Exhibit 99
FOR IMMEDIATE RELEASE                             
December 17, 2019


Cintas Corporation Announces
Fiscal 2020 Second Quarter Results


CINCINNATI, December 17, 2019 -- Cintas Corporation (Nasdaq: CTAS) today reported results for its fiscal 2020 second quarter ended November 30, 2019.

Revenue for the second quarter of fiscal 2020 was $1.84 billion, an increase of 7.3% over last year’s second quarter. The organic revenue growth rate, which adjusts for the impacts of acquisitions and foreign currency exchange rate fluctuations, was also 7.3%. The organic revenue growth rate for the Uniform Rental and Facility Services operating segment was 5.8%, and the organic revenue growth rate for the First Aid and Safety Services operating segment was 10.6%.

Gross margin for the second quarter of fiscal 2020 of $852.4 million increased 10.0% from last year’s second quarter. Gross margin as a percentage of revenue was 46.2% for the second quarter of fiscal 2020 compared to 45.1% in the second quarter of fiscal 2019. Uniform Rental and Facility Services operating segment gross margin as a percentage of revenue improved 130 basis points from last year’s second quarter to 46.6%, and the First Aid and Safety Services operating segment gross margin as a percentage of revenue improved 40 basis points to 48.4%.

Operating income for the second quarter of fiscal 2020 of $334.5 million increased 21.3% from last year’s second quarter operating income of $275.6 million. Operating income as a percentage of revenue was 18.1% in the second quarter of fiscal 2020 compared to 16.0% in the second quarter of fiscal 2019. Operating income in the second quarter of fiscal 2019 was impacted by non-recurring integration expenses related to the G&K Services, Inc. (G&K) acquisition of $7.8 million, or 50 basis points.

Net income from continuing operations was $246.4 million for the second quarter of fiscal 2020, and earnings per diluted share (EPS) from continuing operations were $2.27. Net income from continuing operations was $243.0 million in the second quarter of fiscal 2019, and EPS from continuing operations were $2.18. Fiscal 2019 second quarter EPS from continuing operations included a one-time gain on the sale of a cost method investment of $0.47 and non-recurring G&K integration expenses of $0.05.

The following table provides a comparison of fiscal 2020 second quarter EPS to fiscal 2019 second quarter EPS:
 
Three Months Ended
 
November 30,
2019
 
November 30,
2018
 
Growth vs.
Fiscal 2019
 
 
 
 
 
 
EPS - continuing operations
$
2.27

 
$
2.18

 
 
G&K integration expenses
—

 
0.05

 
 
One-time gain on sale of investment
—

 
(0.47
)
 
 
EPS excluding above items
$
2.27

 
$
1.76

 
29.0%
 
 
 
 
 
 
 
Six Months Ended
 
November 30,
2019
 
November 30,
2018
 
Growth vs.
Fiscal 2019
 
 
 
 
 
 
EPS - continuing operations
$
4.60

 
$
4.07

 
 
G&K integration expenses
—

 
0.09

 
 
One-time gain on sale of investment
—

 
(0.47
)
 
 
EPS excluding above items
$
4.60

 
$
3.69

 
24.7%





Scott D. Farmer, Cintas' Chairman and Chief Executive Officer, stated, "We are pleased with our second quarter and year-to-date performance. The Company is on pace to achieve another year of strong growth in revenue, earnings and cash flow generation. I thank our employee-partners for the consistently high execution that helps get our customers Ready for the Workday™.”

Mr. Farmer added, “Earlier this month, on December 6th, we paid an annual dividend of $2.55 per share, an increase of 24.4% over last year’s annual dividend. We have increased the annual dividend for 36 consecutive years. In the past 10 years, the annual dividend per share increased at a compound annual growth rate of 18.2%.”

Mr. Farmer concluded, “We are increasing our fiscal 2020 financial guidance. We are raising our annual revenue expectations from a range of $7.28 billion to $7.32 billion to a range of $7.29 billion to $7.33 billion and EPS from a range of $8.47 to $8.57 to a range of $8.65 to $8.75. This financial guidance does not include any future share buybacks. It does incorporate the impact of having one less workday in fiscal 2020 compared to fiscal 2019.”

The following table provides a comparison of fiscal 2020 revenue and EPS guidance to fiscal 2019 actual results:

Fiscal
 2019
 
Fiscal 2020
Low End
of Range
 
Growth
vs.
 2019
 
Fiscal 2020
High End
of Range
 
Growth
vs.
 2019
 
 
 
 
 
 
 
 
 
 
Fiscal 2020 Revenue Guidance
 
 
 
 
 
 
 
 
 
($s in millions)
 
 
 
 
 
 
 
 
 
Revenue guidance
$
6,892.3

 
$
7,290.0

 
5.8%
 
$
7,330.0

 
6.4%
 
 
 
 
 
 
 
 
 
 
     Growth on constant workday basis (1)
 
 
 
 
6.2%
 
 
 
6.8%
 
 
 
 
 
 
 
 
 
 
Fiscal 2020 Earnings Per Share Guidance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EPS - continuing operations
$
7.97

 
$
8.65

 
 
 
$
8.75

 
 
G&K integration expenses
0.10

 
—

 
 
 
—

 
 
One-time gain on sale of investment
(0.47
)
 
—

 
 
 
—

 
 
 
 
 
 
 
 
 
 
 
 
EPS guidance (2)
$
7.60

 
$
8.65

 
13.8%
 
$
8.75

 
15.1%
(1)
Fiscal 2020 contains one less workday than fiscal 2019. One less workday negatively impacts revenue growth by 40 basis points.
(2) 
One less workday negatively impacts fiscal 2020 EPS guidance by about $0.06 and EPS growth by about 90 basis points.





About Cintas
Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing a wide range of products and services that enhance our customers’ image and help keep their facilities and employees clean, safe and looking their best. With products and services including uniforms, floor care, restroom supplies, first aid and safety products, fire extinguishers and testing, and safety and compliance training, Cintas helps customers get Ready for the Workday™. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and the Nasdaq-100 Index.


CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements.  Forward-looking statements may be identified by words such as “estimates,” “anticipates,” “predicts,” “projects,” “plans,” “expects,” “intends,” “target,” “forecast,” “believes,” “seeks,” “could,” “should,” “may” and “will” or the negative versions thereof and similar words, terms and expressions and by the context in which they are used. Such statements are based upon current expectations of Cintas and speak only as of the date made. You should not place undue reliance on any forward-looking statement. We cannot guarantee that any forward-looking statement will be realized. These statements are subject to various risks, uncertainties, potentially inaccurate assumptions and other factors that could cause actual results to differ from those set forth in or implied by this Press Release. Factors that might cause such a difference include, but are not limited to, risks inherent with the G&K transaction in the achievement of cost synergies and the timing thereof, including whether the transaction will be accretive and within the expected timeframe and the actual amounts of future integration expenses; the possibility of greater than anticipated operating costs including energy and fuel costs; lower sales volumes; loss of customers due to outsourcing trends; the performance and costs of integration of acquisitions, including G&K; fluctuations in costs of materials and labor including increased medical costs; costs and possible effects of union organizing activities; failure to comply with government regulations concerning employment discrimination, employee pay and benefits and employee health and safety; the effect on operations of exchange rate fluctuations, tariffs and other political, economic and regulatory risks; uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation; the cost, results and ongoing assessment of internal controls for financial reporting required by the Sarbanes-Oxley Act of 2002; the effect of new accounting pronouncements; costs of our SAP system implementation; disruptions caused by the inaccessibility of computer systems data, including cybersecurity risks; the initiation or outcome of litigation, investigations or other proceedings; higher assumed sourcing or distribution costs of products; the disruption of operations from catastrophic or extraordinary events; the amount and timing of repurchases of our common stock, if any; changes in federal and state tax and labor laws; and the reactions of competitors in terms of price and service. Cintas undertakes no obligation to publicly release any revisions to any forward-looking statements or to otherwise update any forward-looking statements whether as a result of new information or to reflect events, circumstances or any other unanticipated developments arising after the date on which such statements are made. A further list and description of risks, uncertainties and other matters can be found in our Annual Report on Form 10-K for the year ended May 31, 2019 and in our reports on Forms 10-Q and 8-K. The risks and uncertainties described herein are not the only ones we may face. Additional risks and uncertainties presently not known to us or that we currently believe to be immaterial may also harm our business.


For additional information, contact:
J. Michael Hansen, Executive Vice President and Chief Financial Officer - 513-972-2079
Paul F. Adler, Vice President and Treasurer - 513-972-4195






Cintas Corporation
Consolidated Condensed Statements of Income
(Unaudited)
(In thousands except per share data)

 
Three Months Ended
 
November 30,
2019
 
November 30,
2018
 
% 
Change
Revenue:
 

 
 

 
 
Uniform rental and facility services
$
1,469,976

 
$
1,390,778

 
5.7%
Other
373,773

 
327,490

 
14.1%
Total revenue
1,843,749

 
1,718,268

 
7.3%
 
 
 
 
 
 
Costs and expenses:
 

 
 

 
 
Cost of uniform rental and facility services
784,937

 
761,119

 
3.1%
Cost of other
206,421

 
181,991

 
13.4%
Selling and administrative expenses
517,927

 
491,671

 
5.3%
G&K Services, Inc. integration expenses
—

 
7,847

 
(100.0)%
 
 
 
 
 
 
Operating income
334,464

 
275,640

 
21.3%
 
 
 
 
 
 
Gain on sale of a cost method investment
—

 
69,373

 
(100.0)%
 
 
 
 
 
 
Interest income
(283
)
 
(391
)
 
(27.6)%
Interest expense
26,177

 
24,880

 
5.2%
 
 
 
 
 
 
Income before income taxes
308,570

 
320,524

 
(3.7)%
Income taxes
62,127

 
77,530

 
(19.9)%
Income from continuing operations
246,443

 
242,994

 
1.4%
(Loss) income from discontinued operations, net of tax
(323
)
 
19

 
(1,800.0)%
Net income
$
246,120

 
$
243,013

 
1.3%
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
Continuing operations
$
2.35

 
$
2.25

 
4.4%
Discontinued operations
0.00

 
0.00

 
—%
Basic earnings per share
$
2.35

 
$
2.25

 
4.4%
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
Continuing operations
$
2.27

 
$
2.18

 
4.1%
Discontinued operations
0.00

 
0.00

 
—%
Diluted earnings per share
$
2.27

 
$
2.18

 
4.1%
 
 
 
 
 
 
Weighted average number of shares outstanding
103,959

 
106,475

 
 
Diluted average number of shares outstanding
107,335

 
109,874

 
 









Cintas Corporation
Consolidated Condensed Statements of Income
(Unaudited)
(In thousands except per share data)

 
Six Months Ended
 
November 30,
2019
 
November 30,
2018
 
% 
Change
Revenue:
 

 
 

 
 
Uniform rental and facility services
$
2,924,503

 
$
2,765,716

 
5.7%
Other
730,385

 
650,527

 
12.3%
Total revenue
3,654,888

 
3,416,243

 
7.0%
 
 
 
 
 
 
Costs and expenses:
 

 
 

 
 
Cost of uniform rental and facility services
1,553,613

 
1,507,572

 
3.1%
Cost of other
399,742

 
358,801

 
11.4%
Selling and administrative expenses
1,060,923

 
996,305

 
6.5%
G&K Services, Inc. integration expenses
—

 
12,697

 
(100.0)%
 
 
 
 
 
 
Operating income
640,610

 
540,868

 
18.4%
 
 
 
 
 
 
Gain on sale of a cost method investment
—

 
69,373

 
(100.0)%
 
 
 
 
 
 
Interest income
(445
)
 
(887
)
 
(49.8)%
Interest expense
53,498

 
49,184

 
8.8%
 
 
 
 
 
 
Income before income taxes
587,557

 
561,944

 
4.6%
Income taxes
90,302

 
106,403

 
(15.1)%
Income from continuing operations
497,255

 
455,541

 
9.2%
Loss from discontinued operations, net of tax
(323
)
 
(13
)
 
2,384.6%
Net income
$
496,932

 
$
455,528

 
9.1%
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
Continuing operations
$
4.75

 
$
4.21

 
12.8%
Discontinued operations
0.00

 
0.00

 
—%
Basic earnings per share
$
4.75

 
$
4.21

 
12.8%
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
Continuing operations
$
4.60

 
$
4.07

 
13.0%
Discontinued operations
0.00

 
0.00

 
—%
Diluted earnings per share
$
4.60

 
$
4.07

 
13.0%
 
 
 
 
 
 
Weighted average number of shares outstanding
103,638

 
106,652

 
 
Diluted average number of shares outstanding
107,114

 
110,257

 
 





CINTAS CORPORATION SUPPLEMENTAL DATA

Gross Margin Results
 
Three Months Ended
 
November 30,
2019
 
November 30,
2018
 
 
 
 
Uniform rental and facility services gross margin
46.6%
 
45.3%
Other gross margin
44.8%
 
44.4%
Total gross margin
46.2%
 
45.1%
Net income margin, continuing operations
13.4%
 
14.1%
 
 
 
 
 
Six Months Ended
 
November 30,
2019
 
November 30,
2018
 
 
 
 
Uniform rental and facility services gross margin
46.9%
 
45.5%
Other gross margin
45.3%
 
44.8%
Total gross margin
46.6%
 
45.4%
Net income margin, continuing operations
13.6%
 
13.3%

Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure

The press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. To supplement its consolidated condensed financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), the Company provides the additional non-GAAP financial measures of earnings per diluted share, cash flow and workday adjusted revenue growth. The Company believes that these non-GAAP financial measures are appropriate to enhance understanding of its past performance as well as prospects for future performance. A reconciliation of the differences between these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP are shown in the tables within the narrative of the press release or below.

Earnings Per Share Results
 
Three Months Ended
 
November 30,
2019
 
November 30,
2018
 
Growth vs.
 Fiscal 2019
EPS - continuing operations
$
2.27

 
$
2.18

 
 
G&K Services, Inc. integration expenses
—

 
0.05

 
 
One-time gain on sale of investment
—

 
(0.47
)
 
 
EPS excluding above items
$
2.27

 
$
1.76

 
29.0%
 
 
 
 
 
 
 
Six Months Ended
 
November 30,
2019
 
November 30,
2018
 
Growth vs.
 Fiscal 2019
EPS - continuing operations
$
4.60

 
$
4.07

 
 
G&K Services, Inc. integration expenses
—

 
0.09

 
 
One-time gain on sale of investment
—

 
(0.47
)
 
 
EPS excluding above items
$
4.60

 
$
3.69

 
24.7%






Computation of Free Cash Flow
 
Six Months Ended
 
November 30,
2019
 
November 30,
2018
Net cash provided by operations
$
571,351

 
$
344,567

Capital expenditures
(126,167
)
 
(137,614
)
Free cash flow
$
445,184

 
$
206,953

Management uses free cash flow to assess the financial performance of the Company. Management believes that free cash flow is useful to investors because it relates the operating cash flow of the Company to the capital that is spent to continue, improve and grow business operations.

Computation of Growth on a Constant Workday Basis
 
Three Months Ended
 
Six Months Ended
 
November 30,
2019
 
November 30,
2018
 
Growth %
 
November 30,
2019
 
November 30,
2018
 
Growth %
 
A
 
B
 
G
 
I
 
J
 
O
Revenue
$
1,843,749

 
$
1,718,268

 
7.3%
 
$
3,654,888

 
$
3,416,243

 
7.0%
 
 
 
 
 
G=(A-B)/B
 
 
 
 
 
O=(I-J)/J
 
C
 
D
 
 
 
K
 
L
 
 
Workdays in the period
65
 
65
 
 
 
130
 
131
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
E
 
F
 
H
 
M
 
N
 
P
Revenue adjusted for
   workday difference
$
1,843,749

 
$
1,718,268

 
7.3%
 
$
3,683,003

 
$
3,416,243

 
7.8%
 
E=(A/C)*D
 
F=(B/D)*D
 
H=(E-F)/F
 
M=(I/K)*L
 
N=(J/L)*L
 
P=(M-N)/N

 
Fiscal
2019
 
Fiscal 2020
Low End
of Range
 
Growth
vs.
2019
 
Fiscal 2020
High End
of Range
 
Growth
vs.
2019
 
 
 
 
 
 
 
 
 
 
Fiscal 2020 Revenue Guidance
 
 
 
 
 
 
 
 
 
($s in millions)
A
 
B
 
C
 
D
 
E
Revenue guidance
$
6,892.3

 
$
7,290.0

 
5.8%
 
$
7,330.0

 
6.4%
 
 
 
 
 
C=(B-A)/A
 
 
 
E=(D-A)/A
 
F
 
G
 
 
 
G
 
 
Workdays in the period
261
 
260
 
 
 
260
 
 
 
H
 
I
 
J
 
K
 
L
Revenue guidance adjusted for
   workday difference
$
6,892.3

 
$
7,318.0

 
6.2%
 
$
7,358.2

 
6.8%
 
H=(A/F)*F
 
I=(B/G)*F
 
J=(I-H)/H
 
K=(D/G)*F
 
L=(K-H)/H
Management believes that workday adjusted revenue growth is valuable to investors because it reflects the revenue performance compared to a prior period with the same number of revenue generating days.






SUPPLEMENTAL SEGMENT DATA
 
Uniform Rental
and Facility Services
 
First Aid
 and Safety Services
 
All
Other
 
Corporate
 
Total
 
 
 
 
 
 
 
 
 
 
For the three months ended November 30, 2019
 
 
 
 
 
 
 
 
Revenue
$
1,469,977

 
$
169,667

 
$
204,105

 
$
—

 
$
1,843,749

Gross margin
$
685,040

 
$
82,074

 
$
85,277

 
$
—

 
$
852,391

Selling and administrative expenses
$
398,680

 
$
57,434

 
$
61,813

 
$
—

 
$
517,927

Interest income
$
—

 
$
—

 
$
—

 
$
(283
)
 
$
(283
)
Interest expense
$
—

 
$
—

 
$
—

 
$
26,177

 
$
26,177

Income (loss) before income taxes
$
286,360

 
$
24,640

 
$
23,464

 
$
(25,894
)
 
$
308,570

 
 
 
 
 
 
 
 
 
 
For the three months ended November 30, 2018
 
 
 
 
 
 
 
 
Revenue
$
1,390,778

 
$
153,348

 
$
174,142

 
$
—

 
$
1,718,268

Gross margin
$
629,659

 
$
73,670

 
$
71,829

 
$
—

 
$
775,158

Selling and administrative expenses
$
378,921

 
$
52,342

 
$
60,408

 
$
—

 
$
491,671

G&K Services, Inc. integration
   expenses
$
7,847

 
$
—

 
$
—

 
$
—

 
$
7,847

Gain on sale of a cost method
   investment
$
—

 
$
—

 
$
—

 
$
69,373

 
$
69,373

Interest income
$
—

 
$
—

 
$
—

 
$
(391
)
 
$
(391
)
Interest expense
$
—

 
$
—

 
$
—

 
$
24,880

 
$
24,880

Income before income taxes
$
242,891

 
$
21,328

 
$
11,421


$
44,884

 
$
320,524

 
 
 
 
 
 
 
 
 
 
For the six months ended November 30, 2019
 
 
 
 
 
 
 
 
Revenue
$
2,924,504

 
$
341,757

 
$
388,627

 
$
—

 
$
3,654,888

Gross margin
$
1,370,891

 
$
166,361

 
$
164,281

 
$
—

 
$
1,701,533

Selling and administrative expenses
$
815,520

 
$
116,952

 
$
128,451

 
$
—

 
$
1,060,923

Interest income
$
—

 
$
—

 
$
—

 
$
(445
)
 
$
(445
)
Interest expense
$
—

 
$
—

 
$
—

 
$
53,498

 
$
53,498

Income (loss) before income taxes
$
555,371

 
$
49,409

 
$
35,830

 
$
(53,053
)
 
$
587,557

 
 
 
 
 
 
 
 
 
 
For the six months ended November 30, 2018
 
 
 
 
 
 
 
 
Revenue
$
2,765,716

 
$
306,765

 
$
343,762

 
$
—

 
$
3,416,243

Gross margin
$
1,258,144

 
$
147,155

 
$
144,571

 
$
—

 
$
1,549,870

Selling and administrative expenses
$
771,022

 
$
103,844

 
$
121,439

 
$
—

 
$
996,305

G&K Services, Inc. integration
   expenses
$
12,697

 
$
—

 
$
—

 
$
—

 
$
12,697

Gain on sale of a cost method
   investment
$
—

 
$
—

 
$
—

 
$
69,373

 
$
69,373

Interest income
$
—

 
$
—

 
$
—

 
$
(887
)
 
$
(887
)
Interest expense
$
—

 
$
—

 
$
—

 
$
49,184

 
$
49,184

Income before income taxes
$
474,425

 
$
43,311

 
$
23,132

 
$
21,076

 
$
561,944





Cintas Corporation
Consolidated Condensed Balance Sheets
(In thousands except per share data)

 
November 30,
2019
 
May 31,
2019
 
(Unaudited)
 
 
ASSETS
 
 
 

Current assets:
 

 
 

Cash and cash equivalents
$
226,535

 
$
96,645

Accounts receivable, net
949,122

 
910,120

Inventories, net
348,304

 
334,589

Uniforms and other rental items in service
817,859

 
784,133

Income taxes, current
24,878

 
7,475

Prepaid expenses and other current assets
123,589

 
103,318

Total current assets
2,490,287

 
2,236,280

 
 
 
 
Property and equipment, net
1,425,584

 
1,430,685

 
 
 
 
Investments
218,873

 
192,346

Goodwill
2,852,801

 
2,842,441

Service contracts, net
469,933

 
494,595

Operating lease right-of-use assets, net
169,233

 
—

Other assets, net
260,626

 
240,315

 
$
7,887,337

 
$
7,436,662

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 

 
 

Current liabilities:
 

 
 

Accounts payable
$
254,611

 
$
226,020

Accrued compensation and related liabilities
124,349

 
155,509

Accrued liabilities
674,240

 
433,940

Operating lease liabilities, current
44,263

 
—

Debt due within one year
199,788

 
312,264

Total current liabilities
1,297,251

 
1,127,733

 
 
 
 
Long-term liabilities:
 

 
 

Debt due after one year
2,538,606

 
2,537,507

Deferred income taxes
443,857

 
438,179

Operating lease liabilities
130,580

 
—

Accrued liabilities
372,073

 
330,522

Total long-term liabilities
3,485,116

 
3,306,208

 
 
 
 
Shareholders’ equity:
 

 
 

Preferred stock, no par value:
        100,000 shares authorized, none outstanding
—

 
—

Common stock, no par value:
425,000,000 shares authorized
FY 2020: 186,298,161 issued and 103,702,675 outstanding
FY 2019: 184,790,626 issued and 103,284,401 outstanding
1,066,814

 
840,328

Paid-in capital
134,041

 
227,928

Retained earnings
6,917,310

 
6,691,236

Treasury stock:
FY 2020: 82,595,486 shares
FY 2019: 81,506,225 shares
(4,976,360
)
 
(4,717,619
)
Accumulated other comprehensive loss
(36,835
)
 
(39,152
)
Total shareholders’ equity
3,104,970

 
3,002,721

 
$
7,887,337

 
$
7,436,662





Cintas Corporation
Consolidated Condensed Statements of Cash Flows
(Unaudited)
(In thousands)
 
Six Months Ended
 
November 30,
2019
 
November 30,
2018
Cash flows from operating activities:
 

 
 

Net income
$
496,932

 
$
455,528

 
 
 
 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation
115,367

 
107,112

Amortization of intangible assets and capitalized contract costs
70,963

 
67,559

Stock-based compensation
69,398

 
74,784

Gain on sale of a cost method investment
—

 
(69,373
)
Deferred income taxes
7,632

 
19,227

Change in current assets and liabilities, net of acquisitions of businesses:
 
 
 
Accounts receivable, net
(37,940
)
 
(85,748
)
Inventories, net
(13,402
)
 
(53,227
)
Uniforms and other rental items in service
(32,744
)
 
(57,684
)
Prepaid expenses and other current assets and capitalized contract costs
(68,409
)
 
(58,161
)
Accounts payable
28,055

 
(1,955
)
Accrued compensation and related liabilities
(29,326
)
 
(20,969
)
Accrued liabilities and other
(17,883
)
 
(15,322
)
Income taxes, current
(17,292
)
 
(17,204
)
Net cash provided by operating activities
571,351

 
344,567

 
 
 
 
Cash flows from investing activities:
 

 
 

Capital expenditures
(126,167
)
 
(137,614
)
Purchase of investments
(10,121
)
 
(14,071
)
Proceeds from sale of a cost method investment
—

 
73,342

Proceeds from sale of assets
13,300

 
—

Acquisitions of businesses, net of cash acquired
(6,582
)
 
(6,580
)
Other, net
(2,103
)
 
(1,717
)
Net cash used in investing activities
(131,673
)
 
(86,640
)
 
 
 
 
Cash flows from financing activities:
 
 
 

(Payments) issuance of commercial paper, net
(112,500
)
 
173,500

Proceeds from exercise of stock-based compensation awards
63,201

 
32,612

Repurchase of common stock
(258,741
)
 
(508,129
)
Other, net
(1,952
)
 
(5,362
)
Net cash used in financing activities
(309,992
)
 
(307,379
)
 


 


Effect of exchange rate changes on cash and cash equivalents
204

 
(793
)
 
 
 
 
Net increase (decrease) in cash and cash equivalents
129,890

 
(50,245
)
Cash and cash equivalents at beginning of period
96,645

 
138,724

Cash and cash equivalents at end of period
$
226,535

 
$
88,479