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Goodwill, Service Contracts and Other Assets

6 Months Ended

Nov. 30, 2011

Goodwill, Service Contracts and Other Assets

Goodwill, Service Contracts and Other Assets

5. Goodwill, Service Contracts and Other Assets

Changes in the carrying amount of goodwill and service contracts for the six months ended November 30, 2011, by operating segment, are as follows:

	Rental		First Aid,
	Uniforms &	Uniform	Safety &
	Ancillary	Direct	Fire	Document
	Products	Sales	Protection	Management	Total
Goodwill (in thousands)
Balance as of June 1, 2011	$943,177	$23,995	$192,944	$327,766	$1,487,882

Goodwill acquired/adjusted	980	—	(697)	(458)	(175)

Foreign currency translation	(985)	(33)	—	(3,054)	(4,072)

Balance as of November 30, 2011	$943,172	$23,962	$192,247	$324,254	$1,483,635


	Rental		First Aid,
	Uniforms &	Uniform	Safety &
	Ancillary	Direct	Fire	Document
	Products	Sales	Protection	Management	Total
Service Contracts (in thousands)
Balance as of June 1, 2011	$ 44,628	$ —	$ 35,878	$ 21,806	$ 102,312

Service contracts acquired	—	—	164	860	1,024

Service contracts amortization	(7,218)	—	(3,684)	(3,830)	(14,732)

Foreign currency translation	(1,381)	—	—	(562)	(1,943)

Balance as of November 30, 2011	$ 36,029	$ —	$ 32,358	$ 18,274	$ 86,661

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

	As of November 30, 2011
	Carrying	Accumulated
(In thousands)	Amount	Amortization	Net

Service contracts	$379,021	$292,360	$ 86,661

Noncompete and consulting agreements	$ 75,790	$ 67,330	$ 8,460
Investments(1)	88,469	—	88,469
Other	23,066	5,511	17,555

Total	$187,325	$ 72,841	$114,484


	As of May 31, 2011
	Carrying	Accumulated
(In thousands)	Amount	Amortization	Net

Service contracts	$379,967	$277,655	$102,312

Noncompete and consulting agreements	$ 76,091	$ 63,982	$ 12,109
Investments(1)	84,197	—	84,197
Other	23,135	4,690	18,445

Total	$183,423	$ 68,672	$114,751

(1) Investments at November 30, 2011, include the cash surrender value of insurance policies of $54.8 million, equity method investments of $30.8 million and cost method investments of $2.9 million. Investments at May 31, 2011, include the cash surrender value of insurance policies of $51.1 million, equity method investments of $30.2 million and cost method investments of $2.9 million.

Amortization expense was $20.1 million and $21.2 million for the six months ended November 30, 2011 and 2010, respectively. Estimated amortization expense, excluding any future acquisitions, for each of the next five years is $37.9 million, $21.1 million, $17.6 million, $14.8 million and $9.6 million, respectively.

Investments recorded using the cost method are evaluated for impairment on an annual basis or when indicators of impairment are identified. For the six months ended November 30, 2011 and 2010, no losses due to impairment were recorded.