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Debt, Derivatives and Hedging Activities | 3 Months Ended
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Aug. 31, 2017
Debt Disclosure [Abstract] |
Debt, Derivatives and Hedging Activities | Debt, Derivatives and Hedging Activities Cintas' debt is summarized as follows:
(In thousands) | Interest Rate |  | Fiscal Year Issued |  | Fiscal Year Maturity |  | August 31, 2017 |  | May 31, 2017
Debt due within one year |  |  |  |  |  |  |  |  |
Senior notes | 6.13 | % |  | 2008 |  | 2018 |  | $ | 300,000 |  |  | $ | 300,000 |
Commercial paper | 1.40 | % | (1) | Various |  | Various |  | 7,500 |  |  | 50,500 |
Current portion of term loan | 2.00 | % | (2) | 2017 |  | 2018 |  | — |  |  | 12,500 |
Debt issuance costs |  |  |  |  |  |  | (50 | ) |  | (100 | )
Total debt due within one year |  |  |  |  |  |  | $ | 307,450 |  |  | $ | 362,900 |
Debt due after one year |  |  |  |  |  |  |  |  |
Senior notes | 4.30 | % |  | 2012 |  | 2022 |  | 250,000 |  |  | 250,000 |
Senior notes | 2.90 | % |  | 2017 |  | 2022 |  | 650,000 |  |  | 650,000 |
Senior notes | 3.25 | % |  | 2013 |  | 2023 |  | 300,000 |  |  | 300,000 |
Senior notes (3) | 2.78 | % |  | 2013 |  | 2023 |  | 52,446 |  |  | 52,554 |
Senior notes (4) | 3.11 | % |  | 2015 |  | 2025 |  | 52,560 |  |  | 52,645 |
Senior notes | 3.70 | % |  | 2017 |  | 2027 |  | 1,000,000 |  |  | 1,000,000 |
Senior notes | 6.15 | % |  | 2007 |  | 2037 |  | 250,000 |  |  | 250,000 |
Long-term portion of term loan | 2.00 | % | (2) | 2017 |  | 2022 |  | — |  |  | 237,500 |
Debt issuance costs |  |  |  |  |  |  | (21,334 | ) |  | (22,075 | )
Total debt due after one year |  |  |  |  |  |  | $ | 2,533,672 |  |  | $ | 2,770,624 |
(1) Variable rate debt instrument. The rate presented is the variable borrowing rate at August 31, 2017. (2) Variable rate debt instrument. The rate presented is the variable borrowing rate at May 31, 2017. (3) Cintas assumed these senior notes with the acquisition of G&K in the fourth quarter of fiscal 2017, and they were recorded at fair value. The interest rate shown above is the effective interest rate. The principal amount of these notes is $50.0 million with a stated interest rate of 3.73%. (4) 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, and term loan 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 August 31, 2017 were $2,862.5 million and $3,025.9 million, respectively, and as of May 31, 2017 were $3,156.0 million and $3,296.8 million, respectively. During the three months ended August 31, 2017, Cintas made payments of $43.0 million, net on commercial paper borrowings and paid off the term loan balance of $250.0 million with cash on hand. The credit agreement that supports our commercial paper program was amended on September 16, 2016. The amendment increased the capacity of the revolving credit facility from $450.0 million to $600.0 million and added a $250.0 million term loan facility. The existing term loan facility was paid in full as of August 31, 2017. 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 a new term loan of up to $250.0 million in the aggregate, subject to customary conditions. The maturity date of the agreement is September 15, 2021. As of August 31, 2017, there was $7.5 million of commercial paper outstanding with a weighted average interest rate of 1.40% and maturity dates less than 30 days and no borrowings on our revolving credit facility. As of May 31, 2017, there was $50.5 million of commercial paper outstanding with a weighted average interest rate of 1.24% and maturity dates less than 30 days and no borrowings on our revolving credit facility. The fair value of the commercial paper is estimated using Level 2 inputs based on general market prices. Given its short-term nature, the carrying value of the outstanding commercial paper approximates fair value. 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 2008, fiscal 2012, fiscal 2013 and fiscal 2017. The amortization of the cash flow hedges resulted in a decrease to other comprehensive income of $0.2 million for the three months ended August 31, 2017 and an increase to other comprehensive income of $0.4 million for the three months ended August 31, 2016. 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 debt covenants for all periods presented.

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- Definition Information about whether or not the entity is in compliance with debt covenants and the effects of noncompliance with debt covenants; and the entity's entire derivative instruments and hedging activities disclosure as a single block of text which describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising there from, and the amounts of and methodologies and assumptions used in determining the amounts of such items. + References No definition available. + Details
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