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Significant Accounting Policies (Tables) | 12 Months Ended
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May 31, 2019
Accounting Policies [Abstract] |
Schedule of Inventory | Inventory is comprised of the following amounts at May 31:
(In thousands) | 2019 |  | 2018
Raw materials | $ | 17,812 |  |  | $ | 17,042 |
Work in process | 28,820 |  |  | 27,350 |
Finished goods | 287,957 |  |  | 235,955 |
| $ | 334,589 |  |  | $ | 280,347 |
Property and Equipment Estimated Useful Lives | Depreciation is calculated using the straight-line method primarily over the following estimated useful lives of the assets based on industry and Cintas specific experience, in years:
Buildings | 30 to 40
Building improvements | 5 to 20
Equipment | 3 to 10
Leasehold improvements | 2 to 15
Cintas' property and equipment is summarized as follows at May 31:
(In thousands) | 2019 |  | 2018
Land | $ | 189,828 |  |  | $ | 177,281 |
Buildings and improvements | 684,699 |  |  | 644,322 |
Equipment | 2,207,481 |  |  | 2,070,009 |
Leasehold improvements | 43,227 |  |  | 34,891 |
Construction in progress | 67,129 |  |  | 119,937 |
| 3,192,364 |  |  | 3,046,440 |
Less: accumulated depreciation | 1,761,679 |  |  | 1,663,710 |
Property and equipment, net | $ | 1,430,685 |  |  | $ | 1,382,730 |
Current Accrued Liabilities | Current accrued liabilities consist of the following at May 31:
(In thousands) | 2019 |  | 2018
General insurance liabilities | $ | 165,667 |  |  | $ | 163,400 |
Employee benefit related liabilities | 123,794 |  |  | 112,801 |
Taxes and related liabilities | 7,716 |  |  | 8,148 |
Accrued interest | 24,687 |  |  | 24,763 |
Other | 112,076 |  |  | 111,017 |
| $ | 433,940 |  |  | $ | 420,129 |
Impact of Adoption of ASU 2014-09 |
|  |  | Impacts of Adopting ASU 2014-09 |  |
(In thousands) | May 31, 2018 |  | Capitalization of Contract Costs |  | Assets With No Alternative Use |  | June 1, 2018
Assets |  |  |  |  |  |  |
Accounts receivable, net | $ | 804,583 |  |  | $ | — |  |  | $ | 13,426 |  |  | $ | 818,009 |
Inventories, net | 280,347 |  |  | — |  |  | (11,265 | ) |  | 269,082 |
Prepaid expenses and other current assets | 32,383 |  |  | 63,463 |  |  | — |  |  | 95,846 |
Total current assets | 1,977,932 |  |  | 63,463 |  |  | 2,161 |  |  | 2,043,556 |
Other assets, net | 29,315 |  |  | 187,503 |  |  | — |  |  | 216,818 |
Total assets | $ | 6,958,214 |  |  | $ | 250,966 |  |  | $ | 2,161 |  |  | $ | 7,211,341 |
Liabilities and Shareholders' Equity |  |  |  |  |  |  |
Deferred income taxes | $ | 352,581 |  |  | $ | 63,389 |  |  | $ | 546 |  |  | $ | 416,516 |
Total long-term liabilities | 3,165,831 |  |  | 63,389 |  |  | 546 |  |  | 3,229,766 |
Retained earnings | 5,837,827 |  |  | 187,577 |  |  | 1,615 |  |  | 6,027,019 |
Total shareholders' equity | 3,016,526 |  |  | 187,577 |  |  | 1,615 |  |  | 3,205,718 |
Total liabilities and shareholders' equity | $ | 6,958,214 |  |  | $ | 250,966 |  |  | $ | 2,161 |  |  | $ | 7,211,341 |
The impacts of adopting ASU 2014-09 on our fiscal 2019 consolidated financial statements are presented in the following tables:
| Fiscal year ended May 31, 2019
Consolidated Statement of Income (In thousands) | As Reported |  | Under Historical Guidance |  | Impact of Adopting ASU 2014-09
Revenue: |  |  |  |  |
Uniform rental and facility services | $ | 5,552,430 |  |  | $ | 5,557,056 |  |  | $ | (4,626 | )
Other | 1,339,873 |  |  | 1,337,954 |  |  | 1,919 |
Total revenue | 6,892,303 |  |  | 6,895,010 |  |  | (2,707 | )
Costs and expenses: |  |  |  |  |
Cost of other | 736,116 |  |  | 735,703 |  |  | 413 |
Selling and administrative expenses | 1,980,644 |  |  | 2,006,134 |  |  | (25,490 | )
Operating income | 1,133,534 |  |  | 1,111,164 |  |  | 22,370 |
Income before income taxes | 1,102,399 |  |  | 1,080,029 |  |  | 22,370 |
Income taxes | 219,764 |  |  | 214,306 |  |  | 5,458 |
Income from continuing operations | 882,635 |  |  | 865,723 |  |  | 16,912 |
Net income | $ | 884,981 |  |  | $ | 868,069 |  |  | $ | 16,912 |
Diluted earnings per share | $ | 7.99 |  |  | $ | 7.84 |  |  | $ | 0.15 |
| As of May 31, 2019
Consolidated Balance Sheet (In thousands) | As Reported |  | Under Historical Guidance |  | Impact of Adopting ASU 2014-09
Assets |  |  |  |  |
Accounts receivable, net | $ | 910,120 |  |  | $ | 894,301 |  |  | $ | 15,819 |
Inventories, net | 334,589 |  |  | 346,267 |  |  | (11,678 | )
Income taxes, current | 7,475 |  |  | 7,904 |  |  | (429 | )
Prepaid expenses and other current assets | 103,318 |  |  | 33,759 |  |  | 69,559 |
Total current assets | 2,236,280 |  |  | 2,163,009 |  |  | 73,271 |
Other assets, net | 240,315 |  |  | 38,518 |  |  | 201,797 |
Total assets | $ | 7,436,662 |  |  | $ | 7,161,594 |  |  | $ | 275,068 |
Liabilities and Shareholders' Equity |  |  |  |  |
Long-term liabilities: |  |  |  |  |
Deferred income taxes | $ | 438,179 |  |  | $ | 369,215 |  |  | $ | 68,964 |
Total long-term liabilities | 3,306,208 |  |  | 3,237,244 |  |  | 68,964 |
Retained earnings | 6,691,236 |  |  | 6,485,132 |  |  | 206,104 |
Total shareholders' equity | 3,002,721 |  |  | 2,796,617 |  |  | 206,104 |
Total liabilities and shareholders' equity | $ | 7,436,662 |  |  | $ | 7,161,594 |  |  | $ | 275,068 |

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