Cover Page
Cover Page - shares | 6 Months Ended | |
Nov. 30, 2020 | Dec. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Nov. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-11399 | |
Entity Registrant Name | Cintas Corporation | |
Entity Central Index Key | 0000723254 | |
Current Fiscal Year End Date | --05-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 31-1188630 | |
Entity Address, Address Line One | 6800 Cintas Boulevard | |
Entity Address, Address Line Two | P.O. Box 625737 | |
Entity Address, City or Town | Cincinnati, | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 45262-5737 | |
City Area Code | 513 | |
Local Phone Number | 459-1200 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | CTAS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 105,029,963 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Revenue: | ||||
Total revenue | $ 1,757,048 | $ 1,843,749 | $ 3,503,622 | $ 3,654,888 |
Costs and expenses: | ||||
Selling and administrative expenses | 467,012 | 517,927 | 943,507 | 1,060,923 |
Operating income | 352,872 | 334,464 | 702,578 | 640,610 |
Interest income | (218) | (283) | (282) | (445) |
Interest expense | 24,557 | 26,177 | 49,107 | 53,498 |
Income before income taxes | 328,533 | 308,570 | 653,753 | 587,557 |
Income taxes | 43,676 | 62,127 | 68,891 | 90,302 |
Income from continuing operations | 284,857 | 246,443 | 584,862 | 497,255 |
Loss from discontinued operations, net of tax benefit of $107 and $107, respectively | 0 | (323) | 0 | (323) |
Net income | $ 284,857 | $ 246,120 | $ 584,862 | $ 496,932 |
Basic earnings per share: | ||||
Continuing operations (in dollars per share) | $ 2.69 | $ 2.35 | $ 5.55 | $ 4.75 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Basic earnings per share (in dollars per share) | 2.69 | 2.35 | 5.55 | 4.75 |
Diluted earnings per share: | ||||
Continuing operations (in dollars per share) | 2.62 | 2.27 | 5.40 | 4.60 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Diluted earnings per share (in dollars per share) | 2.62 | 2.27 | 5.40 | 4.60 |
Dividends declared per share (in dollars per share) | $ 3.51 | $ 2.55 | $ 3.51 | $ 2.55 |
Uniform Rental and Facility Services | ||||
Revenue: | ||||
Total revenue | $ 1,410,488 | $ 1,469,976 | $ 2,804,899 | $ 2,924,503 |
Costs and expenses: | ||||
Cost of revenue | 739,811 | 784,937 | 1,455,223 | 1,553,613 |
Other | ||||
Revenue: | ||||
Total revenue | 346,560 | 373,773 | 698,723 | 730,385 |
Costs and expenses: | ||||
Cost of revenue | $ 197,353 | $ 206,421 | $ 402,314 | $ 399,742 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Nov. 30, 2019 | Nov. 30, 2019 | |
Income Statement [Abstract] | ||
Loss from discontinued operations, tax expense (benefit) | $ (107) | $ (107) |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 284,857 | $ 246,120 | $ 584,862 | $ 496,932 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 2,960 | 1,413 | 29,906 | 8,137 |
Change in fair value of interest rate lock agreements, net of tax expense (benefit) of $5,400, $7,346, $9,072 and $(2,498), respectively | 15,942 | 22,761 | 26,784 | (7,142) |
Amortization of interest rate lock agreements, net of tax benefit of $115, $116, $231 and $295, respectively | (359) | (358) | (717) | (653) |
Other comprehensive income, net of tax expense (benefit) of $5,515, $7,462, $9,303 and $(2,203), respectively | 18,543 | 23,816 | 55,973 | 342 |
Comprehensive income | $ 303,400 | $ 269,936 | $ 640,835 | $ 497,274 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in fair value of interest rate lock agreements, tax expense (benefit) | $ 5,400 | $ 7,346 | $ 9,072 | $ (2,498) |
Amortization of interest rate lock agreements, tax benefit | 115 | 116 | 231 | 295 |
Other comprehensive income (loss), tax expense (benefit) | $ 5,515 | $ 7,462 | $ 9,303 | $ (2,203) |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2020 | May 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 703,175 | $ 145,402 |
Accounts receivable, net | 910,266 | 870,369 |
Inventories, net | 534,128 | 408,898 |
Uniforms and other rental items in service | 772,937 | 770,411 |
Income taxes, current | 56,802 | 0 |
Prepaid expenses and other current assets | 125,465 | 114,619 |
Total current assets | 3,102,773 | 2,309,699 |
Property and equipment, net | 1,344,333 | 1,403,065 |
Investments | 252,454 | 214,847 |
Goodwill | 2,889,754 | 2,870,020 |
Service contracts, net | 430,923 | 451,529 |
Operating lease right-of-use assets, net | 154,022 | 159,967 |
Other assets, net | 280,494 | 260,758 |
Total assets | 8,454,753 | 7,669,885 |
Current liabilities: | ||
Accounts payable | 274,021 | 230,995 |
Accrued compensation and related liabilities | 150,739 | 127,417 |
Accrued liabilities | 791,158 | 456,653 |
Income taxes, current | 0 | 27,099 |
Operating lease liabilities, current | 42,682 | 43,031 |
Debt due within one year | 249,872 | 0 |
Total current liabilities | 1,508,472 | 885,195 |
Long-term liabilities: | ||
Debt due after one year | 2,290,932 | 2,539,705 |
Deferred income taxes | 376,414 | 388,579 |
Operating lease liabilities | 117,494 | 122,695 |
Accrued liabilities | 563,481 | 498,509 |
Total long-term liabilities | 3,348,321 | 3,549,488 |
Shareholders’ equity: | ||
Preferred stock, no par value: 100,000 shares authorized, none outstanding | 0 | 0 |
Common stock, no par value: 425,000,000 shares authorized, FY 2021: 188,600,745 shares issued and 104,985,732 shares outstanding; FY 2020: 186,793,207 shares issued and 103,415,368 shares outstanding | 1,387,734 | 1,102,689 |
Paid-in capital | 51,608 | 171,521 |
Retained earnings | 7,509,544 | 7,296,509 |
Treasury stock: FY 2021: 83,615,013 shares, FY 2020: 83,377,839 | (5,253,519) | (5,182,137) |
Accumulated other comprehensive loss | (97,407) | (153,380) |
Total shareholders’ equity | 3,597,960 | 3,235,202 |
Total liabilities and shareholders' equity | $ 8,454,753 | $ 7,669,885 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - shares | Nov. 30, 2020 | May 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized (in shares) | 100,000 | 100,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 425,000,000 | 425,000,000 |
Common stock, issued (in shares) | 188,600,745 | 186,793,207 |
Common stock, outstanding (in shares) | 104,985,732 | 103,415,368 |
Treasury stock (in shares) | 83,615,013 | 83,377,839 |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Paid-In Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Other Accumulated Comprehensive Income (Loss) | Other Accumulated Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock |
Balance (shares) at May. 31, 2019 | 184,791 | 81,506 | |||||||
Balance at May. 31, 2019 | $ 3,002,721 | $ (833) | $ 840,328 | $ 227,928 | $ 6,691,236 | $ (2,808) | $ (39,152) | $ 1,975 | $ (4,717,619) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
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 (shares) | 605 | ||||||||
Vesting of stock-based compensation awards | 0 | $ 157,882 | (157,882) | ||||||
Stock options exercised, net of shares surrendered (in shares) | 557 | ||||||||
Stock options exercised, net of shares surrendered | 37,915 | $ 37,915 | |||||||
Repurchase of common stock (shares) | (1,082) | ||||||||
Repurchase of common stock | (256,830) | $ (256,830) | |||||||
Balance (shares) at Aug. 31, 2019 | 185,953 | 82,588 | |||||||
Balance at Aug. 31, 2019 | 3,050,706 | $ 1,036,125 | 110,441 | 6,939,240 | (60,651) | $ (4,974,449) | |||
Balance (shares) at May. 31, 2019 | 184,791 | 81,506 | |||||||
Balance at May. 31, 2019 | 3,002,721 | $ (833) | $ 840,328 | 227,928 | 6,691,236 | $ (2,808) | (39,152) | $ 1,975 | $ (4,717,619) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 496,932 | ||||||||
Comprehensive loss, net of tax | 342 | ||||||||
Balance (shares) at Nov. 30, 2019 | 186,298 | 82,595 | |||||||
Balance at Nov. 30, 2019 | 3,104,970 | $ 1,066,814 | 134,041 | 6,917,310 | (36,835) | $ (4,976,360) | |||
Balance (shares) at Aug. 31, 2019 | 185,953 | 82,588 | |||||||
Balance at Aug. 31, 2019 | 3,050,706 | $ 1,036,125 | 110,441 | 6,939,240 | (60,651) | $ (4,974,449) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 246,120 | 246,120 | |||||||
Comprehensive loss, net of tax | 23,816 | 23,816 | |||||||
Dividends | (268,050) | (268,050) | |||||||
Stock-based compensation | 29,003 | 29,003 | |||||||
Vesting of stock-based compensation awards (shares) | 21 | ||||||||
Vesting of stock-based compensation awards | 0 | $ 5,403 | (5,403) | ||||||
Stock options exercised, net of shares surrendered (in shares) | 324 | ||||||||
Stock options exercised, net of shares surrendered | 25,286 | $ 25,286 | |||||||
Repurchase of common stock (shares) | (7) | ||||||||
Repurchase of common stock | (1,911) | $ (1,911) | |||||||
Balance (shares) at Nov. 30, 2019 | 186,298 | 82,595 | |||||||
Balance at Nov. 30, 2019 | 3,104,970 | $ 1,066,814 | 134,041 | 6,917,310 | (36,835) | $ (4,976,360) | |||
Balance (shares) at May. 31, 2020 | 186,793 | 83,378 | |||||||
Balance at May. 31, 2020 | 3,235,202 | $ 1,102,689 | 171,521 | 7,296,509 | (153,380) | $ (5,182,137) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 300,005 | 300,005 | |||||||
Comprehensive loss, net of tax | 37,430 | 37,430 | |||||||
Stock-based compensation | 29,055 | 29,055 | |||||||
Vesting of stock-based compensation awards (shares) | 568 | ||||||||
Vesting of stock-based compensation awards | 0 | $ 170,421 | (170,421) | ||||||
Stock options exercised, net of shares surrendered (in shares) | 795 | ||||||||
Stock options exercised, net of shares surrendered | 72,123 | $ 72,123 | |||||||
Repurchase of common stock (shares) | (230) | ||||||||
Repurchase of common stock | (69,011) | $ (69,011) | |||||||
Balance (shares) at Aug. 31, 2020 | 188,156 | 83,608 | |||||||
Balance at Aug. 31, 2020 | 3,604,804 | $ 1,345,233 | 30,155 | 7,596,514 | (115,950) | $ (5,251,148) | |||
Balance (shares) at May. 31, 2020 | 186,793 | 83,378 | |||||||
Balance at May. 31, 2020 | 3,235,202 | $ 1,102,689 | 171,521 | 7,296,509 | (153,380) | $ (5,182,137) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 584,862 | ||||||||
Comprehensive loss, net of tax | 55,973 | ||||||||
Balance (shares) at Nov. 30, 2020 | 188,601 | 83,615 | |||||||
Balance at Nov. 30, 2020 | 3,597,960 | $ 1,387,734 | 51,608 | 7,509,544 | (97,407) | $ (5,253,519) | |||
Balance (shares) at Aug. 31, 2020 | 188,156 | 83,608 | |||||||
Balance at Aug. 31, 2020 | 3,604,804 | $ 1,345,233 | 30,155 | 7,596,514 | (115,950) | $ (5,251,148) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 284,857 | 284,857 | |||||||
Comprehensive loss, net of tax | 18,543 | 18,543 | |||||||
Dividends | (371,827) | (371,827) | |||||||
Stock-based compensation | 28,547 | 28,547 | |||||||
Vesting of stock-based compensation awards (shares) | 21 | ||||||||
Vesting of stock-based compensation awards | 0 | $ 7,094 | (7,094) | ||||||
Stock options exercised, net of shares surrendered (in shares) | 424 | ||||||||
Stock options exercised, net of shares surrendered | 35,407 | $ 35,407 | |||||||
Repurchase of common stock (shares) | (7) | ||||||||
Repurchase of common stock | (2,371) | $ (2,371) | |||||||
Balance (shares) at Nov. 30, 2020 | 188,601 | 83,615 | |||||||
Balance at Nov. 30, 2020 | $ 3,597,960 | $ 1,387,734 | $ 51,608 | $ 7,509,544 | $ (97,407) | $ (5,253,519) |
Consolidated Condensed Statem_6
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 584,862 | $ 496,932 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 121,096 | 115,367 |
Amortization of intangible assets and capitalized contract costs | 71,558 | 70,963 |
Stock-based compensation | 57,602 | 69,398 |
Gain on sale of operating assets | (17,963) | 0 |
Deferred income taxes | (23,099) | 7,632 |
Change in current assets and liabilities, net of acquisitions of businesses: | ||
Accounts receivable, net | (39,892) | (37,940) |
Inventories, net | (124,949) | (13,402) |
Uniforms and other rental items in service | (2,914) | (32,744) |
Prepaid expenses and other current assets and capitalized contract costs | (57,295) | (68,409) |
Accounts payable | 42,228 | 28,055 |
Accrued compensation and related liabilities | 23,809 | (29,326) |
Accrued liabilities and other | 21,570 | (17,883) |
Income taxes, current | (83,649) | (17,292) |
Net cash provided by operating activities | 572,964 | 571,351 |
Cash flows from investing activities: | ||
Capital expenditures | (57,659) | (126,167) |
Purchases of investments | (7,205) | (10,121) |
Proceeds from sale of operating assets, net of cash disposed | 23,426 | 13,300 |
Acquisitions of businesses, net of cash acquired | (6,932) | (6,582) |
Other, net | (2,872) | (2,103) |
Net cash used in investing activities | (51,242) | (131,673) |
Cash flows from financing activities: | ||
Payments of commercial paper, net | 0 | (112,500) |
Proceeds from exercise of stock-based compensation awards | 107,530 | 63,201 |
Repurchase of common stock | (71,382) | (258,741) |
Other, net | (1,687) | (1,952) |
Net cash provided by (used in) financing activities | 34,461 | (309,992) |
Effect of exchange rate changes on cash and cash equivalents | 1,590 | 204 |
Net increase in cash and cash equivalents | 557,773 | 129,890 |
Cash and cash equivalents at beginning of period | 145,402 | 96,645 |
Cash and cash equivalents at end of period | $ 703,175 | $ 226,535 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Nov. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated condensed financial statements of Cintas Corporation (Cintas, the Company, we, us or our) included herein have been prepared by Cintas, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with United States generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations. While we believe that the disclosures are adequately presented, we suggest that these consolidated condensed financial statements be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020. A summary of our significant accounting policies is presented beginning on page 40 of that report. There have been no material changes in the accounting policies followed by Cintas during the current fiscal year other than the adoption of new accounting pronouncements discussed below. Interim results are subject to variations and are not necessarily indicative of the results of operations for a full fiscal year. In the opinion of management, adjustments (which include only normal recurring adjustments) necessary for a fair statement of the consolidated results of the interim periods shown have been made. Inventories, net are valued at the lower of cost (first-in, first-out) or net realizable value. Inventory is comprised of the following: (In thousands) November 30, 2020 May 31, Raw materials $ 14,291 $ 18,661 Work in process 24,706 29,497 Finished goods 495,131 360,740 $ 534,128 $ 408,898 Inventories are recorded net of reserves for obsolete inventory of $52.3 million and $45.5 million at November 30, 2020 and May 31, 2020, respectively. The inventory obsolescence reserve is determined by specific identification, as well as an estimate based on Cintas' historical rates of obsolescence. Once a specific inventory item is written down to the lower of cost or net realizable value, a new cost basis has been established, and that inventory item cannot subsequently be marked up. New Accounting Pronouncements Effective June 1, 2020, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In connection with recognizing credit losses on accounts receivable and other financial instruments, Cintas now uses a forward-looking expected loss model rather than the incurred loss model. Adoption of ASU 2016-13 requires using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align existing credit loss methodology with the new standard. The adoption of ASU 2016-13 did not have a material impact on the Company's consolidated condensed financial statements. No other new accounting pronouncement recently issued or newly effective had or is expected to have a material impact on Cintas' consolidated condensed financial statements. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Nov. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The following table presents Cintas' total revenue disaggregated by operating segment: Three Months Ended Six Months Ended November 30, November 30, November 30, November 30, (In thousands) Revenue % Revenue % Revenue % Revenue % Uniform Rental and $ 1,410,488 80.3 % $ 1,469,976 79.7 % $ 2,804,899 80.0 % $ 2,924,503 80.0 % First Aid and Safety 194,419 11.0 % 169,668 9.2 % 398,899 11.4 % 341,758 9.4 % Fire Protection 104,636 6.0 % 106,735 5.8 % 212,701 6.1 % 216,861 5.9 % Uniform Direct Sales 47,505 2.7 % 97,370 5.3 % 87,123 2.5 % 171,766 4.7 % Total revenue $ 1,757,048 100.0 % $ 1,843,749 100.0 % $ 3,503,622 100.0 % $ 3,654,888 100.0 % Fire Protection Services and Uniform Direct Sales are included within All Other as disclosed in Note 12 entitled Segment Information. Revenue Recognition Policy More than 95% of the Company's revenue is derived from fees for route servicing of Uniform Rental and Facility Services, First Aid and Safety Services and Fire Protection Services, performed by a Cintas employee-partner, at the customer's location of business. Revenues from our route servicing customer contracts represent a single-performance obligation. The Company recognizes these revenues over time as services are performed based on the nature of services provided and contractual rates (output method). The Company's remaining revenues, primarily within the Uniform Direct Sales operating segment, and representing less than 5% of the Company's total revenues, are recognized when the obligations under the terms of a contract with a customer are satisfied. This generally occurs when the goods are transferred to the customer. Revenue recorded is presented net of sales and other taxes we collect on behalf of governmental authorities. Shipping and handling costs charged to customers are treated as fulfillment activities and are recorded in both revenue and cost of sales at the time control is transferred to the customer. Certain of our customer contracts, primarily within our Uniform Direct Sales operating segment, include pricing terms and conditions that include components of variable consideration. The variable consideration is typically in the form of consideration paid to a customer based on performance metrics specified within the contract. Specifically, some contracts contain discounts or rebates that the customer can earn through the achievement of specified volume levels. Each component of variable consideration is earned based on the Company's actual performance during the measurement period specified within the contract. To determine the transaction price, the Company estimates the variable consideration using the most likely amount method, based on the specific contract provisions and known performance results during the relevant measurement period. When determining if variable consideration should be constrained, the Company considers whether factors outside its control could result in a significant reversal of revenue. In making these assessments, the Company considers the likelihood and magnitude of a potential reversal. The Company's performance period generally corresponds with the monthly invoice period. No constraints on our revenue recognition were applied during the three or six months ended November 30, 2020 or 2019. The Company reassesses these estimates during each reporting period. Cintas maintains a liability for these discounts and rebates within accrued liabilities on the consolidated condensed balance sheets. Variable consideration also includes consideration paid to a customer at the beginning of a contract. Cintas capitalizes this consideration and amortizes it over the life of the contract as a reduction to revenue in accordance with Accounting Standards Codification (ASC) 606, "Revenue" (Topic 606). These assets are included in other assets, net on the consolidated condensed balance sheets. Additionally, in accordance with Topic 606, certain Uniform Direct Sales customer contracts contain a provision with an enforceable right of payment and the underlying product has no alternative use to Cintas. Consequently, when both aforementioned provisions are prevalent in a customer contract, the revenue is recorded for finished goods that the customer is obligated to purchase under the termination terms of the contract. Costs to Obtain a Contract The Company capitalizes commission expenses paid to our employee-partners when the commissions are deemed to be incremental for obtaining the route servicing customer contract. The deferred commissions are amortized on a straight-line basis over the expected period of benefit. We review the deferred commission balances for impairment on an ongoing basis. Deferred commissions are classified as current or noncurrent based on the timing of when we expect to recognize the expense. The current portion is included in prepaid expenses and other current assets and the noncurrent portion is included in other assets, net on the Company's consolidated condensed balance sheets. As of November 30, 2020, the current and noncurrent assets related to deferred commissions totaled $78.7 million and $232.0 million, respectively. As of May 31, 2020, the current and noncurrent assets related to deferred commissions totaled $76.2 million and $227.1 million, respectively. We recorded amortization expense related to deferred commissions of $20.7 million and $19.2 million during the three months ended November 30, 2020 and 2019, respectively. During the six months ended November 30, 2020 and 2019, we recorded amortization expense related to deferred commissions of $41.1 million and $38.0 million, respectively. These expenses are classified in selling and administrative expenses on the consolidated condensed statements of income. |
Leases
Leases | 6 Months Ended |
Nov. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases Cintas has operating leases for certain operating facilities, vehicles and equipment, which provide the right to use the underlying asset and require lease payments over the term of the lease. Each new contract is evaluated to determine if an arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. All identified leases are recorded on the consolidated condensed balance sheet with a corresponding operating lease right-of-use asset, net, representing the right to use the underlying asset for the lease term and the operating lease liabilities representing the obligation to make lease payments arising from the lease. Short-term operating leases, which have an initial term of 12 months or less, are not recorded on the consolidated condensed balance sheet. Operating lease right-of-use assets, net and operating lease liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of lease payments is determined primarily using the incremental borrowing rate based on the information available at lease commencement date. Lease expense for operating leases is recorded on a straight-line basis over the lease term and variable lease costs are recorded as incurred. Both lease expense and variable lease costs are primarily recorded in cost of uniform rental and facility services and other on the Company's consolidated condensed statements of income. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating lease costs, including short-term lease expense and variable lease costs which were immaterial in each period, were $18.1 million and $17.7 million for the three months ended November 30, 2020 and 2019, respectively. For the six months ended November 30, 2020 and 2019, operating lease costs, including short-term lease expense and variable lease costs which were immaterial in each period, were $35.2 million and $34.9 million, respectively. The following table provides supplemental information related to the Company's consolidated condensed statements of cash flows for the six months ended November 30: (In thousands) 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 24,565 $ 24,927 Operating lease right-of-use assets obtained in exchange for new and renewed $ 15,735 $ 24,770 Other information related to the operating lease right-of-use assets, net and operating lease liabilities was as follows: November 30, 2020 May 31, Weighted-average remaining lease term - operating leases 5.01 years 5.19 years Weighted-average discount rate - operating leases 2.58% 2.66% The contractual future minimum lease payments of Cintas' operating lease liabilities by fiscal year are as follows as of November 30, 2020: (In thousands) 2021 (remaining six months) $ 24,445 2022 42,156 2023 33,459 2024 23,634 2025 16,798 Thereafter 30,754 Total payments 171,246 Less interest (11,070) Total present value of lease payments $ 160,176 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Nov. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements All financial instruments that are measured at fair value on a recurring basis (at least annually) have been classified within the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the consolidated condensed balance sheet date. These financial instruments measured at fair value on a recurring basis are summarized below: As of November 30, 2020 (In thousands) Level 1 Level 2 Level 3 Fair Value Cash and cash equivalents $ 703,175 $ — $ — $ 703,175 Other assets, net: Interest rate lock agreements — 9,834 — 9,834 Total assets at fair value $ 703,175 $ 9,834 $ — $ 713,009 Long-term accrued liabilities: Interest rate lock agreements $ — $ 138,118 $ — $ 138,118 Total liabilities at fair value $ — $ 138,118 $ — $ 138,118 As of May 31, 2020 (In thousands) Level 1 Level 2 Level 3 Fair Value Cash and cash equivalents $ 145,402 $ — $ — $ 145,402 Other assets, net: Interest rate lock agreements — 1,546 — 1,546 Total assets at fair value $ 145,402 $ 1,546 $ — $ 146,948 Long-term accrued liabilities: Interest rate lock agreements $ — $ 165,686 $ — $ 165,686 Total liabilities at fair value $ — $ 165,686 $ — $ 165,686 Cintas’ cash and cash equivalents are generally classified within Level 1 or Level 2 of the fair value hierarchy. Financial instruments classified as Level 1 are based on quoted market prices in active markets, and financial instruments classified as Level 2 are based on quoted market prices, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. The types of financial instruments Cintas classifies within Level 1 include most bank deposits and money market securities. Cintas does not adjust the quoted market price for such financial instruments. The fair values of outstanding interest rate lock agreements are included in other assets, net and long-term accrued liabilities at both November 30, 2020 and May 31, 2020. The fair values of Cintas' interest rate lock agreements are based on similar exchange traded derivatives (market approach) and are, therefore, included within Level 2 of the fair value hierarchy. The fair value was determined by comparing the locked rates against the benchmarked treasury rate. No other amounts included in other assets, net or long-term accrued liabilities are recorded at fair value on a recurring basis. The methods described above may produce a fair value that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while Cintas believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the consolidated condensed balance sheet dates. |
Investments
Investments | 6 Months Ended |
Nov. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | InvestmentsAt November 30, 2020, investments were $252.5 million and include the cash surrender value of insurance policies of $227.0 million, equity method investments of $22.3 million and cost method investments of $3.2 million. At May 31, 2020, investments were $214.8 million and include the cash surrender value of insurance policies of $192.7 million, equity method investments of $19.0 million and cost method investments of $3.1 million. Investments are generally evaluated for impairment on an annual basis or when indicators of impairment exist. For the three and six months ended November 30, 2020 and 2019, no impairment losses were recorded. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Nov. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Cintas uses the two-class method to calculate basic and diluted earnings per share as a result of outstanding participating securities in the form of restricted stock awards. The following tables set forth the computation of basic and diluted earnings per share using the two-class method for amounts attributable to Cintas’ common shares. Three Months Ended Six Months Ended Basic Earnings per Share from Continuing Operations (in thousands except per share data) November 30, 2020 November 30, 2019 November 30, 2020 November 30, 2019 Income from continuing operations $ 284,857 $ 246,443 $ 584,862 $ 497,255 Less: income from continuing operations 2,015 2,425 4,153 4,904 Income from continuing operations available $ 282,842 $ 244,018 $ 580,709 $ 492,351 Basic weighted average common shares outstanding 104,999 103,959 104,546 103,638 Basic earnings per share from continuing operations $ 2.69 $ 2.35 $ 5.55 $ 4.75 Three Months Ended Six Months Ended Diluted Earnings per Share from Continuing Operations (in thousands except per share data) November 30, 2020 November 30, 2019 November 30, 2020 November 30, 2019 Income from continuing operations $ 284,857 $ 246,443 $ 584,862 $ 497,255 Less: income from continuing operations allocated to participating securities 2,015 2,425 4,153 4,904 Income from continuing operations available to common shareholders $ 282,842 $ 244,018 $ 580,709 $ 492,351 Basic weighted average common shares outstanding 104,999 103,959 104,546 103,638 Effect of dilutive securities – employee stock options 2,982 3,376 3,010 3,476 Diluted weighted average common shares outstanding 107,981 107,335 107,556 107,114 Diluted earnings per share from continuing operations $ 2.62 $ 2.27 $ 5.40 $ 4.60 There were no discontinued operations for the three or six months ended November 30, 2020. For the three and six months ended November 30, 2019, both basic and diluted earnings per share from discontinued operations rounded to zero. For the three months ended November 30, 2020 and 2019, options granted to purchase 0.2 million shares of Cintas common stock were excluded from the computation of diluted earnings per share. For the six months ended November 30, 2020 and 2019, options granted to purchase 0.2 million and 0.3 million shares of Cintas common stock, respectively, were excluded from the computation of diluted earnings per share. The exercise prices of these options were greater than the average market price of the common stock (anti-dilutive). On October 30, 2018, Cintas announced that the Board of Directors authorized a $1.0 billion share buyback program, which does not have an expiration date. On October 29, 2019, we announced that the Board of Directors authorized a new $1.0 billion share buyback program, which does not have an expiration date. There were no share buybacks for the three months ended November 30, 2020 or 2019, and no share buybacks for the six months ended November 30, 2020. For the six months ended November 30, 2019, we purchased 0.8 million shares of Cintas common stock at an average price of $230.66 per share for a total purchase price of $193.1 million. There were no share buybacks in the period subsequent to November 30, 2020, through January 8, 2021, under any share buyback program. From the inception of the October 30, 2018 program through January 8, 2021, Cintas has purchased a total of 4.3 million shares of Cintas common stock at an average price of $219.42 per share for a total purchase price of $939.1 million. |
Goodwill, Service Contracts and
Goodwill, Service Contracts and Other Assets | 6 Months Ended |
Nov. 30, 2020 | |
Goodwill, Service Contracts And Other Assets [Abstract] | |
Goodwill, Service Contracts and Other Assets | Goodwill, Service Contracts and Other Assets Changes in the carrying amount of goodwill and service contracts for the six months ended November 30, 2020, by reportable operating segment and All Other, are as follows: Goodwill (in thousands) Uniform Rental First Aid All Total Balance as of June 1, 2020 $ 2,513,041 $ 243,266 $ 113,713 $ 2,870,020 Goodwill acquired 1,568 2,165 562 4,295 Foreign currency translation 14,252 1,146 41 15,439 Balance as of November 30, 2020 $ 2,528,861 $ 246,577 $ 114,316 $ 2,889,754 Service Contracts (in thousands) Uniform Rental First Aid All Total Balance as of June 1, 2020 $ 407,611 $ 19,805 $ 24,113 $ 451,529 Service contracts acquired 2,369 1,748 282 4,399 Service contracts amortization (24,224) (1,907) (2,497) (28,628) Foreign currency translation 3,541 82 — 3,623 Balance as of November 30, 2020 $ 389,297 $ 19,728 $ 21,898 $ 430,923 Information regarding Cintas’ service contracts and other assets is as follows: As of November 30, 2020 (In thousands) Carrying Accumulated Net Service contracts $ 951,946 $ 521,023 $ 430,923 Capitalized contract costs (1) $ 421,993 $ 189,988 $ 232,005 Noncompete and consulting agreements 44,383 41,836 2,547 Other 69,652 23,710 45,942 Total other assets $ 536,028 $ 255,534 $ 280,494 As of May 31, 2020 (In thousands) Carrying Accumulated Net Service contracts $ 941,383 $ 489,854 $ 451,529 Capitalized contract costs (1) $ 375,912 $ 148,853 $ 227,059 Noncompete and consulting agreements 43,890 41,317 2,573 Other 54,239 23,113 31,126 Total other assets $ 474,041 $ 213,283 $ 260,758 (1) The current portion of capitalized contract costs, included in prepaid expenses and other current assets on the consolidated condensed balance sheets as of November 30, 2020 and May 31, 2020, is $78.7 million and $76.2 million, respectively. Amortization expense for service contracts and other assets was $35.4 million and $35.3 million for the three months ended November 30, 2020 and 2019, respectively. For the six months ended November 30, 2020 and 2019, amortization expense for service contracts and other assets was $70.5 million and $69.9 million, respectively. As of November 30, 2020, the estimated future amortization expense for service contracts and other assets, excluding any future acquisitions and commissions to be earned, is as follows: Fiscal Year (In thousands) 2021 (remaining six months) $ 69,901 2022 130,427 2023 111,191 2024 99,082 2025 86,188 Thereafter 250,294 Total future amortization expense $ 747,083 |
Debt, Derivatives and Hedging A
Debt, Derivatives and Hedging Activities | 6 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt, Derivatives and Hedging Activities | Debt, Derivatives and Hedging Activities Cintas' outstanding debt is summarized as follows: (In thousands) Interest Fiscal Year Fiscal Year November 30, May 31, Debt due within one year Senior notes 4.30 % 2012 2022 $ 250,000 $ — Debt issuance costs (128) — Total debt due within one year $ 249,872 $ — Debt due after one year Senior notes 4.30 % 2012 2022 $ — $ 250,000 Senior notes 2.90 % 2017 2022 650,000 650,000 Senior notes 3.25 % 2013 2023 300,000 300,000 Senior notes (1) 2.78 % 2013 2023 51,032 51,250 Senior notes (2) 3.11 % 2015 2025 51,469 51,637 Senior notes 3.70 % 2017 2027 1,000,000 1,000,000 Senior notes 6.15 % 2007 2037 250,000 250,000 Debt issuance costs (11,569) (13,182) Total debt due after one year $ 2,290,932 $ 2,539,705 (1) 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%. (2) 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%. Cintas' senior notes, excluding the G&K senior notes assumed with the acquisition of G&K in fiscal 2017, are recorded at cost, net of debt issuance costs. The fair value of the long-term debt is estimated using Level 2 inputs based on general market prices. The carrying value and fair value of Cintas' debt as of November 30, 2020 were $2,550.0 million and $2,829.2 million, respectively, and as of May 31, 2020 were $2,550.0 million and $2,804.2 million, respectively. The credit agreement that supports our commercial paper program was amended and restated on May 24, 2019. The amendment increased the capacity of the revolving credit facility from $600.0 million to $1.0 billion and created a new term loan of $200.0 million. The credit agreement has an accordion feature that provides Cintas the ability to request increases to the borrowing commitments under either the revolving credit facility or the term loan of up to $250.0 million in the aggregate, subject to customary conditions. The maturity date of the revolving credit facility is May 23, 2024 . As of November 30, 2020 and May 31, 2020, t her e was no commercial paper outstanding and no borrowings on our revolving credit facility. Cintas uses interest rate locks to manage our overall interest expense as interest rate locks effectively change the interest rate of specific debt issuances. The interest rate locks are entered into to protect against unfavorable movements in the benchmark treasury rate related to forecasted debt issuances. Cintas used interest rate lock agreements to hedge against movements in the treasury rates at the time Cintas issued its senior notes in fiscal 2007, fiscal 2012, fiscal 2013 and fiscal 2017. The amortization of the cash flow hedges resulted in a decrease to other comprehensive income of $0.4 million for both the three months ended November 30, 2020 and 2019. The amortization of the cash flow hedges resulted in a decrease to other comprehensive income of $0.7 million for both the six months ended November 30, 2020 and 2019. During fiscal 2020, Cintas entered into interest rate lock agreements with a notional value of $950.0 million for a forecasted debt issuance in connection with the upcoming debt maturities. As of November 30, 2020, the fair values of these interest rate locks were an asset of $9.8 million and a liability of $38.3 million, recorded in other assets and long-term accrued liabilities, respectively, and in other comprehensive loss, net of tax. As of May 31, 2020, the fair values of these interest rate locks were an asset of $1.5 million and a liability of $53.8 million, recorded in other assets and long-term accrued liabilities, respectively, and in other comprehensive loss, net of tax. During fiscal 2019, Cintas entered into interest rate lock agreements with a notional value of $500.0 million for a forecasted debt issuance in connection with the upcoming debt maturities. As of November 30, 2020 and May 31, 2020, the fair values of these interest rate locks were a liability of $99.8 million and $111.9 million, respectively, and were recorded in long-term accrued liabilities and in other comprehensive loss, net of tax. These interest rate locks had no impact on net income or cash flows from continuing operations for the three and six months ended November 30, 2020 or 2019. Cintas has certain covenants related to debt agreements. These covenants limit Cintas' ability to incur certain liens, to engage in sale-leaseback transactions and to merge, consolidate or sell all or substantially all of Cintas' assets. These covenants also require Cintas to maintain certain debt to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) and interest coverage ratios. Cross-default provisions exist between certain debt instruments. If a default of a significant covenant were to occur, the default could result in an acceleration of the maturity of the indebtedness, impair liquidity and limit the ability to raise future capital. Cintas was in compliance with all of the debt covenants for all periods presented. As of November 30, 2020 and May 31, 2020, the Company had unrecognized inventory purchase commitments with various suppliers totaling $35.8 million and $117.6 million, respectively. In fiscal 2021, we entered into $25.6 million of new unrecognized inventory purchase commitments and made $107.4 million of inventory purchases related to the unrecognized commitments outstanding at May 31, 2020. The Company expects to purchase all remaining commitments within the next twelve months. |
Income Taxes
Income Taxes | 6 Months Ended |
Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In the normal course of business, Cintas provides for uncertain tax positions and the related interest and adjusts its unrecognized tax benefits and accrued interest accordingly. As of November 30, 2020 and May 31, 2020, recorded unrecognized tax benefits were $37.7 million and $35.9 million, respectively, and are included in long-term accrued liabilities on the consolidated condensed balance sheets. The majority of Cintas' operations are in North America. Cintas is required to file federal income tax returns, as well as state income tax returns in a majority of the domestic states and also in certain Canadian provinces. At times, Cintas is subject to audits in these jurisdictions. The audits, by nature, are sometimes complex and can require several years to resolve. The final resolution of any such tax audit could result in either a reduction in Cintas' accruals or an increase in its income tax provision, either of which could have an impact on the consolidated results of operations in any given period. All United States federal income tax returns are closed to audit through fiscal 2016. Cintas is currently in various audits in certain foreign jurisdictions and certain domestic states. The years under foreign and domestic state audits cover fiscal years back to 2013. Based on the resolution of the various audits and other potential regulatory developments, it is reasonably possible that the balance of unrecognized tax benefits would not change for the fiscal year ending May 31, 2021. |
Pension Plans
Pension Plans | 6 Months Ended |
Nov. 30, 2020 | |
Retirement Benefits [Abstract] | |
Pension Plans | Pension Plans In conjunction with the acquisition of G&K in fiscal 2017, Cintas assumed G&K's noncontributory defined benefit pension plan (the Pension Plan) that covers substantially all legacy G&K employees who were employed as of July 1, 2005, except certain employees who were covered by union-administered plans. Benefits are based on the number of years of service and each employee’s compensation near retirement. We will make annual contributions to the Pension Plan consistent with federal funding requirements. The Pension Plan was frozen by G&K effective December 31, 2006. Future growth in benefits will not occur beyond this date. Applicable accounting standards require that the consolidated condensed balance sheets reflect the funded status of the Pension Plan. The funded status of the Pension Plan is measured as the difference between the plan assets at fair value and the projected benefit obligation (PBO). The PBO represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. The measurement of the PBO is based on the Company’s estimates and actuarial valuations. The net pension liability is included in long-term accrued liabilities on the consolidated condensed balance sheets. Unrecognized differences between actual amounts and estimates based on actuarial assumptions are included in accumulated other comprehensive loss in our consolidated condensed balance sheets. The difference between actual amounts and estimates based on actuarial assumptions are recognized in other comprehensive income (loss) in the period in which they occur. The Pension Plan assumptions are evaluated annually and are updated as deemed necessary. The components of net periodic pension benefit are summarized as follows: Three Months Ended Six Months Ended (In thousands) November 30, November 30, November 30, November 30, Interest cost $ 513 $ 721 $ 1,025 $ 1,441 Expected return on assets (731) (741) (1,462) (1,481) Amortization of net loss 55 — 111 — Net periodic pension benefit $ (163) $ (20) $ (326) $ (40) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following tables summarize the changes in the accumulated balances for each component of accumulated other comprehensive income (loss), net of tax: (In thousands) Foreign Unrealized Loss on Other Total Balance at June 1, 2020 $ (26,343) $ (112,718) $ (14,319) $ (153,380) Other comprehensive income before reclassifications 26,946 10,842 — 37,788 Amounts reclassified from accumulated other comprehensive income (loss) — (358) — (358) Net current period other comprehensive income 26,946 10,484 — 37,430 Balance at August 31, 2020 603 (102,234) (14,319) (115,950) Other comprehensive income before reclassifications 2,960 15,942 — 18,902 Amounts reclassified from accumulated other comprehensive income (loss) — (359) — (359) Net current period other comprehensive income 2,960 15,583 — 18,543 Balance at November 30, 2020 $ 3,563 $ (86,651) $ (14,319) $ (97,407) (In thousands) Foreign Unrealized Loss on Other Total Balance at June 1, 2019 $ (15,022) $ (18,389) $ (5,741) $ (39,152) Other comprehensive income (loss) before 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 — 2,058 (83) 1,975 Balance at August 31, 2019 (8,298) (46,529) (5,824) (60,651) Other comprehensive income before reclassifications 1,413 22,761 — 24,174 Amounts reclassified from accumulated other comprehensive income (loss) — (358) — (358) Net current period other comprehensive income 1,413 22,403 — 23,816 Balance at November 30, 2019 $ (6,885) $ (24,126) $ (5,824) $ (36,835) The following table summarizes the reclassifications out of accumulated other comprehensive income (loss): Details about Accumulated Amount Reclassified from Affected Line in the Three Months Ended Six Months Ended (In thousands) November 30, November 30, November 30, November 30, Amortization of interest rate locks $ 474 $ 474 $ 948 $ 948 Interest expense Tax expense (115) (116) (231) (295) Income taxes Amortization of interest rate locks, net of tax $ 359 $ 358 $ 717 $ 653 Net income |
Segment Information
Segment Information | 6 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Cintas’ reportable operating segments are Uniform Rental and Facility Services and First Aid and Safety Services. The Uniform Rental and Facility Services reportable operating segment, consists of the rental and servicing of uniforms and other garments including flame resistant clothing, mats, mops and shop towels and other ancillary items. In addition to these rental items, restroom cleaning services and supplies and the sale of items from our catalogs to our customers on route are included within this reportable operating segment. The First Aid and Safety Services reportable operating segment consists of first aid and safety products and services. The remainder of Cintas’ operating segments, which consists of the Fire Protection Services operating segment and the Uniform Direct Sale operating segment, is included in All Other. Cintas evaluates the performance of each operating segment based on several factors of which the primary financial measures are operating segment revenue and income before income taxes. The accounting policies of the operating segments are the same as those described in Note 1 entitled Basis of Presentation. Information related to the operations of Cintas’ reportable operating segments and All Other is set forth below: (In thousands) Uniform Rental First Aid All Corporate (1) Total For the three months ended November 30, 2020 Revenue $ 1,410,488 $ 194,419 $ 152,141 $ — $ 1,757,048 Income (loss) before income taxes $ 315,609 $ 21,506 $ 15,757 $ (24,339) $ 328,533 For the three months ended November 30, 2019 Revenue $ 1,469,976 $ 169,668 $ 204,105 $ — $ 1,843,749 Income (loss) before income taxes $ 286,360 $ 24,640 $ 23,464 $ (25,894) $ 308,570 As of and for the six months ended November 30, 2020 Revenue $ 2,804,899 $ 398,899 $ 299,824 $ — $ 3,503,622 Income (loss) before income taxes $ 630,637 $ 40,033 $ 31,908 $ (48,825) $ 653,753 Total assets $ 6,732,076 $ 657,665 $ 361,837 $ 703,175 $ 8,454,753 As of and for the six months ended November 30, 2019 Revenue $ 2,924,503 $ 341,758 $ 388,627 $ — $ 3,654,888 Income (loss) before income taxes $ 555,371 $ 49,409 $ 35,830 $ (53,053) $ 587,557 Total assets $ 6,699,166 $ 537,740 $ 423,896 $ 226,535 $ 7,887,337 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Nov. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The consolidated condensed financial statements of Cintas Corporation (Cintas, the Company, we, us or our) included herein have been prepared by Cintas, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with United States generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations. While we believe that the disclosures are adequately presented, we suggest that these consolidated condensed financial statements be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020. A summary of our significant accounting policies is presented beginning on page 40 of that report. There have been no material changes in the accounting policies followed by Cintas during the current fiscal year other than the adoption of new accounting pronouncements discussed below. Interim results are subject to variations and are not necessarily indicative of the results of operations for a full fiscal year. In the opinion of management, adjustments (which include only normal recurring adjustments) necessary for a fair statement of the consolidated results of the interim periods shown have been made. |
Inventory | Inventories, net are valued at the lower of cost (first-in, first-out) or net realizable value.Inventories are recorded net of reserves for obsolete inventory of $52.3 million and $45.5 million at November 30, 2020 and May 31, 2020, respectively. The inventory obsolescence reserve is determined by specific identification, as well as an estimate based on Cintas' historical rates of obsolescence. Once a specific inventory item is written down to the lower of cost or net realizable value, a new cost basis has been established, and that inventory item cannot subsequently be marked up. |
New Accounting Pronouncements | Effective June 1, 2020, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In connection with recognizing credit losses on accounts receivable and other financial instruments, Cintas now uses a forward-looking expected loss model rather than the incurred loss model. Adoption of ASU 2016-13 requires using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align existing credit loss methodology with the new standard. The adoption of ASU 2016-13 did not have a material impact on the Company's consolidated condensed financial statements. No other new accounting pronouncement recently issued or newly effective had or is expected to have a material impact on Cintas' consolidated condensed financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Inventory | Inventory is comprised of the following: (In thousands) November 30, 2020 May 31, Raw materials $ 14,291 $ 18,661 Work in process 24,706 29,497 Finished goods 495,131 360,740 $ 534,128 $ 408,898 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Total Revenue Disaggregated by Operating Segment | The following table presents Cintas' total revenue disaggregated by operating segment: Three Months Ended Six Months Ended November 30, November 30, November 30, November 30, (In thousands) Revenue % Revenue % Revenue % Revenue % Uniform Rental and $ 1,410,488 80.3 % $ 1,469,976 79.7 % $ 2,804,899 80.0 % $ 2,924,503 80.0 % First Aid and Safety 194,419 11.0 % 169,668 9.2 % 398,899 11.4 % 341,758 9.4 % Fire Protection 104,636 6.0 % 106,735 5.8 % 212,701 6.1 % 216,861 5.9 % Uniform Direct Sales 47,505 2.7 % 97,370 5.3 % 87,123 2.5 % 171,766 4.7 % Total revenue $ 1,757,048 100.0 % $ 1,843,749 100.0 % $ 3,503,622 100.0 % $ 3,654,888 100.0 % |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Leases [Abstract] | |
Operating Lease Cost and Additional Lease Information | The following table provides supplemental information related to the Company's consolidated condensed statements of cash flows for the six months ended November 30: (In thousands) 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 24,565 $ 24,927 Operating lease right-of-use assets obtained in exchange for new and renewed $ 15,735 $ 24,770 Other information related to the operating lease right-of-use assets, net and operating lease liabilities was as follows: November 30, 2020 May 31, Weighted-average remaining lease term - operating leases 5.01 years 5.19 years Weighted-average discount rate - operating leases 2.58% 2.66% |
Contractual Future Minimum Lease Payments of Operating Lease Liabilities | The contractual future minimum lease payments of Cintas' operating lease liabilities by fiscal year are as follows as of November 30, 2020: (In thousands) 2021 (remaining six months) $ 24,445 2022 42,156 2023 33,459 2024 23,634 2025 16,798 Thereafter 30,754 Total payments 171,246 Less interest (11,070) Total present value of lease payments $ 160,176 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments Measured on a Recurring Basis | These financial instruments measured at fair value on a recurring basis are summarized below: As of November 30, 2020 (In thousands) Level 1 Level 2 Level 3 Fair Value Cash and cash equivalents $ 703,175 $ — $ — $ 703,175 Other assets, net: Interest rate lock agreements — 9,834 — 9,834 Total assets at fair value $ 703,175 $ 9,834 $ — $ 713,009 Long-term accrued liabilities: Interest rate lock agreements $ — $ 138,118 $ — $ 138,118 Total liabilities at fair value $ — $ 138,118 $ — $ 138,118 As of May 31, 2020 (In thousands) Level 1 Level 2 Level 3 Fair Value Cash and cash equivalents $ 145,402 $ — $ — $ 145,402 Other assets, net: Interest rate lock agreements — 1,546 — 1,546 Total assets at fair value $ 145,402 $ 1,546 $ — $ 146,948 Long-term accrued liabilities: Interest rate lock agreements $ — $ 165,686 $ — $ 165,686 Total liabilities at fair value $ — $ 165,686 $ — $ 165,686 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following tables set forth the computation of basic and diluted earnings per share using the two-class method for amounts attributable to Cintas’ common shares. Three Months Ended Six Months Ended Basic Earnings per Share from Continuing Operations (in thousands except per share data) November 30, 2020 November 30, 2019 November 30, 2020 November 30, 2019 Income from continuing operations $ 284,857 $ 246,443 $ 584,862 $ 497,255 Less: income from continuing operations 2,015 2,425 4,153 4,904 Income from continuing operations available $ 282,842 $ 244,018 $ 580,709 $ 492,351 Basic weighted average common shares outstanding 104,999 103,959 104,546 103,638 Basic earnings per share from continuing operations $ 2.69 $ 2.35 $ 5.55 $ 4.75 Three Months Ended Six Months Ended Diluted Earnings per Share from Continuing Operations (in thousands except per share data) November 30, 2020 November 30, 2019 November 30, 2020 November 30, 2019 Income from continuing operations $ 284,857 $ 246,443 $ 584,862 $ 497,255 Less: income from continuing operations allocated to participating securities 2,015 2,425 4,153 4,904 Income from continuing operations available to common shareholders $ 282,842 $ 244,018 $ 580,709 $ 492,351 Basic weighted average common shares outstanding 104,999 103,959 104,546 103,638 Effect of dilutive securities – employee stock options 2,982 3,376 3,010 3,476 Diluted weighted average common shares outstanding 107,981 107,335 107,556 107,114 Diluted earnings per share from continuing operations $ 2.62 $ 2.27 $ 5.40 $ 4.60 |
Goodwill, Service Contracts a_2
Goodwill, Service Contracts and Other Assets (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Goodwill, Service Contracts And Other Assets [Abstract] | |
Changes in Carrying Amount of Goodwill by Operating Segment | Goodwill (in thousands) Uniform Rental First Aid All Total Balance as of June 1, 2020 $ 2,513,041 $ 243,266 $ 113,713 $ 2,870,020 Goodwill acquired 1,568 2,165 562 4,295 Foreign currency translation 14,252 1,146 41 15,439 Balance as of November 30, 2020 $ 2,528,861 $ 246,577 $ 114,316 $ 2,889,754 |
Changes in the Carrying Amount of Service Contracts by Operating Segment | Service Contracts (in thousands) Uniform Rental First Aid All Total Balance as of June 1, 2020 $ 407,611 $ 19,805 $ 24,113 $ 451,529 Service contracts acquired 2,369 1,748 282 4,399 Service contracts amortization (24,224) (1,907) (2,497) (28,628) Foreign currency translation 3,541 82 — 3,623 Balance as of November 30, 2020 $ 389,297 $ 19,728 $ 21,898 $ 430,923 |
Information Regarding Service Contracts and Other Assets | Information regarding Cintas’ service contracts and other assets is as follows: As of November 30, 2020 (In thousands) Carrying Accumulated Net Service contracts $ 951,946 $ 521,023 $ 430,923 Capitalized contract costs (1) $ 421,993 $ 189,988 $ 232,005 Noncompete and consulting agreements 44,383 41,836 2,547 Other 69,652 23,710 45,942 Total other assets $ 536,028 $ 255,534 $ 280,494 As of May 31, 2020 (In thousands) Carrying Accumulated Net Service contracts $ 941,383 $ 489,854 $ 451,529 Capitalized contract costs (1) $ 375,912 $ 148,853 $ 227,059 Noncompete and consulting agreements 43,890 41,317 2,573 Other 54,239 23,113 31,126 Total other assets $ 474,041 $ 213,283 $ 260,758 |
Estimated Future Amortization Expense | As of November 30, 2020, the estimated future amortization expense for service contracts and other assets, excluding any future acquisitions and commissions to be earned, is as follows: Fiscal Year (In thousands) 2021 (remaining six months) $ 69,901 2022 130,427 2023 111,191 2024 99,082 2025 86,188 Thereafter 250,294 Total future amortization expense $ 747,083 |
Debt, Derivatives and Hedging_2
Debt, Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | Cintas' outstanding debt is summarized as follows: (In thousands) Interest Fiscal Year Fiscal Year November 30, May 31, Debt due within one year Senior notes 4.30 % 2012 2022 $ 250,000 $ — Debt issuance costs (128) — Total debt due within one year $ 249,872 $ — Debt due after one year Senior notes 4.30 % 2012 2022 $ — $ 250,000 Senior notes 2.90 % 2017 2022 650,000 650,000 Senior notes 3.25 % 2013 2023 300,000 300,000 Senior notes (1) 2.78 % 2013 2023 51,032 51,250 Senior notes (2) 3.11 % 2015 2025 51,469 51,637 Senior notes 3.70 % 2017 2027 1,000,000 1,000,000 Senior notes 6.15 % 2007 2037 250,000 250,000 Debt issuance costs (11,569) (13,182) Total debt due after one year $ 2,290,932 $ 2,539,705 (1) 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%. |
Pension Plans (Tables)
Pension Plans (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic pension benefit are summarized as follows: Three Months Ended Six Months Ended (In thousands) November 30, November 30, November 30, November 30, Interest cost $ 513 $ 721 $ 1,025 $ 1,441 Expected return on assets (731) (741) (1,462) (1,481) Amortization of net loss 55 — 111 — Net periodic pension benefit $ (163) $ (20) $ (326) $ (40) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following tables summarize the changes in the accumulated balances for each component of accumulated other comprehensive income (loss), net of tax: (In thousands) Foreign Unrealized Loss on Other Total Balance at June 1, 2020 $ (26,343) $ (112,718) $ (14,319) $ (153,380) Other comprehensive income before reclassifications 26,946 10,842 — 37,788 Amounts reclassified from accumulated other comprehensive income (loss) — (358) — (358) Net current period other comprehensive income 26,946 10,484 — 37,430 Balance at August 31, 2020 603 (102,234) (14,319) (115,950) Other comprehensive income before reclassifications 2,960 15,942 — 18,902 Amounts reclassified from accumulated other comprehensive income (loss) — (359) — (359) Net current period other comprehensive income 2,960 15,583 — 18,543 Balance at November 30, 2020 $ 3,563 $ (86,651) $ (14,319) $ (97,407) (In thousands) Foreign Unrealized Loss on Other Total Balance at June 1, 2019 $ (15,022) $ (18,389) $ (5,741) $ (39,152) Other comprehensive income (loss) before 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 — 2,058 (83) 1,975 Balance at August 31, 2019 (8,298) (46,529) (5,824) (60,651) Other comprehensive income before reclassifications 1,413 22,761 — 24,174 Amounts reclassified from accumulated other comprehensive income (loss) — (358) — (358) Net current period other comprehensive income 1,413 22,403 — 23,816 Balance at November 30, 2019 $ (6,885) $ (24,126) $ (5,824) $ (36,835) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss | The following table summarizes the reclassifications out of accumulated other comprehensive income (loss): Details about Accumulated Amount Reclassified from Affected Line in the Three Months Ended Six Months Ended (In thousands) November 30, November 30, November 30, November 30, Amortization of interest rate locks $ 474 $ 474 $ 948 $ 948 Interest expense Tax expense (115) (116) (231) (295) Income taxes Amortization of interest rate locks, net of tax $ 359 $ 358 $ 717 $ 653 Net income |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Information Related to Operating Segments | Information related to the operations of Cintas’ reportable operating segments and All Other is set forth below: (In thousands) Uniform Rental First Aid All Corporate (1) Total For the three months ended November 30, 2020 Revenue $ 1,410,488 $ 194,419 $ 152,141 $ — $ 1,757,048 Income (loss) before income taxes $ 315,609 $ 21,506 $ 15,757 $ (24,339) $ 328,533 For the three months ended November 30, 2019 Revenue $ 1,469,976 $ 169,668 $ 204,105 $ — $ 1,843,749 Income (loss) before income taxes $ 286,360 $ 24,640 $ 23,464 $ (25,894) $ 308,570 As of and for the six months ended November 30, 2020 Revenue $ 2,804,899 $ 398,899 $ 299,824 $ — $ 3,503,622 Income (loss) before income taxes $ 630,637 $ 40,033 $ 31,908 $ (48,825) $ 653,753 Total assets $ 6,732,076 $ 657,665 $ 361,837 $ 703,175 $ 8,454,753 As of and for the six months ended November 30, 2019 Revenue $ 2,924,503 $ 341,758 $ 388,627 $ — $ 3,654,888 Income (loss) before income taxes $ 555,371 $ 49,409 $ 35,830 $ (53,053) $ 587,557 Total assets $ 6,699,166 $ 537,740 $ 423,896 $ 226,535 $ 7,887,337 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Inventory (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | May 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 14,291 | $ 18,661 |
Work in process | 24,706 | 29,497 |
Finished goods | 495,131 | 360,740 |
Inventories, net | 534,128 | 408,898 |
Reserves for obsolete inventory | $ 52,300 | $ 45,500 |
Revenue Recognition - Total Rev
Revenue Recognition - Total Revenue Disaggregated by Operating Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,757,048 | $ 1,843,749 | $ 3,503,622 | $ 3,654,888 |
Uniform Rental and Facility Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,410,488 | 1,469,976 | 2,804,899 | 2,924,503 |
First Aid and Safety Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 194,419 | 169,668 | 398,899 | 341,758 |
Fire Protection Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 104,636 | 106,735 | 212,701 | 216,861 |
Uniform Direct Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 47,505 | $ 97,370 | $ 87,123 | $ 171,766 |
Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Revenue | Uniform Rental and Facility Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue | 80.30% | 79.70% | 80.00% | 80.00% |
Revenue | First Aid and Safety Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue | 11.00% | 9.20% | 11.40% | 9.40% |
Revenue | Fire Protection Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue | 6.00% | 5.80% | 6.10% | 5.90% |
Revenue | Uniform Direct Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue | 2.70% | 5.30% | 2.50% | 4.70% |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | May 31, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Deferred commissions, current | $ 78.7 | $ 78.7 | $ 76.2 | ||
Deferred commissions, noncurrent | 232 | 232 | $ 227.1 | ||
Amortization of deferred commissions | $ 20.7 | $ 19.2 | $ 41.1 | $ 38 | |
Revenue | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Percentage of revenue | 100.00% | 100.00% | 100.00% | 100.00% | |
Uniform Rental and Facility Services, First Aid and Safety Services and Fire Protection Services | Revenue | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Percentage of revenue | 95.00% | ||||
Uniform Direct Sales | Revenue | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Percentage of revenue | 5.00% |
Leases - Operating Lease Cost a
Leases - Operating Lease Cost and Additional Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | May 31, 2020 | |
Leases [Abstract] | |||||
Operating lease costs | $ 18,100 | $ 17,700 | $ 35,200 | $ 34,900 | |
Other information related to operating leases | |||||
Cash paid for amounts included in the measurement of operating lease liabilities | 24,565 | 24,927 | |||
Operating lease right-of-use assets obtained in exchange for new and renewed operating lease liabilities | $ 15,735 | $ 24,770 | |||
Weighted-average remaining lease term - operating leases | 5 years 3 days | 5 years 3 days | 5 years 2 months 8 days | ||
Weighted-average discount rate - operating leases | 2.58% | 2.58% | 2.66% |
Leases - Contractual Future Min
Leases - Contractual Future Minimum Lease Payments (Details) $ in Thousands | Nov. 30, 2020USD ($) |
Leases [Abstract] | |
2021 (remaining six months) | $ 24,445 |
2022 | 42,156 |
2023 | 33,459 |
2024 | 23,634 |
2025 | 16,798 |
Thereafter | 30,754 |
Total payments | 171,246 |
Less interest | (11,070) |
Total present value of lease payments | $ 160,176 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Instruments on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Nov. 30, 2020 | May 31, 2020 |
Fair value on a recurring basis | ||
Cash and cash equivalents | $ 703,175 | $ 145,402 |
Other assets, net: | ||
Total assets at fair value | 713,009 | 146,948 |
Long-term accrued liabilities: | ||
Total liabilities at fair value | 138,118 | 165,686 |
Interest rate lock agreements | ||
Other assets, net: | ||
Interest rate lock agreements | 9,834 | 1,546 |
Long-term accrued liabilities: | ||
Interest rate lock agreements | 138,118 | 165,686 |
Level 1 | ||
Fair value on a recurring basis | ||
Cash and cash equivalents | 703,175 | 145,402 |
Other assets, net: | ||
Total assets at fair value | 703,175 | 145,402 |
Long-term accrued liabilities: | ||
Total liabilities at fair value | 0 | 0 |
Level 1 | Interest rate lock agreements | ||
Other assets, net: | ||
Interest rate lock agreements | 0 | 0 |
Long-term accrued liabilities: | ||
Interest rate lock agreements | 0 | 0 |
Level 2 | ||
Fair value on a recurring basis | ||
Cash and cash equivalents | 0 | 0 |
Other assets, net: | ||
Total assets at fair value | 9,834 | 1,546 |
Long-term accrued liabilities: | ||
Total liabilities at fair value | 138,118 | 165,686 |
Level 2 | Interest rate lock agreements | ||
Other assets, net: | ||
Interest rate lock agreements | 9,834 | 1,546 |
Long-term accrued liabilities: | ||
Interest rate lock agreements | 138,118 | 165,686 |
Level 3 | ||
Fair value on a recurring basis | ||
Cash and cash equivalents | 0 | 0 |
Other assets, net: | ||
Total assets at fair value | 0 | 0 |
Long-term accrued liabilities: | ||
Total liabilities at fair value | 0 | 0 |
Level 3 | Interest rate lock agreements | ||
Other assets, net: | ||
Interest rate lock agreements | 0 | 0 |
Long-term accrued liabilities: | ||
Interest rate lock agreements | $ 0 | $ 0 |
Investments (Details)
Investments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | May 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Investments | $ 252,454,000 | $ 252,454,000 | $ 214,847,000 | ||
Cash surrender value of insurance policies | 227,000,000 | 227,000,000 | 192,700,000 | ||
Equity method investments | 22,300,000 | 22,300,000 | 19,000,000 | ||
Cost method investments | 3,200,000 | 3,200,000 | $ 3,100,000 | ||
Losses due to impairment | $ 0 | $ 0 | $ 0 | $ 0 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Basic earnings per share: | ||||
Income from continuing operations | $ 284,857 | $ 246,443 | $ 584,862 | $ 497,255 |
Less: income from continuing operations allocated to participating securities | 2,015 | 2,425 | 4,153 | 4,904 |
Income from continuing operations available to common shareholders | $ 282,842 | $ 244,018 | $ 580,709 | $ 492,351 |
Basic weighted average common shares outstanding (in shares) | 104,999 | 103,959 | 104,546 | 103,638 |
Basic earnings per share from continuing operations (in dollars per share) | $ 2.69 | $ 2.35 | $ 5.55 | $ 4.75 |
Diluted earnings per share: | ||||
Income from continuing operations | $ 284,857 | $ 246,443 | $ 584,862 | $ 497,255 |
Less: income from continuing operations allocated to participating securities | 2,015 | 2,425 | 4,153 | 4,904 |
Income from continuing operations available to common shareholders | $ 282,842 | $ 244,018 | $ 580,709 | $ 492,351 |
Basic weighted average common shares outstanding (in shares) | 104,999 | 103,959 | 104,546 | 103,638 |
Effect of dilutive securities - employee stock options (in shares) | 2,982 | 3,376 | 3,010 | 3,476 |
Diluted weighted average common shares outstanding (in shares) | 107,981 | 107,335 | 107,556 | 107,114 |
Diluted earnings per share from continuing operations (in dollars per share) | $ 2.62 | $ 2.27 | $ 5.40 | $ 4.60 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 26 Months Ended | ||||||
Jan. 08, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Jan. 08, 2021 | Oct. 29, 2019 | Oct. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||||||
Basic earnings per share from discontinued operations (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Diluted earnings per share from discontinued operations (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Options granted and excluded from the computation of diluted earnings per share (in shares) | 200,000 | 200,000 | 200,000 | 300,000 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock purchased under share buyback | $ 2,371,000 | $ 69,011,000 | $ 1,911,000 | $ 256,830,000 | ||||||
Shares acquired for employee payroll taxes on restricted stock awards (in shares) | 100,000 | 100,000 | 200,000 | 300,000 | ||||||
Shares acquired for employee payroll taxes on restricted stock awards, average price (in dollars per share) | $ 333.60 | $ 259.17 | $ 301.01 | $ 260.89 | ||||||
Shares acquired for employee payroll taxes on restricted stock awards | $ 2,400,000 | $ 300,000 | $ 71,400,000 | $ 65,700,000 | ||||||
Share Buyback Programs | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock purchased under share buyback (shares) | 0 | 0 | 0 | 800,000 | ||||||
Stock purchased under share buyback, average price (in dollars per share) | $ 230.66 | |||||||||
Stock purchased under share buyback | $ 193,100,000 | |||||||||
Share Buyback Programs | Subsequent Event | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock purchased under share buyback (shares) | 0 | |||||||||
October 30, 2018 Plan | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Share buyback program, authorized amount | $ 1,000,000,000 | |||||||||
October 30, 2018 Plan | Subsequent Event | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock purchased under share buyback (shares) | 4,300,000 | |||||||||
Stock purchased under share buyback, average price (in dollars per share) | $ 219.42 | |||||||||
Stock purchased under share buyback | $ 939,100,000 | |||||||||
October 29, 2019 Plan | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Share buyback program, authorized amount | $ 1,000,000,000 |
Goodwill, Service Contracts a_3
Goodwill, Service Contracts and Other Assets - Goodwill (Details) $ in Thousands | 6 Months Ended |
Nov. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 2,870,020 |
Goodwill acquired | 4,295 |
Foreign currency translation | 15,439 |
Ending balance | 2,889,754 |
Uniform Rental and Facility Services | |
Goodwill [Roll Forward] | |
Beginning balance | 2,513,041 |
Goodwill acquired | 1,568 |
Foreign currency translation | 14,252 |
Ending balance | 2,528,861 |
First Aid and Safety Services | |
Goodwill [Roll Forward] | |
Beginning balance | 243,266 |
Goodwill acquired | 2,165 |
Foreign currency translation | 1,146 |
Ending balance | 246,577 |
All Other | |
Goodwill [Roll Forward] | |
Beginning balance | 113,713 |
Goodwill acquired | 562 |
Foreign currency translation | 41 |
Ending balance | $ 114,316 |
Goodwill, Service Contracts a_4
Goodwill, Service Contracts and Other Assets - Service Contracts (Details) $ in Thousands | 6 Months Ended |
Nov. 30, 2020USD ($) | |
Service contracts [Roll Forward] | |
Beginning balance | $ 451,529 |
Service contracts acquired | 4,399 |
Service contracts amortization | (28,628) |
Foreign currency translation | 3,623 |
Ending balance | 430,923 |
Uniform Rental and Facility Services | |
Service contracts [Roll Forward] | |
Beginning balance | 407,611 |
Service contracts acquired | 2,369 |
Service contracts amortization | (24,224) |
Foreign currency translation | 3,541 |
Ending balance | 389,297 |
First Aid and Safety Services | |
Service contracts [Roll Forward] | |
Beginning balance | 19,805 |
Service contracts acquired | 1,748 |
Service contracts amortization | (1,907) |
Foreign currency translation | 82 |
Ending balance | 19,728 |
All Other | |
Service contracts [Roll Forward] | |
Beginning balance | 24,113 |
Service contracts acquired | 282 |
Service contracts amortization | (2,497) |
Foreign currency translation | 0 |
Ending balance | $ 21,898 |
Goodwill, Service Contracts a_5
Goodwill, Service Contracts and Other Assets - Information Regarding Service Contracts and Other Assets (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | May 31, 2020 |
Information regarding service contracts and other assets | ||
Service contracts, net | $ 430,923 | $ 451,529 |
Other assets, carrying amount | 536,028 | 474,041 |
Other assets, accumulated amortization | 255,534 | 213,283 |
Other assets, net | 280,494 | 260,758 |
Capitalized contract costs | ||
Information regarding service contracts and other assets | ||
Other assets, carrying amount | 421,993 | 375,912 |
Other assets, accumulated amortization | 189,988 | 148,853 |
Other assets, net | 232,005 | 227,059 |
Other assets current | 78,700 | 76,200 |
Noncompete and consulting agreements | ||
Information regarding service contracts and other assets | ||
Other assets, carrying amount | 44,383 | 43,890 |
Other assets, accumulated amortization | 41,836 | 41,317 |
Other assets, net | 2,547 | 2,573 |
Other | ||
Information regarding service contracts and other assets | ||
Other assets, carrying amount | 69,652 | 54,239 |
Other assets, accumulated amortization | 23,710 | 23,113 |
Other assets, net | 45,942 | 31,126 |
Service Contracts | ||
Information regarding service contracts and other assets | ||
Service contracts, carrying amount | 951,946 | 941,383 |
Service contracts, accumulated amortization | 521,023 | 489,854 |
Service contracts, net | $ 430,923 | $ 451,529 |
Goodwill, Service Contracts a_6
Goodwill, Service Contracts and Other Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Goodwill, Service Contracts And Other Assets [Abstract] | ||||
Amortization expense for service contracts and other assets | $ 35,400 | $ 35,300 | $ 70,500 | $ 69,900 |
2021 (remaining six months) | 69,901 | 69,901 | ||
2022 | 130,427 | 130,427 | ||
2023 | 111,191 | 111,191 | ||
2024 | 99,082 | 99,082 | ||
2025 | 86,188 | 86,188 | ||
Thereafter | 250,294 | 250,294 | ||
Total future amortization expense | $ 747,083 | $ 747,083 |
Debt, Derivatives and Hedging_3
Debt, Derivatives and Hedging Activities - Summary of Debt Outstanding (Details) - USD ($) | Nov. 30, 2020 | May 31, 2020 |
Debt due within one year | ||
Debt issuance costs | $ (128,000) | $ 0 |
Debt due within one year | 249,872,000 | 0 |
Debt due after one year | ||
Debt issuance costs | (11,569,000) | (13,182,000) |
Total debt due after one year | 2,290,932,000 | 2,539,705,000 |
Senior notes | Senior Notes, 4.30%, 2022 Maturity | ||
Debt due within one year | ||
Debt due within one year, gross | 250,000,000 | 0 |
Debt due after one year | ||
Debt due after one year, gross | $ 0 | 250,000,000 |
Stated interest rate | 4.30% | |
Senior notes | Senior Notes, 2.90%, 2022 Maturity | ||
Debt due after one year | ||
Debt due after one year, gross | $ 650,000,000 | 650,000,000 |
Stated interest rate | 2.90% | |
Senior notes | Senior Notes, 3.25%, 2023 Maturity | ||
Debt due after one year | ||
Debt due after one year, gross | $ 300,000,000 | 300,000,000 |
Stated interest rate | 3.25% | |
Senior notes | Senior Notes, 2.78%, 2023 Maturity | ||
Debt due after one year | ||
Debt due after one year, gross | $ 51,032,000 | 51,250,000 |
Stated interest rate | 2.78% | |
Senior notes | Senior Notes, 2.78%, 2023 Maturity | G&K Services | ||
Debt due after one year | ||
Stated interest rate | 3.73% | |
Face value | $ 50,000,000 | |
Senior notes | Senior Notes, 3.11%, 2025 Maturity | ||
Debt due after one year | ||
Debt due after one year, gross | $ 51,469,000 | 51,637,000 |
Stated interest rate | 3.11% | |
Senior notes | Senior Notes, 3.11%, 2025 Maturity | G&K Services | ||
Debt due after one year | ||
Stated interest rate | 3.88% | |
Face value | $ 50,000,000 | |
Senior notes | Senior Notes, 3.70%, 2027 Maturity | ||
Debt due after one year | ||
Debt due after one year, gross | $ 1,000,000,000 | 1,000,000,000 |
Stated interest rate | 3.70% | |
Senior notes | Senior Notes, 6.15%, 2037 Maturity | ||
Debt due after one year | ||
Debt due after one year, gross | $ 250,000,000 | $ 250,000,000 |
Stated interest rate | 6.15% |
Debt, Derivatives and Hedging_4
Debt, Derivatives and Hedging Activities - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | May 31, 2020 | May 31, 2019 | May 24, 2019 | May 23, 2019 | |
Debt Instrument [Line Items] | ||||||||
Debt, carrying value | $ 2,550,000,000 | $ 2,550,000,000 | $ 2,550,000,000 | |||||
Debt, fair value | 2,829,200,000 | 2,829,200,000 | 2,804,200,000 | |||||
Amortization of interest rate lock agreements - increase (decrease) to other comprehensive loss | (400,000) | $ (400,000) | (700,000) | $ (700,000) | ||||
Unrecognized inventory purchase commitments | 35,800,000 | 35,800,000 | 117,600,000 | |||||
Unrecognized inventory purchase commitments, additions | 25,600,000 | |||||||
Inventory purchases related to unrecognized commitments | 107,400,000 | |||||||
Treasury Lock Tranche 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Notional amount | 950,000,000 | |||||||
Interest rate lock asset | 9,800,000 | 9,800,000 | 1,500,000 | |||||
Interest rate lock liability | 38,300,000 | 38,300,000 | 53,800,000 | |||||
Treasury Lock Tranche 1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Notional amount | $ 500,000,000 | |||||||
Interest rate lock liability | 99,800,000 | 99,800,000 | 111,900,000 | |||||
Commercial paper | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt due within one year | 0 | 0 | 0 | |||||
Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility, maximum borrowing capacity with accordion feature | $ 1,000,000,000 | $ 600,000,000 | ||||||
Debt amendment, increase limit (up to) | 250,000,000 | |||||||
Revolving credit facility amount outstanding | $ 0 | $ 0 | $ 0 | |||||
Revolving credit facility | Term loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility, maximum borrowing capacity with accordion feature | $ 200,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | May 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Unrecognized tax benefits | $ 37.7 | $ 37.7 | $ 35.9 | ||
Effective tax rate | 13.30% | 20.10% | 10.50% | 15.40% |
Pension Plans (Details)
Pension Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Retirement Benefits [Abstract] | ||||
Interest cost | $ 513 | $ 721 | $ 1,025 | $ 1,441 |
Expected return on assets | (731) | (741) | (1,462) | (1,481) |
Amortization of net loss | 55 | 0 | 111 | 0 |
Net periodic pension benefit | $ (163) | $ (20) | $ (326) | $ (40) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance | $ 3,604,804 | $ 3,235,202 | $ 3,050,706 | $ 3,002,721 | $ 3,235,202 | $ 3,002,721 |
Other comprehensive income (loss) before reclassifications | 18,902 | 37,788 | 24,174 | (23,179) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (359) | (358) | (358) | (295) | ||
Other comprehensive income, net of tax expense (benefit) of $5,515, $7,462, $9,303 and $(2,203), respectively | 18,543 | 37,430 | 23,816 | (23,474) | 55,973 | 342 |
Balance | 3,597,960 | 3,604,804 | 3,104,970 | 3,050,706 | 3,597,960 | 3,104,970 |
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance | (833) | (833) | ||||
Foreign Currency | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance | 603 | (26,343) | (8,298) | (15,022) | (26,343) | (15,022) |
Other comprehensive income (loss) before reclassifications | 2,960 | 26,946 | 1,413 | 6,724 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||
Other comprehensive income, net of tax expense (benefit) of $5,515, $7,462, $9,303 and $(2,203), respectively | 2,960 | 26,946 | 1,413 | 6,724 | ||
Balance | 3,563 | 603 | (6,885) | (8,298) | 3,563 | (6,885) |
Foreign Currency | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance | 0 | 0 | ||||
Unrealized Income (Loss) on Interest Rate Hedges | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance | (102,234) | (112,718) | (46,529) | (18,389) | (112,718) | (18,389) |
Other comprehensive income (loss) before reclassifications | 15,942 | 10,842 | 22,761 | (29,903) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (359) | (358) | (358) | (295) | ||
Other comprehensive income, net of tax expense (benefit) of $5,515, $7,462, $9,303 and $(2,203), respectively | 15,583 | 10,484 | 22,403 | (30,198) | ||
Balance | (86,651) | (102,234) | (24,126) | (46,529) | (86,651) | (24,126) |
Unrealized Income (Loss) on Interest Rate Hedges | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance | 2,058 | 2,058 | ||||
Other | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance | (14,319) | (14,319) | (5,824) | (5,741) | (14,319) | (5,741) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||
Other comprehensive income, net of tax expense (benefit) of $5,515, $7,462, $9,303 and $(2,203), respectively | 0 | 0 | 0 | 0 | ||
Balance | (14,319) | (14,319) | (5,824) | (5,824) | (14,319) | (5,824) |
Other | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance | (83) | (83) | ||||
Total | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance | (115,950) | (153,380) | (60,651) | (39,152) | (153,380) | (39,152) |
Other comprehensive income, net of tax expense (benefit) of $5,515, $7,462, $9,303 and $(2,203), respectively | 18,543 | 37,430 | 23,816 | (23,474) | ||
Balance | $ (97,407) | $ (115,950) | $ (36,835) | (60,651) | $ (97,407) | (36,835) |
Total | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance | $ 1,975 | $ 1,975 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ 24,557 | $ 26,177 | $ 49,107 | $ 53,498 |
Income taxes | (43,676) | (62,127) | (68,891) | (90,302) |
Net income | 284,857 | 246,443 | 584,862 | 497,255 |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Unrealized Income (Loss) on Interest Rate Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income taxes | (115) | (116) | (231) | (295) |
Net income | 359 | 358 | 717 | 653 |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Unrealized Income (Loss) on Interest Rate Hedges | Interest Rate Locks | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ 474 | $ 474 | $ 948 | $ 948 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | May 31, 2020 | |
Segment Reporting Information | |||||
Revenue | $ 1,757,048 | $ 1,843,749 | $ 3,503,622 | $ 3,654,888 | |
Income (loss) before income taxes | 328,533 | 308,570 | 653,753 | 587,557 | |
Total assets | 8,454,753 | 7,887,337 | 8,454,753 | 7,887,337 | $ 7,669,885 |
Operating Segments | Uniform Rental and Facility Services | |||||
Segment Reporting Information | |||||
Revenue | 1,410,488 | 1,469,976 | 2,804,899 | 2,924,503 | |
Income (loss) before income taxes | 315,609 | 286,360 | 630,637 | 555,371 | |
Total assets | 6,732,076 | 6,699,166 | 6,732,076 | 6,699,166 | |
Operating Segments | First Aid and Safety Services | |||||
Segment Reporting Information | |||||
Revenue | 194,419 | 169,668 | 398,899 | 341,758 | |
Income (loss) before income taxes | 21,506 | 24,640 | 40,033 | 49,409 | |
Total assets | 657,665 | 537,740 | 657,665 | 537,740 | |
Operating Segments | All Other | |||||
Segment Reporting Information | |||||
Revenue | 152,141 | 204,105 | 299,824 | 388,627 | |
Income (loss) before income taxes | 15,757 | 23,464 | 31,908 | 35,830 | |
Total assets | 361,837 | 423,896 | 361,837 | 423,896 | |
Corporate | |||||
Segment Reporting Information | |||||
Revenue | 0 | 0 | 0 | 0 | |
Income (loss) before income taxes | (24,339) | (25,894) | (48,825) | (53,053) | |
Total assets | $ 703,175 | $ 226,535 | $ 703,175 | $ 226,535 |