||||||||||||||
Revenue | $ | 1,000,015 | $ | 124,797 | $ | 146,265 | $ | — | $ | 1,271,077 | |||||||||
Income (loss) before income taxes | $ | 176,947 | $ | 14,779 | $ | 8,730 | $ | (13,236 | ) | $ | 187,220 | ||||||||
As of and for the six months ended November 30, 2017 | |||||||||||||||||||
Revenue | $ | 2,619,822 | $ | 279,672 | $ | 318,450 | $ | — | $ | 3,217,944 | |||||||||
Income (loss) before income taxes | $ | 422,724 | $ | 37,386 | $ | 24,200 | $ | (58,858 | ) | $ | 425,452 | ||||||||
Total assets | $ | 5,899,010 | $ | 467,902 | $ | 353,155 | $ | 258,734 | $ | 6,978,801 | |||||||||
As of and for the six months ended November 30, 2016 | |||||||||||||||||||
Revenue | $ | 1,994,297 | $ | 249,636 | $ | 293,794 | $ | — | $ | 2,537,727 | |||||||||
Income (loss) before income taxes | $ | 361,735 | $ | 26,290 | $ | 16,368 | $ | (27,343 | ) | $ | 377,050 | ||||||||
Total assets | $ | 3,262,448 | $ | 443,151 | $ | 326,039 | $ | 182,941 | $ | 4,214,579 |
Three Months Ended | Six Months Ended | ||||||||||||||
(In thousands) | November 30, 2017 | November 30, 2016 (1) | November 30, 2017 | November 30, 2016 (1) | |||||||||||
Revenue | $ | — | $ | 25,845 | $ | 10,773 | $ | 53,326 | |||||||
(Loss) income before income taxes | (43 | ) | 2,402 | (2,482 | ) | 5,426 | |||||||||
Income tax benefit (expense) | 18 | (898 | ) | 920 | (2,039 | ) | |||||||||
(Loss) gain on sale of business | (1,209 | ) | — | 99,060 | — | ||||||||||
Gain on Shred-it | — | 25,876 | — | 25,876 | |||||||||||
Income tax benefit (expense) on net gain | 606 | (8,953 | ) | (42,023 | ) | (8,953 | ) | ||||||||
Net (loss) income from discontinued operations | $ | (628 | ) | $ | 18,427 | $ | 55,475 | $ | 20,310 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Uniform rental and facility services | $ | — | $ | 1,086,667 | $ | 170,320 | $ | 100,933 | $ | (49,882 | ) | $ | 1,308,038 | ||||||||||
Other | — | 435,539 | (313 | ) | 21,982 | (158,805 | ) | 298,403 | |||||||||||||||
Equity in net income of affiliates | 137,737 | — | — | — | (137,737 | ) | — | ||||||||||||||||
137,737 | 1,522,206 | 170,007 | 122,915 | (346,424 | ) | 1,606,441 | |||||||||||||||||
Costs and expenses (income): | |||||||||||||||||||||||
Cost of uniform rental and facility services | — | 628,123 | 105,954 | 65,220 | (75,337 | ) | 723,960 | ||||||||||||||||
Cost of other | — | 302,065 | (25,046 | ) | 15,438 | (126,345 | ) | 166,112 | |||||||||||||||
Selling and administrative expenses | — | 528,369 | (85,417 | ) | 31,211 | (6,079 | ) | 468,084 | |||||||||||||||
G&K Services, Inc. transaction and integration expenses | — | 4,192 | 8,319 | 563 | — | 13,074 | |||||||||||||||||
Operating income | 137,737 | 59,457 | 166,197 | 10,483 | (138,663 | ) | 235,211 | ||||||||||||||||
Interest income | — | (45 | ) | (59 | ) | (187 | ) | — | (291 | ) | |||||||||||||
Interest expense (income) | — | 29,444 | (313 | ) | (2 | ) | — | 29,129 | |||||||||||||||
Income before income taxes | 137,737 | 30,058 | 166,569 | 10,672 | (138,663 | ) | 206,373 | ||||||||||||||||
Income taxes | — | 11,449 | 54,414 | 2,798 | (25 | ) | 68,636 | ||||||||||||||||
Income from continuing operations | 137,737 | 18,609 | 112,155 | 7,874 | (138,638 | ) | 137,737 | ||||||||||||||||
Loss from discontinued operations, net of tax | (628 | ) | (628 | ) | — | — | 628 | (628 | ) | ||||||||||||||
Net income | $ | 137,109 | $ | 17,981 | $ | 112,155 | $ | 7,874 | $ | (138,010 | ) | $ | 137,109 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Uniform rental and facility services | $ | — | $ | 835,892 | $ | 149,886 | $ | 57,610 | $ | (43,373 | ) | $ | 1,000,015 | ||||||||||
Other | — | 390,963 | 633 | 18,162 | (138,696 | ) | 271,062 | ||||||||||||||||
Equity in net income of affiliates | 121,950 | — | — | — | (121,950 | ) | — | ||||||||||||||||
121,950 | 1,226,855 | 150,519 | 75,772 | (304,019 | ) | 1,271,077 | |||||||||||||||||
Costs and expenses (income): | |||||||||||||||||||||||
Cost of uniform rental and facility services | — | 483,399 | 94,323 | 37,603 | (63,827 | ) | 551,498 | ||||||||||||||||
Cost of other | — | 271,812 | (19,549 | ) | 13,636 | (111,538 | ) | 154,361 | |||||||||||||||
Selling and administrative expenses | — | 398,592 | (48,256 | ) | 18,703 | (7,624 | ) | 361,415 | |||||||||||||||
G&K Services, Inc. transaction and integration expenses | — | — | 3,347 | — | — | 3,347 | |||||||||||||||||
Operating income | 121,950 | 73,052 | 120,654 | 5,830 | (121,030 | ) | 200,456 | ||||||||||||||||
Interest income | — | — | (7 | ) | (25 | ) | 1 | (31 | ) | ||||||||||||||
Interest expense (income) | — | 14,528 | (1,176 | ) | (85 | ) | — | 13,267 | |||||||||||||||
Income before income taxes | 121,950 | 58,524 | 121,837 | 5,940 | (121,031 | ) | 187,220 | ||||||||||||||||
Income taxes | — | 20,635 | 42,652 | 2,011 | (28 | ) | 65,270 | ||||||||||||||||
Income from continuing operations | 121,950 | 37,889 | 79,185 | 3,929 | (121,003 | ) | 121,950 | ||||||||||||||||
Income from discontinued operations, net of tax | 18,427 | 17,115 | — | 1,941 | (19,056 | ) | 18,427 | ||||||||||||||||
Net income | $ | 140,377 | $ | 55,004 | $ | 79,185 | $ | 5,870 | $ | (140,059 | ) | $ | 140,377 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Uniform rental and facility services | $ | — | $ | 2,186,536 | $ | 335,215 | $ | 197,528 | $ | (99,457 | ) | $ | 2,619,822 | ||||||||||
Other | — | 862,841 | (6 | ) | 42,290 | (307,003 | ) | 598,122 | |||||||||||||||
Equity in net income of affiliates | 298,845 | — | — | — | (298,845 | ) | — | ||||||||||||||||
298,845 | 3,049,377 | 335,209 | 239,818 | (705,305 | ) | 3,217,944 | |||||||||||||||||
Costs and expenses (income): | |||||||||||||||||||||||
Cost of uniform rental and facility services | — | 1,250,271 | 204,973 | 125,737 | (150,158 | ) | 1,430,823 | ||||||||||||||||
Cost of other | — | 590,984 | (44,715 | ) | 30,173 | (245,043 | ) | 331,399 | |||||||||||||||
Selling and administrative expenses | — | 1,039,324 | (132,955 | ) | 61,117 | (13,119 | ) | 954,367 | |||||||||||||||
G&K Services, Inc. transaction and integration expenses | — | 5,713 | 10,754 | 578 | — | 17,045 | |||||||||||||||||
Operating income | 298,845 | 163,085 | 297,152 | 22,213 | (296,985 | ) | 484,310 | ||||||||||||||||
Interest income | — | (76 | ) | (158 | ) | (354 | ) | — | (588 | ) | |||||||||||||
Interest expense (income) | — | 60,005 | (452 | ) | (107 | ) | — | 59,446 | |||||||||||||||
Income before income taxes | 298,845 | 103,156 | 297,762 | 22,674 | (296,985 | ) | 425,452 | ||||||||||||||||
Income taxes | — | 31,019 | 89,537 | 6,095 | (44 | ) | 126,607 | ||||||||||||||||
Income from continuing operations | 298,845 | 72,137 | 208,225 | 16,579 | (296,941 | ) | 298,845 | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | 55,475 | 64,374 | (8,899 | ) | — | (55,475 | ) | 55,475 | |||||||||||||||
Net income | $ | 354,320 | $ | 136,511 | $ | 199,326 | $ | 16,579 | $ | (352,416 | ) | $ | 354,320 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Uniform rental and facility services | $ | — | $ | 1,667,852 | $ | 299,034 | $ | 115,273 | $ | (87,862 | ) | $ | 1,994,297 | ||||||||||
Other | — | 779,045 | 1,601 | 37,037 | (274,253 | ) | 543,430 | ||||||||||||||||
Equity in net income of affiliates | 258,158 | — | — | — | (258,158 | ) | — | ||||||||||||||||
258,158 | 2,446,897 | 300,635 | 152,310 | (620,273 | ) | 2,537,727 | |||||||||||||||||
Costs and expenses (income): | |||||||||||||||||||||||
Cost of uniform rental and facility services | — | 958,620 | 184,995 | 74,717 | (129,737 | ) | 1,088,595 | ||||||||||||||||
Cost of other | — | 535,538 | (34,480 | ) | 27,464 | (221,035 | ) | 307,487 | |||||||||||||||
Selling and administrative expenses | — | 806,203 | (98,990 | ) | 38,968 | (15,063 | ) | 731,118 | |||||||||||||||
G&K Services, Inc. transaction and integration expenses | — | — | 6,134 | — | — | 6,134 | |||||||||||||||||
Operating income | 258,158 | 146,536 | 242,976 | 11,161 | (254,438 | ) | 404,393 | ||||||||||||||||
Interest income | — | — | (24 | ) | (73 | ) | 1 | (96 | ) | ||||||||||||||
Interest expense (income) | — | 29,355 | (1,878 | ) | (38 | ) | — | 27,439 | |||||||||||||||
Income before income taxes | 258,158 | 117,181 | 244,878 | 11,272 | (254,439 | ) | 377,050 | ||||||||||||||||
Income taxes | — | 37,304 | 78,178 | 3,464 | (54 | ) | 118,892 | ||||||||||||||||
Income from continuing operations | 258,158 | 79,877 | 166,700 | 7,808 | (254,385 | ) | 258,158 | ||||||||||||||||
Income from discontinued operations, net of tax | 20,310 | 18,998 | — | 1,941 | (20,939 | ) | 20,310 | ||||||||||||||||
Net income | $ | 278,468 | $ | 98,875 | $ | 166,700 | $ | 9,749 | $ | (275,324 | ) | $ | 278,468 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Net income | $ | 137,109 | $ | 17,981 | $ | 112,155 | $ | 7,874 | $ | (138,010 | ) | $ | 137,109 | ||||||||||
Other comprehensive loss, net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | (11,374 | ) | — | — | (11,374 | ) | 11,374 | (11,374 | ) | ||||||||||||||
Amortization of interest rate lock agreements | (172 | ) | (172 | ) | — | — | 172 | (172 | ) | ||||||||||||||
Change in fair value of available-for-sale securities | (20 | ) | — | — | (20 | ) | 20 | (20 | ) | ||||||||||||||
Other comprehensive loss | (11,566 | ) | (172 | ) | — | (11,394 | ) | 11,566 | (11,566 | ) | |||||||||||||
Comprehensive income (loss) | $ | 125,543 | $ | 17,809 | $ | 112,155 | $ | (3,520 | ) | $ | (126,444 | ) | $ | 125,543 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Net income | $ | 140,377 | $ | 55,004 | $ | 79,185 | $ | 5,870 | $ | (140,059 | ) | $ | 140,377 | ||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | (7,650 | ) | — | — | (7,650 | ) | 7,650 | (7,650 | ) | ||||||||||||||
Change in fair value of cash flow hedges | 26,390 | 26,390 | — | — | (26,390 | ) | 26,390 | ||||||||||||||||
Amortization of interest rate lock agreements | 385 | 385 | — | — | (385 | ) | 385 | ||||||||||||||||
Change in fair value of available-for-sale securities | 1 | — | — | 1 | (1 | ) | 1 | ||||||||||||||||
Other comprehensive income (loss) | 19,126 | 26,775 | — | (7,649 | ) | (19,126 | ) | 19,126 | |||||||||||||||
Comprehensive income (loss) | $ | 159,503 | $ | 81,779 | $ | 79,185 | $ | (1,779 | ) | $ | (159,185 | ) | $ | 159,503 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Net income | $ | 354,320 | $ | 136,511 | $ | 199,326 | $ | 16,579 | $ | (352,416 | ) | $ | 354,320 | ||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | 23,810 | — | — | 23,810 | (23,810 | ) | 23,810 | ||||||||||||||||
Amortization of interest rate lock agreements | (344 | ) | (344 | ) | — | — | 344 | (344 | ) | ||||||||||||||
Other comprehensive income (loss) | 23,466 | (344 | ) | — | 23,810 | (23,466 | ) | 23,466 | |||||||||||||||
Comprehensive income | $ | 377,786 | $ | 136,167 | $ | 199,326 | $ | 40,389 | $ | (375,882 | ) | $ | 377,786 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Net income | $ | 278,468 | $ | 98,875 | $ | 166,700 | $ | 9,749 | $ | (275,324 | ) | $ | 278,468 | ||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | (7,535 | ) | — | — | (7,535 | ) | 7,535 | (7,535 | ) | ||||||||||||||
Change in fair value of cash flow hedges | 14,353 | 14,353 | — | — | (14,353 | ) | 14,353 | ||||||||||||||||
Amortization of interest rate lock agreements | 770 | 770 | — | — | (770 | ) | 770 | ||||||||||||||||
Other comprehensive income (loss) | 7,588 | 15,123 | — | (7,535 | ) | (7,588 | ) | 7,588 | |||||||||||||||
Comprehensive income | $ | 286,056 | $ | 113,998 | $ | 166,700 | $ | 2,214 | $ | (282,912 | ) | $ | 286,056 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 42,126 | $ | 83,515 | $ | 110,361 | $ | — | $ | 236,002 | |||||||||||
Marketable securities | — | — | — | 22,732 | — | 22,732 | |||||||||||||||||
Accounts receivable, net | — | 586,992 | 117,106 | 59,457 | — | 763,555 | |||||||||||||||||
Inventories, net | — | 224,217 | 31,994 | 16,620 | (1 | ) | 272,830 | ||||||||||||||||
Uniforms and other rental items in service | — | 562,724 | 81,459 | 49,025 | (18,636 | ) | 674,572 | ||||||||||||||||
Income taxes, current | — | (16,790 | ) | 47,940 | 4,550 | — | 35,700 | ||||||||||||||||
Prepaid expenses and other current assets | — | 7,837 | 29,222 | 999 | — | 38,058 | |||||||||||||||||
Total current assets | — | 1,407,106 | 391,236 | 263,744 | (18,637 | ) | 2,043,449 | ||||||||||||||||
Property and equipment, net | — | 875,883 | 366,041 | 111,235 | — | 1,353,159 | |||||||||||||||||
Investments (1) | 321,083 | 3,598,267 | 947,722 | 1,713,070 | (6,404,479 | ) | 175,663 | ||||||||||||||||
Goodwill | — | — | 2,770,504 | 41,403 | (111 | ) | 2,811,796 | ||||||||||||||||
Service contracts, net | — | 483,985 | — | 81,589 | — | 565,574 | |||||||||||||||||
Other assets, net | 1,766,703 | 557 | 3,489,627 | 13,866 | (5,241,593 | ) | 29,160 | ||||||||||||||||
$ | 2,087,786 | $ | 6,365,798 | $ | 7,965,130 | $ | 2,224,907 | $ | (11,664,820 | ) | $ | 6,978,801 | |||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable | $ | (465,247 | ) | $ | (1,458,658 | ) | $ | 2,162,751 | $ | (113,813 | ) | $ | 37,948 | $ | 162,981 | ||||||||
Accrued compensation and related liabilities | — | 101,379 | 6,141 | 5,910 | — | 113,430 | |||||||||||||||||
Accrued liabilities | — | 187,828 | 368,784 | 21,348 | — | 577,960 | |||||||||||||||||
Debt due within one year | — | 300,000 | — | — | — | 300,000 | |||||||||||||||||
Total current liabilities | (465,247 | ) | (869,451 | ) | 2,537,676 | (86,555 | ) | 37,948 | 1,154,371 | ||||||||||||||
Long-term liabilities: | |||||||||||||||||||||||
Debt due after one year | — | 2,533,832 | — | 390 | — | 2,534,222 | |||||||||||||||||
Deferred income taxes | — | — | 492,999 | 46,044 | — | 539,043 | |||||||||||||||||
Accrued liabilities | — | 32,998 | 163,863 | 1,271 | — | 198,132 | |||||||||||||||||
Total long-term liabilities | — | 2,566,830 | 656,862 | 47,705 | — | 3,271,397 | |||||||||||||||||
Total shareholders’ equity | 2,553,033 | 4,668,419 | 4,770,592 | 2,263,757 | (11,702,768 | ) | 2,553,033 | ||||||||||||||||
$ | 2,087,786 | $ | 6,365,798 | $ | 7,965,130 | $ | 2,224,907 | $ | (11,664,820 | ) | $ | 6,978,801 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 48,658 | $ | 17,302 | $ | 103,306 | $ | — | $ | 169,266 | |||||||||||
Marketable securities | — | — | — | 22,219 | — | 22,219 | |||||||||||||||||
Accounts receivable, net | — | 543,769 | 137,881 | 54,358 | — | 736,008 | |||||||||||||||||
Inventories, net | — | 243,677 | 21,466 | 14,461 | (1,386 | ) | 278,218 | ||||||||||||||||
Uniforms and other rental items in service | — | 531,295 | 78,012 | 45,388 | (18,993 | ) | 635,702 | ||||||||||||||||
Income taxes, current | — | 16,173 | 25,138 | 3,009 | — | 44,320 | |||||||||||||||||
Prepaid expenses and other current assets | — | 13,234 | 16,188 | 710 | — | 30,132 | |||||||||||||||||
Assets held for sale | — | 23,095 | 15,518 | — | — | 38,613 | |||||||||||||||||
Total current assets | — | 1,419,901 | 311,505 | 243,451 | (20,379 | ) | 1,954,478 | ||||||||||||||||
Property and equipment, net | — | 851,018 | 364,724 | 107,759 | — | 1,323,501 | |||||||||||||||||
Investments (1) | 321,083 | 3,605,457 | 929,657 | 1,711,070 | (6,402,479 | ) | 164,788 | ||||||||||||||||
Goodwill | — | — | 2,742,898 | 39,549 | (112 | ) | 2,782,335 | ||||||||||||||||
Service contracts, net | — | 505,698 | — | 81,290 | — | 586,988 | |||||||||||||||||
Other assets, net | 1,516,463 | 14,705 | 3,489,653 | 11,983 | (5,000,837 | ) | 31,967 | ||||||||||||||||
$ | 1,837,546 | $ | 6,396,779 | $ | 7,838,437 | $ | 2,195,102 | $ | (11,423,807 | ) | $ | 6,844,057 | |||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable | $ | (465,247 | ) | $ | (1,596,731 | ) | $ | 2,292,388 | $ | (91,467 | ) | $ | 38,108 | $ | 177,051 | ||||||||
Accrued compensation and related liabilities | — | 94,505 | 42,866 | 12,264 | — | 149,635 | |||||||||||||||||
Accrued liabilities | — | 191,819 | 219,303 | 18,687 | — | 429,809 | |||||||||||||||||
Debt due within one year | — | 362,900 | — | — | — | 362,900 | |||||||||||||||||
Liabilities held for sale | — | 11,457 | — | — | — | 11,457 | |||||||||||||||||
Total current liabilities | (465,247 | ) | (936,050 | ) | 2,554,557 | (60,516 | ) | 38,108 | 1,130,852 | ||||||||||||||
Long-term liabilities: | |||||||||||||||||||||||
Debt due after one year | — | 2,770,234 | — | 390 | — | 2,770,624 | |||||||||||||||||
Deferred income taxes | — | — | 436,613 | 32,715 | — | 469,328 | |||||||||||||||||
Accrued liabilities | — | 28,384 | 140,923 | 1,153 | — | 170,460 | |||||||||||||||||
Total long-term liabilities | — | 2,798,618 | 577,536 | 34,258 | — | 3,410,412 | |||||||||||||||||
Total shareholders’ equity | 2,302,793 | 4,534,211 | 4,706,344 | 2,221,360 | (11,461,915 | ) | 2,302,793 | ||||||||||||||||
$ | 1,837,546 | $ | 6,396,779 | $ | 7,838,437 | $ | 2,195,102 | $ | (11,423,807 | ) | $ | 6,844,057 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 354,320 | $ | 136,511 | $ | 199,326 | $ | 16,579 | $ | (352,416 | ) | $ | 354,320 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||||||||
Depreciation | — | 65,942 | 34,789 | 6,847 | — | 107,578 | |||||||||||||||||
Amortization of intangible assets | — | 24,522 | 2,547 | 4,192 | — | 31,261 | |||||||||||||||||
Stock-based compensation | 55,204 | — | — | — | — | 55,204 | |||||||||||||||||
Gain on sale of business | — | (114,581 | ) | 15,521 | — | — | (99,060 | ) | |||||||||||||||
Deferred income taxes | — | — | 40,555 | 1,607 | — | 42,162 | |||||||||||||||||
Changes in current assets and liabilities, net of acquisitions of businesses: | |||||||||||||||||||||||
Accounts receivable, net | — | (42,881 | ) | 20,790 | (2,709 | ) | — | (24,800 | ) | ||||||||||||||
Inventories, net | — | 17,728 | (13,863 | ) | 115 | (1,385 | ) | 2,595 | |||||||||||||||
Uniforms and other rental items in service | — | (29,520 | ) | (112 | ) | (3,305 | ) | (357 | ) | (33,294 | ) | ||||||||||||
Prepaid expenses and other current assets | — | (5,428 | ) | (13,609 | ) | 464 | — | (18,573 | ) | ||||||||||||||
Accounts payable | — | 155,461 | (153,831 | ) | (10,176 | ) | (160 | ) | (8,706 | ) | |||||||||||||
Accrued compensation and related liabilities | — | 6,341 | (39,311 | ) | (3,510 | ) | — | (36,480 | ) | ||||||||||||||
Accrued liabilities and other | — | (26,847 | ) | 26,373 | (1,466 | ) | — | (1,940 | ) | ||||||||||||||
Income taxes, current | — | 32,963 | (22,794 | ) | (1,427 | ) | — | 8,742 | |||||||||||||||
Net cash provided by operating activities | 409,524 | 220,211 | 96,381 | 7,211 | (354,318 | ) | 379,009 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (90,497 | ) | (36,875 | ) | (5,094 | ) | — | (132,466 | ) | |||||||||||||
Proceeds from redemption of marketable securities and investments | — | 12,400 | — | 87,859 | — | 100,259 | |||||||||||||||||
Purchase of marketable securities and investments | — | 5,510 | (20,064 | ) | (87,323 | ) | 2,000 | (99,877 | ) | ||||||||||||||
Proceeds from sale of business | — | 127,835 | — | — | — | 127,835 | |||||||||||||||||
Acquisitions of businesses | — | (1,099 | ) | — | — | — | (1,099 | ) | |||||||||||||||
Other, net | (402,385 | ) | 21,470 | 26,771 | 956 | 352,318 | (870 | ) | |||||||||||||||
Net cash (used in) provided by investing activities | (402,385 | ) | 75,619 | (30,168 | ) | (3,602 | ) | 354,318 | (6,218 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Payments of commercial paper, net | — | (50,500 | ) | — | — | — | (50,500 | ) | |||||||||||||||
Repayment of debt | — | (250,000 | ) | — | — | — | (250,000 | ) | |||||||||||||||
Proceeds from exercise of stock-based compensation awards | 28,558 | — | — | — | — | 28,558 | |||||||||||||||||
Repurchase of common stock | (35,697 | ) | — | — | — | — | (35,697 | ) | |||||||||||||||
Other, net | — | (1,862 | ) | — | (20 | ) | — | (1,882 | ) | ||||||||||||||
Net cash used in financing activities | (7,139 | ) | (302,362 | ) | — | (20 | ) | — | (309,521 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | 3,466 | — | 3,466 | |||||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (6,532 | ) | 66,213 | 7,055 | — | 66,736 | ||||||||||||||||
Cash and cash equivalents at beginning of period | — | 48,658 | 17,302 | 103,306 | — | 169,266 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 42,126 | $ | 83,515 | $ | 110,361 | $ | — | $ | 236,002 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 278,468 | $ | 98,875 | $ | 166,700 | $ | 9,749 | $ | (275,324 | ) | $ | 278,468 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||||||||
Depreciation | — | 52,259 | 22,412 | 4,919 | — | 79,590 | |||||||||||||||||
Amortization of intangible assets | — | 6,847 | 175 | 438 | — | 7,460 | |||||||||||||||||
Stock-based compensation | 39,582 | — | — | — | — | 39,582 | |||||||||||||||||
Gain on Shred-it | — | (23,935 | ) | — | (1,941 | ) | — | (25,876 | ) | ||||||||||||||
Deferred income taxes | — | (9,578 | ) | 5,395 | 350 | — | (3,833 | ) | |||||||||||||||
Changes in current assets and liabilities, net of acquisitions of businesses: | |||||||||||||||||||||||
Accounts receivable, net | — | (36,939 | ) | (6,813 | ) | (1,168 | ) | — | (44,920 | ) | |||||||||||||
Inventories, net | — | (14,038 | ) | 2,871 | (1,593 | ) | (1,856 | ) | (14,616 | ) | |||||||||||||
Uniforms and other rental items in service | — | 754 | (4,182 | ) | 511 | (1,398 | ) | (4,315 | ) | ||||||||||||||
Prepaid expenses and other current assets | — | 412 | (2,411 | ) | 47 | — | (1,952 | ) | |||||||||||||||
Accounts payable | — | 23,367 | (10,857 | ) | 2,831 | 110 | 15,451 | ||||||||||||||||
Accrued compensation and related liabilities | 2,819 | (12,734 | ) | (8,935 | ) | (86 | ) | — | (18,936 | ) | |||||||||||||
Accrued liabilities and other | 139,766 | 3,711 | (148,384 | ) | 41 | — | (4,866 | ) | |||||||||||||||
Income taxes, current | — | (1,635 | ) | 1,460 | 659 | — | 484 | ||||||||||||||||
Net cash provided by operating activities | 460,635 | 87,366 | 17,431 | 14,757 | (278,468 | ) | 301,721 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (85,207 | ) | (60,837 | ) | (9,129 | ) | — | (155,173 | ) | |||||||||||||
Proceeds from redemption of marketable securities | — | — | — | 172,968 | — | 172,968 | |||||||||||||||||
Purchase of marketable securities and investments | — | (4,560 | ) | (28,751 | ) | (102,692 | ) | 17,733 | (118,270 | ) | |||||||||||||
Proceeds from sale of investment in Shred-it | — | 23,935 | — | 1,941 | — | 25,876 | |||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | (7,245 | ) | — | (10,533 | ) | — | (17,778 | ) | ||||||||||||||
Other, net | (460,630 | ) | 177,446 | 21,190 | 1,591 | 260,735 | 332 | ||||||||||||||||
Net cash (used in) provided by investing activities | (460,630 | ) | 104,369 | (68,398 | ) | 54,146 | 278,468 | (92,045 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Issuance of commercial paper, net | — | 66,000 | — | — | — | 66,000 | |||||||||||||||||
Proceeds from issuance of debt | — | — | (2,000 | ) | 2,000 | — | — | ||||||||||||||||
Repayment of debt | — | (250,000 | ) | — | — | — | (250,000 | ) | |||||||||||||||
Prepaid short-term debt financing fees | — | (13,495 | ) | — | — | — | (13,495 | ) | |||||||||||||||
Proceeds from exercise of stock-based compensation awards | 19,225 | — | — | — | — | 19,225 | |||||||||||||||||
Repurchase of common stock | (19,230 | ) | — | — | — | — | (19,230 | ) | |||||||||||||||
Other, net | — | (5,572 | ) | — | — | — | (5,572 | ) | |||||||||||||||
Net cash (used in) provided by financing activities | (5 | ) | (203,067 | ) | (2,000 | ) | 2,000 | — | (203,072 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (2,388 | ) | — | (2,388 | ) | |||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (11,332 | ) | (52,967 | ) | 68,515 | — | 4,216 | |||||||||||||||
Cash and cash equivalents at beginning of period | — | 57,893 | 55,392 | 26,072 | — | 139,357 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 46,561 | $ | 2,425 | $ | 94,587 | $ | — | $ | 143,573 |
(In thousands) | 2017 | 2016 | 2019 | 2018 | ||||||||||
Net cash provided by operating activities | $ | 379,009 | $ | 301,721 | $ | 276,901 | $ | 162,985 | ||||||
Net cash used in investing activities | $ | (6,218 | ) | $ | (92,045 | ) | $ | (78,139 | ) | $ | (70,785 | ) | ||
Net cash used in financing activities | $ | (309,521 | ) | $ | (203,072 | ) | $ | (193,607 | ) | $ | (112,508 | ) | ||
Cash and cash equivalents at the end of the period | $ | 236,002 | $ | 143,573 | $ | 102,131 | $ | 118,356 | ||||||
Marketable securities at the end of the period | $ | 22,732 | $ | — |
(In thousands) | Interest Rate | Fiscal Year Issued | Fiscal Year Maturity | November 30, 2017 | May 31, 2017 | Interest Rate | Fiscal Year Issued | Fiscal Year Maturity | August 31, 2019 | May 31, 2019 | ||||||||||||||||||
Debt due within one year | ||||||||||||||||||||||||||||
Senior notes | 6.13 | % | 2008 | 2018 | $ | 300,000 | $ | 300,000 | ||||||||||||||||||||
Commercial paper | 1.24 | % | (1) | Various | Various | — | 50,500 | 2.36 | % | (1) | 2020 | 2020 | $ | 139,000 | $ | 112,500 | ||||||||||||
Current portion of term loan | 2.00 | % | (1) | 2017 | 2018 | — | 12,500 | |||||||||||||||||||||
Term loan | 2.88 | % | (1) | 2019 | 2020 | 200,000 | 200,000 | |||||||||||||||||||||
Debt issuance costs | — | (100 | ) | (224 | ) | (236 | ) | |||||||||||||||||||||
Total debt due within one year | $ | 300,000 | $ | 362,900 | $ | 338,776 | $ | 312,264 | ||||||||||||||||||||
Debt due after one year | ||||||||||||||||||||||||||||
Senior notes | 4.30 | % | 2012 | 2022 | $ | 250,000 | $ | 250,000 | 4.30 | % | 2012 | 2022 | $ | 250,000 | $ | 250,000 | ||||||||||||
Senior notes | 2.90 | % | 2017 | 2022 | 650,000 | 650,000 | 2.90 | % | 2017 | 2022 | 650,000 | 650,000 | ||||||||||||||||
Senior notes | 3.25 | % | 2013 | 2023 | 300,000 | 300,000 | 3.25 | % | 2013 | 2023 | 300,000 | 300,000 | ||||||||||||||||
Senior notes (2) | 2.78 | % | 2013 | 2023 | 51,576 | 51,684 | ||||||||||||||||||||||
Senior notes | 2.78 | % | 2013 | 2023 | 52,337 | 52,554 | 3.11 | % | 2015 | 2025 | 51,889 | 51,973 | ||||||||||||||||
Senior notes (3) | 3.11 | % | 2015 | 2025 | 52,476 | 52,645 | ||||||||||||||||||||||
Senior notes | 3.70 | % | 2017 | 2027 | 1,000,000 | 1,000,000 | 3.70 | % | 2017 | 2027 | 1,000,000 | 1,000,000 | ||||||||||||||||
Senior notes | 6.15 | % | 2007 | 2037 | 250,000 | 250,000 | 6.15 | % | 2007 | 2037 | 250,000 | 250,000 | ||||||||||||||||
Long-term portion of term loan | 2.00 | % | (1) | 2017 | 2022 | — | 237,500 | |||||||||||||||||||||
Debt issuance costs | (20,591 | ) | (22,075 | ) | (15,408 | ) | (16,150 | ) | ||||||||||||||||||||
Total debt due after one year | $ | 2,534,222 | $ | 2,770,624 | $ | 2,538,057 | $ | 2,537,507 |
Rating Agency | Outlook | Commercial Paper | Long-term Debt | |||
Standard & Poor’s | Stable | A-2 | ||||
Moody’s Investors Service | Stable | P-2 | A3 |
Period (In millions, except share and per share data) | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of the publicly announced plan (1) | Maximum approximate dollar value of shares that may yet be purchased under the plan (1) | |||||||||
September 1 - 30, 2017 (2) | 957 | $ | 136.10 | — | $ | 500.0 | |||||||
October 1 - 31, 2017 (3) | 1,261 | $ | 149.04 | — | $ | 500.0 | |||||||
November 1 - 30, 2017 (4) | 2,232 | $ | 152.03 | — | $ | 500.0 | |||||||
Total | 4,450 | $ | 147.76 | — | $ | 500.0 |
Period (In millions, except share and per share data) | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of the publicly announced plan (1) | Maximum approximate dollar value of shares that may yet be purchased under the plan (1) | |||||||||
June 1 - 30, 2019 (2) | 838,179 | $ | 230.66 | 837,205 | $ | 263.5 | |||||||
July 1 - 31, 2019 (3) | 177,328 | $ | 261.67 | — | $ | 263.5 | |||||||
August 1 - 31, 2019 (4) | 66,687 | $ | 259.04 | — | $ | 263.5 | |||||||
Total | 1,082,194 | $ | 237.49 | 837,205 | $ | 263.5 |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
CINTAS CORPORATION | ||||||
(Registrant) | ||||||
Date: | /s/ | J. Michael Hansen | ||||
J. Michael Hansen | ||||||
(Principal Financial and Accounting Officer) |