XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Goodwill, Service Contracts and Other Assets | 9 Months Ended
--- | ---
Feb. 29, 2016
Goodwill, Service Contracts and Other Assets [Abstract] |
Goodwill, Service Contracts and Other Assets | Goodwill, Service Contracts and Other Assets Effective June 1, 2015, Cintas realigned its organizational structure and updated its reportable operating segments in light of certain changes in its business, including the acquisition of ZEE. Cintas’ updated reportable operating segments are Uniform Rental and Facility Services and First Aid and Safety Services. The remainder of Cintas’ business, which consists primarily of Fire Protection Services and its Direct Sale business, are included in All Other. For additional information regarding Cintas’ realignment and reportable operating segment determination, see Note 11 entitled Segment Information. As a result of Cintas’ segment realignment, the composition of Cintas’ reporting units for the evaluation of goodwill impairment also changed. Historically, Cintas’ reporting units were the same as the reportable operating segments, Rental Uniforms and Ancillary Products, Uniform Direct Sales and First Aid, Safety and Fire Protection Services. Effective June 1, 2015, Cintas identified five reporting units for purposes of evaluating goodwill impairment, Uniform Rental and Facility Services, First Aid and Safety Services, and three reporting units within All Other. As a result of the change in reporting units, Cintas was required to perform an interim impairment test on Goodwill at June 1, 2015. There was no impairment recorded as a result of the interim impairment test. As the composition of the reporting units changed, the Company allocated historical goodwill to the new reporting units based on a relative fair value allocation approach. Fair value of each reporting unit was determined using a combination of the market approach and the income approach. Under the market approach, fair value is based on revenue and earnings multiples for guideline public companies in the reporting unit's peer group. Under the income approach, value is dependent on the present value of net cash flows to be derived from the ownership. The relative fair value allocation approach yielded the following allocation of total goodwill as of June 1, 2015: Uniform Rental and Facility Services reportable operating segment goodwill of $943.9 million, First Aid and Safety Services reportable operating segment goodwill of $155.0 million and All Other goodwill of $96.7 million. Changes in the carrying amount of goodwill and service contracts for the nine months ended February 29, 2016, by reportable operating segment and All Other, are as follows:
Goodwill (in thousands) | Uniform Rental and Facility Services |  | First Aid and Safety Services |  | All Other |  | Total
Balance as of June 1, 2015 | $ | 943,909 |  |  | $ | 154,954 |  |  | $ | 96,749 |  |  | $ | 1,195,612 |
Goodwill acquired | 9,066 |  |  | 81,304 |  |  | 203 |  |  | 90,573 |
Foreign currency translation | (1,163 | ) |  | (535 | ) |  | (53 | ) |  | (1,751 | )
Balance as of February 29, 2016 | $ | 951,812 |  |  | $ | 235,723 |  |  | $ | 96,899 |  |  | $ | 1,284,434 |
Service Contracts (in thousands) | Uniform Rental and Facility Services |  | First Aid and Safety Services |  | All Other |  | Total
Balance as of June 1, 2015 | $ | 6,677 |  |  | $ | 1,576 |  |  | $ | 34,181 |  |  | $ | 42,434 |
Service contracts acquired | 18,473 |  |  | 34,000 |  |  | 2,730 |  |  | 55,203 |
Service contracts amortization | (3,623 | ) |  | (2,414 | ) |  | (5,185 | ) |  | (11,222 | )
Foreign currency translation | — |  |  | (35 | ) |  | — |  |  | (35 | )
Balance as of February 29, 2016 | $ | 21,527 |  |  | $ | 33,127 |  |  | $ | 31,726 |  |  | $ | 86,380 |
Information regarding Cintas’ service contracts and other assets is as follows:
| As of February 29, 2016
(In thousands) | Carrying Amount |  | Accumulated Amortization |  | Net
Service contracts | $ | 394,326 |  |  | $ | 307,946 |  |  | $ | 86,380 |
Noncompete and consulting agreements | $ | 42,321 |  |  | $ | 40,754 |  |  | $ | 1,567 |
Other | 25,721 |  |  | 9,003 |  |  | 16,718 |
Total other assets | $ | 68,042 |  |  | $ | 49,757 |  |  | $ | 18,285 |
| As of May 31, 2015
(In thousands) | Carrying Amount |  | Accumulated Amortization |  | Net
Service contracts | $ | 340,816 |  |  | $ | 298,382 |  |  | $ | 42,434 |
Noncompete and consulting agreements | $ | 41,828 |  |  | $ | 40,379 |  |  | $ | 1,449 |
Other | 23,595 |  |  | 7,550 |  |  | 16,045 |
Total other assets | $ | 65,423 |  |  | $ | 47,929 |  |  | $ | 17,494 |
Amortization expense for continuing operations was $4.4 million and $3.4 million for the three months ended February 29, 2016 and February 28, 2015, respectively. Amortization expense for continuing operations was $12.1 million and $10.3 million for the nine months ended February 29, 2016 and February 28, 2015, respectively. Estimated amortization expense for continuing operations, excluding any future acquisitions, for each of the next five full fiscal years is $15.6 million, $13.0 million, $12.2 million, $11.6 million and $11.1 million, respectively.

X
- Definition -- None. No documentation exists for this element. -- + References No definition available. + Details
Name: | ctas_GoodwillServiceContractsAndOtherAssetsAbstract
Namespace Prefix: | ctas_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition This element encapsulates entire disclosures pertaining to goodwill, service contracts and other assets. + References No definition available. + Details
Name: | ctas_GoodwillServiceContractsAndOtherAssetsDisclosureTextBlock
Namespace Prefix: | ctas_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration