UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	November 30, 2022

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to

Commission file number 0-11399

Cintas Corporation

(Exact name of registrant as specified in its charter)

Washington	31-1188630
(State or Other Jurisdiction of Incorporation or Organization)	(IRS Employer Identification Number)
6800 Cintas Boulevard
---	---	---
P.O. Box 625737
Cincinnati,	Ohio	45262-5737
(Address of Principal Executive Offices)		(Zip Code)

Registrant's Telephone Number, Including Area Code: (513) 459-1200

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)		Name of each exchange on which registered
Common stock, no par value	CTAS		The NASDAQ Stock Market LLC
		(NASDAQ Global Select Market)

Indicate by checkmark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by checkmark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☑ No ☐

Indicate by checkmark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☑ Accelerated Filer ☐ Non-Accelerated Filer ☐

Smaller Reporting Company ☐ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by checkmark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding December 31, 2022
Common Stock, no par value	101,620,479

CINTAS CORPORATION

		Page
Part I. Financial Information
Item 1.	Financial Statements
	Consolidated Condensed Statements of Income –<br><br>Threeand SixMonths EndedNovember 30,2022 and 2021	3
	Consolidated Condensed Statements of Comprehensive Income –<br><br>Threeand SixMonths EndedNovember 30, 2022 and 2021	4
	Consolidated Condensed Balance Sheets–<br><br>November 30, 2022 and May 31, 2022	5
	Consolidated Condensed Statements of Shareholders' Equity -<br><br>Threeand SixMonths EndedNovember 30, 2022 and 2021	6
	Consolidated Condensed Statements of Cash Flows –<br><br>SixMonths EndedNovember 30, 2022 and 2021	8
	Notes to Consolidated Condensed Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34
Part II. Other Information
Item 1.	Legal Proceedings	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 6.	Exhibits	36
Signatures		37

Table of Contents

Part I. Financial Information

ITEM 1.

FINANCIAL STATEMENTS

CINTAS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended				Six Months Ended
(In thousands except per share data)	November 30, 2022		November 30, 2021		November 30, 2022		November 30, 2021
Revenue:
Uniform rental and facility services	$	1,709,987	$	1,535,271	$	3,407,759	$	3,043,447
Other	464,871		387,010		933,553		775,784
Total revenue	2,174,858		1,922,281		4,341,312		3,819,231
Costs and expenses:
Cost of uniform rental and facility services	906,727		817,261		1,797,493		1,596,562
Cost of other	245,684		219,879		493,260		434,772
Selling and administrative expenses	577,513		503,913		1,165,505		1,012,568
Operating income	444,934		381,228		885,054		775,329
Interest income	(344)		(56)		(499)		(112)
Interest expense	28,920		21,902		56,640		43,756
Income before income taxes	416,358		359,382		828,913		731,685
Income taxes	92,065		64,713		152,931		105,837
Net income	$	324,293	$	294,669	$	675,982	$	625,848
Basic earnings per share	$	3.18	$	2.83	$	6.63	$	6.02
Diluted earnings per share	$	3.12	$	2.76	$	6.51	$	5.87
Dividends declared per share	$	1.15	$	0.95	$	2.30	$	1.90

See accompanying notes.

Table of Contents

CINTAS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended				Six Months Ended
(In thousands)	November 30, <br>2022		November 30, <br>2021		November 30, <br>2022		November 30, <br>2021
Net income	$	324,293	$	294,669	$	675,982	$	625,848
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(9,901)		(7,472)		(29,107)		(31,488)
Change in fair value of interest rate lock<br><br>agreements, net of tax expense (benefit)<br><br>of $2,531, $3,744, $2,851 and $(8,810),<br><br>respectively	7,394		10,940		8,328		(25,739)
Amortization of interest rate lock agreements, net of tax expense of $513, $148, $1,025 and $296, respectively	(1,521)		(460)		(3,042)		(919)
Other comprehensive (loss) income, net of tax<br><br>expense (benefit) of $3,044, $3,892, $3,876<br><br>and $(8,514), respectively	(4,028)		3,008		(23,821)		(58,146)
Comprehensive income	$	320,265	$	297,677	$	652,161	$	567,702

See accompanying notes.

Table of Contents

CINTAS CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS

(In thousands except per share data)	November 30, <br>2022		May 31,<br>2022
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	89,799	$	90,471
Accounts receivable, net	1,135,833		1,006,220
Inventories, net	514,839		472,150
Uniforms and other rental items in service	986,505		916,706
Income taxes, current	13,657		21,708
Prepaid expenses and other current assets	152,537		124,728
Total current assets	2,893,170		2,631,983
Property and equipment, net	1,340,658		1,323,673
Investments	243,574		242,873
Goodwill	3,037,506		3,042,976
Service contracts, net	367,612		391,638
Operating lease right-of-use assets, net	176,276		170,003
Other assets, net	368,211		344,110
	$	8,427,007	$	8,147,256
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	310,986	$	251,504
Accrued compensation and related liabilities	208,342		236,992
Accrued liabilities	556,211		588,948
Operating lease liabilities, current	42,792		43,872
Debt due within one year	435,406		311,574
Total current liabilities	1,553,737		1,432,890
Long-term liabilities:
Debt due after one year	2,485,277		2,483,932
Deferred income taxes	493,379		473,777
Operating lease liabilities	136,520		129,064
Accrued liabilities	327,556		319,397
Total long-term liabilities	3,442,732		3,406,170
Shareholders’ equity:
Preferred stock, no par value:	—		—
100,000 shares authorized, none outstanding
Common stock, no par value, and paid-in capital:	1,933,145		1,771,917
425,000,000 shares authorized
FY 2023: 191,857,155 shares issued and 101,601,032 shares outstanding
FY 2022: 190,837,921 shares issued and 101,711,215 shares outstanding
Retained earnings	9,160,346		8,719,163
Treasury stock:	(7,747,049)		(7,290,801)
FY 2023: 90,256,123 shares
FY 2022: 89,126,706 shares
Accumulated other comprehensive income	84,096		107,917
Total shareholders’ equity	3,430,538		3,308,196
	$	8,427,007	$	8,147,256

See accompanying notes.

Table of Contents

CINTAS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

	Common Stock<br>and Paid-In Capital			Retained <br>Earnings			Accumulated<br>Other<br>Comprehensive<br>Income			Treasury Stock			Total<br>Shareholders'<br>Equity
(In thousands)	Shares	Amount				Shares			Amount
Balance at June 1, 2022	190,838	$	1,771,917	$	8,719,163		$	107,917		(89,127)	$	(7,290,801)	$	3,308,196
Net income	—	—		351,689			—			—	—		351,689
Comprehensive loss, net of tax	—	—		—			(19,793)			—	—		(19,793)
Dividends	—	—		(117,461)			—			—	—		(117,461)
Stock-based compensation	—	26,282		—			—			—	—		26,282
Vesting of stock-based compensation awards	273	—		—			—			—	—		—
Stock options exercised	543	80,638		—			—			(193)	(79,591)		1,047
Repurchase of common stock	—	—		—			—			(802)	(320,334)		(320,334)
Balance at August 31, 2022	191,654	$	1,878,837	$	8,953,391		$	88,124		(90,122)	$	(7,690,726)	$	3,229,626
Net income	—	—		324,293			—			—	—		324,293
Comprehensive loss, net of tax	—	—		—			(4,028)			—	—		(4,028)
Dividends	—	—		(117,338)			—			—	—		(117,338)
Stock-based compensation	—	25,255		—			—			—	—		25,255
Vesting of stock-based compensation awards	9	—		—			—			—	—		—
Stock options exercised	194	29,053		—			—			(66)	(27,975)		1,078
Repurchase of common stock	—	—		—			—			(68)	(28,348)		(28,348)
Balance at November 30, 2022	191,857	$	1,933,145	$	9,160,346		$	84,096		(90,256)	$	(7,747,049)	$	3,430,538

Table of Contents

CINTAS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

	Common Stock<br>and Paid-In Capital			Retained <br>Earnings			Accumulated<br>Other<br>Comprehensive<br>Income (Loss)			Treasury Stock			Total<br>Shareholders'<br>Equity
(In thousands)	Shares	Amount				Shares			Amount
Balance at June 1, 2021	189,071	$	1,516,202	$	7,877,015		$	30,888		(85,010)	$	(5,736,258)	$	3,687,847
Net income	—	—		331,179			—			—	—		331,179
Comprehensive loss, net of tax	—	—		—			(61,154)			—	—		(61,154)
Dividends	—	—		(98,826)			—			—	—		(98,826)
Stock-based compensation	—	36,496		—			—			—	—		36,496
Vesting of stock-based compensation awards	493	—		—			—			—	—		—
Stock options exercised	564	72,896		—			—			—	—		72,896
Repurchase of common stock	—	—		—			—			(1,788)	(659,235)		(659,235)
Balance at August 31, 2021	190,128	$	1,625,594	$	8,109,368		$	(30,266)		(86,798)	$	(6,395,493)	$	3,309,203
Net income	—	—		294,669			—			—	—		294,669
Comprehensive income, net of tax	—	—		—			3,008			—	—		3,008
Dividends	—	—		(98,961)			—			—	—		(98,961)
Stock-based compensation	—	24,397		—			—			—	—		24,397
Vesting of stock-based compensation awards	31	—		—			—			—	—		—
Stock options exercised	317	36,302		—			—			—	—		36,302
Repurchase of common stock	—	—		—			—			(13)	(5,491)		(5,491)
Balance at November 30, 2021	190,476	$	1,686,293	$	8,305,076		$	(27,258)		(86,811)	$	(6,400,984)	$	3,563,127

See accompanying notes.

Table of Contents

CINTAS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended
(In thousands)	November 30, 2022		November 30, 2021
Cash flows from operating activities:
Net income	$	675,982	$	625,848
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	126,561		122,274
Amortization of intangible assets and capitalized contract costs	74,693		74,365
Stock-based compensation	51,537		60,893
Gain on sale of operating assets	—		(12,129)
Deferred income taxes	18,565		29,941
Change in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	(133,897)		(77,343)
Inventories, net	(43,266)		13,406
Uniforms and other rental items in service	(73,475)		(69,513)
Prepaid expenses and other current assets and capitalized contract costs	(85,532)		(47,978)
Accounts payable	61,421		11,400
Accrued compensation and related liabilities	(28,212)		(59,988)
Accrued liabilities and other	(33,352)		(10,519)
Income taxes, current	8,124		(66,875)
Net cash provided by operating activities	619,149		593,782
Cash flows from investing activities:
Capital expenditures	(146,404)		(108,629)
Purchases of investments	(5,182)		(5,967)
Proceeds from sale of operating assets, net of cash disposed	—		15,347
Acquisitions of businesses, net of cash acquired	(15,457)		(45,670)
Other, net	(4,381)		(6,676)
Net cash used in investing activities	(171,424)		(151,595)
Cash flows from financing activities:
Issuance of commercial paper, net	124,046		167,000
Repayment of debt	—		(250,000)
Proceeds from exercise of stock-based compensation awards	2,125		109,198
Dividends paid	(215,017)		(177,949)
Repurchase of common stock	(348,682)		(664,726)
Other, net	(8,840)		(3,399)
Net cash used in financing activities	(446,368)		(819,876)
Effect of exchange rate changes on cash and cash equivalents	(2,029)		(2,781)
Net decrease in cash and cash equivalents	(672)		(380,470)
Cash and cash equivalents at beginning of period	90,471		493,640
Cash and cash equivalents at end of period	$	89,799	$	113,170

See accompanying notes.

Table of Contents

CINTAS CORPORATION

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note 1 - Basis of Presentation

The consolidated condensed financial statements of Cintas Corporation (Cintas, the Company, we, us or our) included herein have been prepared by Cintas, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with United States generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations. While we believe that the disclosures are adequately presented, we suggest that these consolidated condensed financial statements be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2022 filed with the SEC on July 27, 2022. A summary of our significant accounting policies is presented beginning on page 41 of that report. There have been no material changes in the accounting policies followed by Cintas during the current fiscal year.

Interim results are subject to variations and are not necessarily indicative of the results of operations for a full fiscal year. In the opinion of management, adjustments (which include only normal recurring adjustments) necessary for a fair statement of the consolidated results of the interim periods shown have been made.

Inventories, net are valued at the lower of cost (first-in, first-out) or net realizable value. Inventory is comprised of the following:

(In thousands)	November 30, <br>2022		May 31,<br>2022
Raw materials	$	18,431	$	19,071
Work in process	48,245		34,280
Finished goods	448,163		418,799
	$	514,839	$	472,150

Inventories are recorded net of reserves for obsolete inventory (excess and slow-moving) of $70.2 million and $100.3 million at November 30, 2022 and May 31, 2022, respectively. The inventory obsolescence reserve is determined by specific identification, as well as an estimate based on Cintas' historical rates of obsolescence. Once a specific inventory item is written down to the lower of cost or net realizable value, a new cost basis has been established, and that inventory item cannot subsequently be marked up.

New Accounting Pronouncements

There are no new accounting pronouncements recently issued or newly effective that had, or are expected to have, a material impact on Cintas' consolidated condensed financial statements.

Table of Contents

Note 2 - Revenue Recognition

The following table presents Cintas' total revenue disaggregated by operating segment:

	Three Months Ended								Six Months Ended
(In thousands)	November 30, <br>2022				November 30, <br>2021				November 30, <br>2022				November 30, <br>2021
Uniform Rental and<br> Facility Services	$	1,709,987	78.6	%	$	1,535,271	79.9	%	$	3,407,759	78.5	%	$	3,043,447	79.7	%
First Aid and Safety<br> Services	235,974		10.9	%	202,160		10.5	%	470,135		10.8	%	401,276		10.5	%
Fire Protection<br> Services	146,602		6.7	%	123,254		6.4	%	298,449		6.9	%	251,472		6.6	%
Uniform Direct<br> Sales	82,295		3.8	%	61,596		3.2	%	164,969		3.8	%	123,036		3.2	%
Total revenue	$	2,174,858	100.0	%	$	1,922,281	100.0	%	$	4,341,312	100.0	%	$	3,819,231	100.0	%

The Fire Protection Services and Uniform Direct Sales operating segments are included within All Other as disclosed in Note 12 entitled Segment Information.

Revenue Recognition Policy

Approximately 95% of the Company's revenue is derived from fees for route servicing of Uniform Rental and Facility Services, First Aid and Safety Services and Fire Protection Services operating segment customers, performed by a Cintas employee-partner, at the customer's location of business. Revenue from our route servicing customer contracts represent a single-performance obligation. The Company recognizes revenue over time as services are performed, based on the nature of services provided and contractual rates (output method) or at a point in time when the performance obligation under the terms of the contract with a customer are satisfied, at the customer's location of business. The Company's remaining revenue, primarily within the Uniform Direct Sales operating segment, and representing approximately 5% of the Company's total revenue, is recognized when the obligations under the terms of a contract with a customer are satisfied. This generally occurs when the goods are transferred to the customer.

Revenue recorded is presented net of sales and other taxes we collect on behalf of governmental authorities. Shipping and handling costs charged to customers are treated as fulfillment activities and are recorded in both revenue and cost of sales at the time control is transferred to the customer. Certain of our customer contracts include pricing terms and conditions that include components of variable consideration. The variable consideration is typically in the form of consideration paid to a customer based on performance metrics specified within the contract. Specifically, some contracts contain discounts or rebates that the customer can earn through the achievement of specified volume levels. Each component of variable consideration is earned based on the Company's actual performance during the measurement period specified within the contract. To determine the transaction price, the Company estimates the variable consideration using the most likely amount method, based on the specific contract provisions and known performance results during the relevant measurement period. When determining if variable consideration should be constrained, the Company considers whether factors outside its control could result in a significant reversal of revenue. In making these assessments, the Company considers the likelihood and magnitude of a potential reversal. The Company's performance period generally corresponds with the monthly invoice period. No constraints on our revenue recognition were applied during the three or six months ended November 30, 2022 or 2021. The Company reassesses these estimates during each reporting period. Cintas maintains a liability for these discounts and rebates within accrued liabilities on the consolidated condensed balance sheets. Variable consideration also includes consideration paid to a customer at the beginning of a contract. Cintas capitalizes this consideration and amortizes it over the life of the contract as a reduction to revenue. These assets are included in prepaid expenses and other current assets and in other assets, net on the consolidated condensed balance sheets.

We are exposed to credit losses primarily through our trade receivables. We determine the allowance for credit losses using both an estimate, based on historical rates of collections, and reserves for specific accounts identified as uncollectible. The portion of the allowance that is an estimate based on Cintas' historical rates of collections is recorded for overdue amounts, beginning with a nominal percentage when the account is current and increasing

Table of Contents

substantially as the account ages. The amount provided as the account ages will differ slightly between the Uniform Rental and Facility Services reportable operating segment, the First Aid and Safety Services reportable operating segment and All Other because of differences in customers served and the nature of each business. We update our estimate of credit loss reserves quarterly, considering recent write-offs and collections information and underlying economic expectations.

Costs to Obtain a Contract

The Company capitalizes commission expenses paid to our employee-partners when the commissions are deemed to be incremental for obtaining the route servicing customer contract. As permitted by Accounting Standards Codification 606, "Revenue from Contracts with Customers (Topic 606)", the Company has elected to apply the guidance to a portfolio of contracts (or performance obligations) with similar characteristics because the Company reasonably expects that the effects on the consolidated condensed financial statements of applying this guidance to the portfolio would not differ materially from applying this guidance to the individual contracts within the portfolio. The Company also continues to expense certain costs to obtain a contract if those costs do not meet the criteria of the standard or the amortization period of the asset would have been one year or less. The deferred commissions are amortized on a straight-line basis over the expected period of benefit. We review the deferred commission balances for impairment on an ongoing basis. Deferred commissions are classified as current or noncurrent based on the timing of when we expect to recognize the expense. The current portion is included in prepaid expenses and other current assets and the noncurrent portion is included in other assets, net on the Company's consolidated condensed balance sheets. As of November 30, 2022, the current and noncurrent assets related to deferred commissions totaled $88.2 million and $244.1 million, respectively. As of May 31, 2022, the current and noncurrent assets related to deferred commissions totaled $83.7 million and $232.2 million, respectively. We recorded amortization expense related to deferred commissions of $23.4 million and $21.7 million during the three months ended November 30, 2022 and 2021, respectively. During the six months ended November 30, 2022 and 2021, we recorded amortization expense related to deferred commissions of $45.8 million and $43.1 million, respectively. These expenses are classified in selling and administrative expenses on the consolidated condensed statements of income.

Note 3 - Leases

Cintas has operating leases for certain operating facilities, vehicles and equipment, which provide the right to use the underlying asset and require lease payments over the term of the lease. Each new contract is evaluated to determine if an arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. All identified leases are recorded on the consolidated condensed balance sheet with a corresponding operating lease right-of-use asset, net, representing the right to use the underlying asset for the lease term and the operating lease liabilities representing the obligation to make lease payments arising from the lease. Short-term operating leases, which have an initial term of 12 months or less, are not recorded on the consolidated condensed balance sheet.

Operating lease right-of-use assets, net and operating lease liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of lease payments is determined primarily using the incremental borrowing rate based on the information available at lease commencement date. Lease expense for operating leases is recorded on a straight-line basis over the lease term and variable lease costs are recorded as incurred. Both lease expense and variable lease costs are primarily recorded in cost of uniform rental and facility services and other on the Company's consolidated condensed statements of income. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Operating lease costs, including short-term lease expense and variable lease costs which were immaterial in both periods, were $20.0 million and $18.0 million for the three months ended November 30, 2022 and 2021, respectively. For the six months ended November 30, 2022 and 2021, operating lease costs, including short-term lease expense and variable lease costs which were immaterial in both periods, were $39.5 million and $36.2 million, respectively.

Table of Contents

The following table provides supplemental information related to the Company's consolidated condensed statements of cash flows for the six months ended November 30:

(In thousands)	2022		2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	25,108	$	24,301
Operating lease right-of-use assets obtained in exchange for new and renewed<br> operating lease liabilities	$	29,186	$	10,609

Other information related to the operating lease right-of-use assets, net and operating lease liabilities was as follows:

	November 30, <br>2022	May 31,<br>2022
Weighted-average remaining lease term - operating leases	5.37 years	5.40 years
Weighted-average discount rate - operating leases	2.50%	2.20%

The contractual future minimum lease payments of Cintas' operating lease liabilities by fiscal year are as follows as of November 30, 2022:

(In thousands)
2023 (remaining six months)	$	23,932
2024	43,081
2025	35,080
2026	28,347
2027	20,682
Thereafter	40,859
Total payments	191,981
Less interest	(12,669)
Total present value of lease payments	$	179,312

Table of Contents

Note 4 - Fair Value Measurements

All financial instruments that are measured at fair value on a recurring basis (at least annually) have been classified within the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the consolidated condensed balance sheet date. These financial instruments measured at fair value on a recurring basis are summarized below:

	As of November 30, 2022
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Cash and cash equivalents	$	89,799	$	—	$	—	$	89,799
Other assets, net:
Interest rate lock agreements	—		68,057		—		68,057
Total assets at fair value	$	89,799	$	68,057	$	—	$	157,856	As of May 31, 2022
---	---	---	---	---	---	---	---	---
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Cash and cash equivalents	$	90,471	$	—	$	—	$	90,471
Other assets, net:
Interest rate lock agreements	—		56,877		—		56,877
Total assets at fair value	$	90,471	$	56,877	$	—	$	147,348

Cintas’ cash and cash equivalents are generally classified within Level 1 or Level 2 of the fair value hierarchy. Financial instruments classified as Level 1 are based on quoted market prices in active markets, and financial instruments classified as Level 2 are based on quoted market prices, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. The types of financial instruments Cintas classifies within Level 1 include most bank deposits and money market securities. Cintas does not adjust the quoted market price for such financial instruments.

The fair values of Cintas' interest rate lock agreements are based on similar exchange traded derivatives (market approach) and are, therefore, included within Level 2 of the fair value hierarchy. The fair value was determined by comparing the locked rates against the benchmarked treasury rate. No other amounts included in other assets, net, are recorded at fair value on a recurring basis.

The methods described above may produce a fair value that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while Cintas believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the consolidated condensed balance sheet dates.

In addition to assets and liabilities that are recorded at fair value on a recurring basis, Cintas records assets and liabilities at fair value on a nonrecurring basis as required under U.S. GAAP. The assets and liabilities measured at fair value on a nonrecurring basis primarily relate to assets and liabilities acquired in a business acquisition. The Company's acquisition of the remaining interest of an equity method investment during fiscal 2022 was recorded at fair value. See Note 10 entitled Acquisitions for additional information.

Table of Contents

Note 5 - Investments

Cintas' investments are summarized as follows:

(In thousands)	November 30, <br>2022		May 31,<br>2022
Cash surrender value of insurance policies	$	238,637	$	237,136
Other investments	4,937		5,737
Total investments	$	243,574	$	242,873

Investments are generally evaluated for impairment on an annual basis or when indicators of impairment exist. For the three and six months ended November 30, 2022 and 2021, no impairment losses were recorded.

Note 6 - Earnings Per Share

Cintas uses the two-class method to calculate basic and diluted earnings per share as a result of outstanding participating securities in the form of restricted stock awards. The following tables set forth the computation of basic and diluted earnings per share using the two-class method for amounts attributable to Cintas’ common shares:

	Three Months Ended				Six Months Ended
Basic Earnings per Share<br><br>(In thousands except per share data)	November 30, 2022		November 30, 2021		November 30, 2022		November 30, 2021
Net income	$	324,293	$	294,669	$	675,982	$	625,848
Less: net income allocated to participating securities	1,372		1,495		2,859		3,179
Net income available to common<br>shareholders	$	322,921	$	293,174	$	673,123	$	622,669
Basic weighted average common shares outstanding	101,637		103,646		101,530		103,463
Basic earnings per share	$	3.18	$	2.83	$	6.63	$	6.02	Three Months Ended	Six Months Ended
---	---	---	---	---	---	---	---	---
Diluted Earnings per Share<br><br>(In thousands except per share data)	November 30, 2022		November 30, 2021		November 30, 2022		November 30, 2021
Net income	$	324,293	$	294,669	$	675,982	$	625,848
Less: net income allocated to participating securities	1,372		1,495		2,859		3,179
Net income available to common<br>shareholders	$	322,921	$	293,174	$	673,123	$	622,669
Basic weighted average common shares outstanding	101,637		103,646		101,530		103,463
Effect of dilutive securities – employee stock options	1,719		2,476		1,813		2,563
Diluted weighted average common shares outstanding	103,356		106,122		103,343		106,026
Diluted earnings per share	$	3.12	$	2.76	$	6.51	$	5.87

For the three months ended November 30, 2022 and 2021, options granted to purchase 1.1 million and 0.1 million shares of Cintas common stock, respectively, were excluded from the computation of diluted earnings per share. For the six months ended November 30, 2022 and 2021, options granted to purchase 0.9 million and 0.1 million shares of Cintas common stock, respectively, were excluded from the computation of diluted earnings per share. The exercise prices of these options were greater than the average market price of the common stock (anti-dilutive).

Table of Contents

On October 29, 2019, we announced that the Board of Directors authorized a $1.0 billion share buyback program, which was completed during the first quarter of fiscal 2022. On July 27, 2021, Cintas announced that the Board of Directors authorized a $1.5 billion share buyback program, which does not have an expiration date. From the inception of the July 27, 2021 share buyback program through November 30, 2022, Cintas purchased a total of 2.7 million shares of Cintas common stock at an average price of $385.62 per share for a total purchase price of $1.0 billion. On July 26, 2022, Cintas announced that the Board of Directors authorized a new $1.0 billion share buyback program, which does not have an expiration date. The following tables summarize the share buyback activity by program and period:

	Three Months Ended					Six Months Ended
	November 30, 2022					November 30, 2022
Buyback Activity<br><br>(In thousands except per share data)	Shares	Avg. Price<br>per Share		Purchase<br>Price		Shares	Avg. Price<br>per Share		Purchase<br>Price
July 27, 2021	12	$	377.66	$	4,683	544	$	395.97	$	215,434
July 26, 2022	—	—		—		—	—		—
	12	$	377.66	$	4,683	544	$	395.97	$	215,434
Shares acquired for taxes due (1)	56	$	423.64	$	23,665	326	$	408.97	$	133,248
Total repurchase of Cintas common stock				$	28,348				$	348,682
	Three Months Ended					Six Months Ended
---	---	---	---	---	---	---	---	---	---	---
	November 30, 2021					November 30, 2021
Buyback Activity<br><br>(In thousands except per share data)	Shares	Avg. Price<br>per Share		Purchase<br>Price		Shares	Avg. Price<br>per Share		Purchase<br>Price
October 29, 2019	—	$	—	$	—	1,590	$	365.41	$	581,220
July 27, 2021	—	—		—		—	—		—
	—	$	—	$	—	1,590	$	365.41	$	581,220
Shares acquired for taxes due (1)	13	$	420.87	$	5,483	211	$	395.84	$	83,506
Total repurchase of Cintas common stock				$	5,483				$	664,726

(1) Shares of Cintas common stock acquired for employee payroll taxes due on options exercised and vested restricted stock awards.

In addition to the share buyback activity presented above, Cintas acquired shares of Cintas common stock, via non-cash transactions, in connection with net-share settlements of option exercises. During the three months ended November 30, 2022, Cintas acquired 0.1 million shares of Cintas common stock via such non-cash transactions at an average price of $421.85 for a total non-cash value of $28.0 million. During the six months ended November 30, 2022, Cintas acquired 0.3 million shares of Cintas common stock via such non-cash transactions at an average price of $414.46 for a total non-cash value of $107.6 million. During the three and six months ended November 30, 2021, there were no shares of Cintas common stock acquired via non-cash transactions, in connection with net-share settlements of option exercises.

Table of Contents

Note 7 - Goodwill, Service Contracts and Other Assets, Net

Changes in the carrying amount of goodwill and service contracts for the six months ended November 30, 2022, by reportable operating segment and All Other, are as follows:

Goodwill<br><br>(in thousands)	Uniform Rental<br> and Facility Services		First Aid<br> and Safety Services		All<br>Other		Total
Balance as of June 1, 2022	$	2,635,099	$	285,769	$	122,108	$	3,042,976
Goodwill acquired	2,998		6,714		518		10,230
Foreign currency translation	(14,377)		(1,273)		(50)		(15,700)
Balance as of November 30, 2022	$	2,623,720	$	291,210	$	122,576	$	3,037,506	Service Contracts<br><br>(in thousands)	Uniform Rental<br> and Facility Services	First Aid<br> and Safety Services	All<br>Other	Total
---	---	---	---	---	---	---	---	---
Balance as of June 1, 2022	$	349,634	$	24,144	$	17,860	$	391,638
Service contracts acquired	2,763		1,720		764		5,247
Service contracts amortization	(21,587)		(2,549)		(2,285)		(26,421)
Foreign currency translation	(2,730)		(122)		—		(2,852)
Balance as of November 30, 2022	$	328,080	$	23,193	$	16,339	$	367,612

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

	As of November 30, 2022						As of May 31, 2022
(In thousands)	Carrying<br>Amount		Accumulated<br>Amortization		Net		Carrying<br>Amount		Accumulated<br>Amortization		Net
Service contracts	$	1,000,250	$	632,638	$	367,612	$	1,001,311	$	609,673	$	391,638
Capitalized contract<br><br>costs (1)	$	609,239	$	365,159	$	244,080	$	551,582	$	319,358	$	232,224
Noncompete and<br> consulting agreements	51,261		44,662		6,599		50,637		43,775		6,862
Other	138,725		21,193		117,532		125,941		20,917		105,024
Total other assets, net	$	799,225	$	431,014	$	368,211	$	728,160	$	384,050	$	344,110

(1) The current portion of capitalized contract costs, included in prepaid expenses and other current assets on the consolidated condensed balance sheets as of November 30, 2022 and May 31, 2022, is $88.2 million and $83.7 million, respectively.

Amortization expense for service contracts and other assets, was $37.3 million and $36.9 million for the three months ended November 30, 2022 and 2021, respectively. For the six months ended November 30, 2022 and 2021, amortization expense for service contracts and other assets was $73.7 million and $73.4 million, respectively. These expenses are recorded in selling and administrative expenses on the consolidated condensed statements of income. As of November 30, 2022, the estimated future amortization expense for service contracts and other assets, excluding any future acquisitions and commissions to be earned, is as follows:

Fiscal Year (In thousands)
2023 (remaining six months)	$	73,459
2024	136,963
2025	122,398
2026	102,222
2027	83,351
Thereafter	191,764
Total future amortization expense	$	710,157

Table of Contents

Note 8 - Debt, Derivatives and Hedging Activities

Cintas' outstanding debt is summarized as follows:

(In thousands)	Interest<br> Rate			Fiscal Year<br>Issued	Fiscal Year<br>Maturity	November 30, <br>2022		May 31,<br>2022
Debt due within one year
Commercial paper	4.30	%	(1)	2023	2023	$	385,246	$	261,200
Senior notes (2)	2.78	%		2013	2023	50,163		50,380
Debt issuance costs						(3)		(6)
Total debt due within one year						$	435,406	$	311,574
Debt due after one year
Senior notes (3)	3.11	%		2015	2025	$	50,798	$	50,965
Senior notes	3.45	%		2022	2025	400,000		400,000
Senior notes	3.70	%		2017	2027	1,000,000		1,000,000
Senior notes	4.00	%		2022	2032	800,000		800,000
Senior notes	6.15	%		2007	2037	250,000		250,000
Debt issuance costs						(15,521)		(17,033)
Total debt due after one year						$	2,485,277	$	2,483,932

(1) Variable rate debt instrument. The rate presented is the variable borrowing rate at November 30, 2022.

(2) Cintas assumed these senior notes with the acquisition of G&K Services, Inc. (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%.

(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 3.88%.

Cintas' senior notes, excluding the G&K senior notes assumed with the acquisition of G&K in fiscal 2017, 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 November 30, 2022 were $2,935.2 million and $2,876.9 million, respectively, and as of May 31, 2022 were $2,811.2 million and $2,862.2 million, respectively. During the six months ended November 30, 2022 and 2021, Cintas issued $124.0 million and $167.0 million, net of commercial paper, respectively.

The credit agreement that supports our commercial paper program has a revolving credit facility with a capacity of $2.0 billion. The credit agreement has an accordion feature that provides Cintas the ability to request increases to the borrowing commitments under the revolving credit facility of up to $500.0 million in the aggregate, subject to customary conditions. The maturity date of the revolving credit facility is March 23, 2027. As of November 30, 2022, there was $385.2 million of commercial paper outstanding with a weighted average interest rate of 4.30% and maturity dates less than 120 days and no borrowings on our revolving credit facility. As of May 31, 2022, there was $261.2 million of commercial paper outstanding with a weighted average interest rate of 1.20% and maturity dates less than 120 days and no borrowings on our revolving credit facility. The fair value of the commercial paper, which approximates carrying value, is estimated using level 2 inputs based on general market prices and interest rates.

Cintas uses interest rate locks to manage its 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 locks, which represent cash flow hedges, to hedge against movements in the treasury rates at the time Cintas issued its senior notes in fiscal 2007, fiscal 2013, fiscal 2017 and fiscal 2022. The amortization of the interest rate locks resulted in a decrease to comprehensive income of $1.5 million and $0.4 million for the three months ended November 30, 2022 and 2021, respectively. For the six months ended November 30, 2022 and 2021, the amortization of the interest rate locks resulted in a decrease to comprehensive income of $3.0 million and $0.9 million, respectively.

Table of Contents

During fiscal 2022 and fiscal 2020, Cintas entered into interest rate lock agreements for forecasted debt issuances. The aggregate notional value of outstanding cash flow hedges was $500.0 million at both November 30, 2022 and May 31, 2022, respectively. The notional and fair values of the outstanding interest rate locks, for forecasted debt issuances, are summarized as follows:


Fiscal Year of Issuance<br><br>(in thousands)	Other <br>assets, net		Other <br>assets, net
2022	$	24,297	$	18,331
2020	$	43,760	$	38,546

The change in fair value of the interest rate locks are recorded in other comprehensive income (loss), net of tax. These interest rate locks had no impact on net income or cash flows for the three and six months ended November 30, 2022 or 2021.

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 of the debt covenants for all periods presented.

Note 9 - Income Taxes

In the normal course of business, Cintas provides for uncertain tax positions and the related interest and adjusts its unrecognized tax benefits and accrued interest accordingly. As of November 30, 2022 and May 31, 2022, recorded unrecognized tax benefits were $26.0 million and $30.8 million, respectively, and are included in long-term accrued liabilities on the consolidated condensed balance sheets.

The majority of Cintas' operations are in North America. Cintas is required to file U.S. federal income tax returns, as well as state income tax returns in a majority of the domestic states and also in certain Canadian provinces. At times, Cintas is subject to audits in these jurisdictions. The audits, by nature, are sometimes complex and can require several years to resolve. The final resolution of any such tax audit could result in either a reduction in Cintas' accruals or an increase in its income tax provision, either of which could have an impact on the consolidated results of operations in any given period.

All U.S. federal income tax returns are closed to audit through fiscal 2018. Cintas is currently in various audits in certain foreign jurisdictions and certain domestic states. The years under foreign and domestic state audits cover fiscal years back to 2014. Based on the resolution of the various audits and other potential regulatory developments, it is reasonably possible that the balance of unrecognized tax benefits would not change for the fiscal year ending May 31, 2023.

Cintas’ effective tax rate was 22.1% and 18.0% for the three months ended November 30, 2022 and 2021, respectively. For the six months ended November 30, 2022 and 2021, Cintas' effective tax rate was 18.4% and 14.5%, respectively. The effective tax rate for all periods was impacted by certain discrete items (primarily the tax accounting for stock-based compensation).

Table of Contents

Note 10 - Acquisitions

On December 10, 2021, Cintas acquired the remaining interest of an equity method investment. The acquisition operates as a component of Cintas' supply chain within the Uniform Rental and Facility Services reportable operating segment. The cash consideration transferred to acquire the remaining interest of the equity method investment was $48.0 million, net of cash acquired of $1.7 million. Under applicable accounting guidance, the Company was required to record its historical equity method investment at fair value ($43.5 million), resulting in a gain of $30.2 million, which was recorded as a reduction in selling and administrative expenses in fiscal 2022. The fair value of the historical equity method investment was determined using a combination of a market and income approach (discounted cash flow analysis). The key assumptions and estimates utilized in these approaches included market data and market multiples, discount rates, as well as future levels of revenue growth and operating margins. The Company believes these assumptions and estimates are reasonable and based on the best information available at the valuation date.

Cintas accounted for the acquisition using the acquisition method of accounting. The purchase price allocation was determined by management with the assistance of third-party valuation specialists and is based on estimates of the fair value of assets acquired and liabilities assumed as of December 10, 2021. During the three and six months ended November 30, 2022, no material adjustments were made to the preliminary purchase price allocation. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The factors contributing to the recognition of the amount of goodwill are based on several strategic supply chain and synergistic benefits that will allow for Cintas to further vertically integrate the operations for certain product lines, and are expected to be realized from the acquisition. None of the goodwill is deductible for income tax purposes.

The final purchase price allocation, including the value of the previously held equity method investment, at fair value is as follows:

(In thousands)	December 10, 2021
ASSETS
Working capital assets	$	17,352
Property and equipment	16,246
Operating lease right-of-use assets	16,882
Goodwill	55,970
Separately identifiable intangible assets	9,201
LIABILITIES
Total current liabilities	(6,425)
Operating lease liabilities	(17,734)
Total allocation (consideration)	$	91,492

The separately identifiable intangible assets are primarily made up of a customer relationship intangible asset that will be amortized over a period of nine years, which represents the estimated useful life of the economic benefit.

Cintas is required to provide additional disclosures about fair value measurements as part of the consolidated condensed financial statements for each major category of assets and liabilities measured at fair value on a nonrecurring basis (including business combinations). The working capital assets and liabilities, as well as the property and equipment acquired, were valued using Level 2 inputs which included data points that are observable, such as definitive sales agreements, appraisals or established market values of comparable assets (market approach). Goodwill and separately identifiable intangible assets were valued using Level 3 inputs, which are unobservable by nature, and included internal estimates of future cash flows (income approach). The results of operations of the acquisition are included in Cintas' consolidated condensed statements of income subsequent to the date of acquisition, and are not material to the consolidated condensed financial statements.

Table of Contents

Note 11 - Accumulated Other Comprehensive Income (Loss)

The following tables summarize the changes in the accumulated balances for each component of accumulated other comprehensive income (loss), net of tax:

(In thousands)	Foreign<br>Currency		Unrealized Income <br>on Interest Rate Locks		Other		Total
Balance at June 1, 2022	$	17,006	$	92,688	$	(1,777)	$	107,917
Other comprehensive (loss) income before reclassifications	(19,206)		934		—		(18,272)
Amounts reclassified from accumulated other<br>comprehensive income (loss)	—		(1,521)		—		(1,521)
Net current period other comprehensive loss	(19,206)		(587)		—		(19,793)
Balance at August 31, 2022	(2,200)		92,101		(1,777)		88,124
Other comprehensive (loss) income before<br> reclassifications	(9,901)		7,394		—		(2,507)
Amounts reclassified from accumulated other<br>comprehensive income (loss)	—		(1,521)		—		(1,521)
Net current period other comprehensive (loss) income	(9,901)		5,873		—		(4,028)
Balance at November 30, 2022	$	(12,101)	$	97,974	$	(1,777)	$	84,096
(In thousands)	Foreign<br>Currency		Unrealized Loss on<br>Interest Rate Locks		Other		Total
---	---	---	---	---	---	---	---	---
Balance at June 1, 2021	$	41,839	$	(7,308)	$	(3,643)	$	30,888
Other comprehensive loss before reclassifications	(24,016)		(36,679)		—		(60,695)
Amounts reclassified from accumulated other<br>comprehensive income (loss)	—		(459)		—		(459)
Net current period other comprehensive loss	(24,016)		(37,138)		—		(61,154)
Balance at August 31, 2021	17,823		(44,446)		(3,643)		(30,266)
Other comprehensive (loss) income before<br> reclassifications	(7,472)		10,940		—		3,468
Amounts reclassified from accumulated other<br>comprehensive income (loss)	—		(460)		—		(460)
Net current period other comprehensive (loss) income	(7,472)		10,480		—		3,008
Balance at November 30, 2021	$	10,351	$	(33,966)	$	(3,643)	$	(27,258)

The following table summarizes the reclassifications out of accumulated other comprehensive income (loss):

Details about Accumulated<br>Other Comprehensive <br>Income (Loss) Components	Amount Reclassified from <br>Accumulated Other<br> Comprehensive Income (Loss)								Affected Line in the<br>Consolidated Condensed<br>Statements of Income
	Three Months Ended				Six Months Ended
(In thousands)	November 30, <br>2022		November 30, <br>2021		November 30, <br>2022		November 30, <br>2021
Amortization of interest rate locks	$	2,034	$	608	$	4,067	$	1,215	Interest expense
Tax expense	(513)		(148)		(1,025)		(296)		Income taxes
Amortization of interest rate locks, net of tax	$	1,521	$	460	$	3,042	$	919

Table of Contents

Note 12 - Segment Information

Cintas’ reportable operating segments are Uniform Rental and Facility Services and First Aid and Safety Services. The Uniform Rental and Facility Services reportable operating segment consists of the rental and servicing of uniforms and other garments including flame resistant clothing, mats, mops and shop towels and other ancillary items. In addition to these rental items, restroom cleaning services and supplies, and the sale of items from our catalogs to our customers on route are included within this reportable operating segment. The First Aid and Safety Services reportable operating segment consists of first aid and safety products and services. The remainder of Cintas’ operating segments, which consists of the Fire Protection Services operating segment and the Uniform Direct Sale operating segment, is included in All Other.

Cintas evaluates the performance of each operating segment based on several factors of which the primary financial measures are operating segment revenue and income before income taxes. The accounting policies of the operating segments are the same as those described in Note 1 entitled Basis of Presentation. Information related to the operations of Cintas’ reportable operating segments and All Other is set forth below:

(In thousands)	Uniform Rental<br>and Facility Services		First Aid <br>and Safety Services		All <br>Other		Corporate (1)		Total
For the three months ended November 30, 2022
Revenue	$	1,709,987	$	235,974	$	228,897	$	—	$	2,174,858
Income (loss) before income taxes	$	369,095	$	45,495	$	30,344	$	(28,576)	$	416,358
For the three months ended November 30, 2021
Revenue	$	1,535,271	$	202,160	$	184,850	$	—	$	1,922,281
Income (loss) before income taxes	$	337,615	$	22,077	$	21,536	$	(21,846)	$	359,382
As of and for the six months ended November 30, 2022
Revenue	$	3,407,759	$	470,135	$	463,418	$	—	$	4,341,312
Income (loss) before income taxes	$	733,866	$	86,341	$	64,847	$	(56,141)	$	828,913
Total assets	$	7,142,226	$	699,184	$	495,798	$	89,799	$	8,427,007
As of and for the six months ended November 30, 2021
Revenue	$	3,043,447	$	401,276	$	374,508	$	—	$	3,819,231
Income (loss) before income taxes	$	666,997	$	47,805	$	60,527	$	(43,644)	$	731,685
Total assets	$	6,901,366	$	632,421	$	370,453	$	113,170	$	8,017,410

(1) Corporate assets include cash and cash equivalents and marketable securities, if applicable, in all periods.

Table of Contents

Note 13 - Litigation and Other Contingencies

Cintas is subject to legal proceedings, insurance receipts, legal settlements and claims arising from the ordinary course of its business, including personal injury, customer contract, environmental and employment claims. In the opinion of management, the aggregate liability, if any, with respect to such ordinary course of business actions will not have a material adverse effect on the consolidated financial position, consolidated results of operations or consolidated cash flows of Cintas. Cintas is party to additional litigation not considered in the ordinary course of business, including the litigation discussed below.

The Company is a defendant in a purported class action lawsuit, City of Laurel, Mississippi v. Cintas Corporation No. 2, filed on March 12, 2021. This is a contract dispute whereby plaintiffs allege that Cintas breached its contracts with participating public agencies and seek, among other things, contract-based damages in an unspecified amount. In March 2022, the District Court denied Cintas’ motion to compel arbitration. Cintas’ appeal from the denial of its motion is pending. Liability in this matter is not probable nor estimable at this time. However, this matter, if decided adversely to Cintas or settled, may result in liability material to Cintas’ consolidated financial condition, consolidated results of operation or consolidated cash flows.

Table of Contents

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Business Strategy

Cintas helps more than one million businesses of all types and sizes, primarily in the United States (U.S.), as well as Canada and Latin America, 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, mats, mops, restroom supplies, first aid and safety products, fire extinguishers and testing, and safety training, Cintas helps customers get Ready for the Workday®.

We are North America’s leading provider of corporate identity uniforms through rental and sales programs, as well as a significant provider of related business services, including entrance mats, restroom cleaning services and supplies, first aid and safety services and fire protection products and services.

Cintas’ principal objective is “to exceed customers’ expectations in order to maximize the long-term value of Cintas for shareholders and working partners,” and it provides the framework and focus for Cintas’ business strategy. This strategy is to achieve revenue growth for all our products and services by increasing our penetration at existing customers and by broadening our customer base to include market segments to which we have not historically served. We will also continue to identify additional product and service opportunities for our current and future customers.

To pursue the strategy of increasing penetration, we have a highly talented and diverse team of service professionals visiting our customers on a regular basis. This frequent contact with our customers enables us to develop close personal relationships. The combination of our distribution system and these strong customer relationships provides a platform from which we launch additional products and services.

We pursue the strategy of broadening our customer base in several ways. Cintas has a national sales organization introducing all its products and services to prospects in all market segments. Our broad range of products and services allows our sales organization to consider any type of business a prospect. We also broaden our customer base through geographic expansion. Finally, we evaluate strategic acquisitions as opportunities arise.

Results of Operations

Cintas classifies its business into two reportable operating segments and places the remainder of its operating segments in an All Other category. Cintas’ two reportable operating segments are Uniform Rental and Facility Services and First Aid and Safety Services. The Uniform Rental and Facility Services reportable operating segment consists of the rental and servicing of uniforms and other garments including flame resistant clothing, mats, mops and shop towels and other ancillary items. In addition to these rental items, restroom cleaning services and supplies and the sale of items from our catalogs to our customers on route are included within this reportable operating segment. The First Aid and Safety Services reportable operating segment consists of first aid and safety products and services. The remainder of Cintas’ business, which consists of the Fire Protection Services operating segment and the Uniform Direct Sale operating segment, is included in All Other. These operating segments consist of fire protection products and services and the direct sale of uniforms and related items. Cintas evaluates operating segment performance based on revenue and income before income taxes. Revenue and income before income taxes for the three and six months ended November 30, 2022 and 2021, for the two reportable operating segments and All Other are presented in Note 12 entitled Segment Information of “Notes to Consolidated Condensed Financial Statements.”

Consolidated Results

Three Months Ended November 30, 2022 Compared to Three Months Ended November 30, 2021

Total revenue increased 13.1% to $2,174.9 million for the three months ended November 30, 2022, compared to $1,922.3 million for the three months ended November 30, 2021. The organic revenue growth rate, which adjusts for the impact of acquisitions, divestitures and foreign currency exchange rate fluctuations, was 12.8%. Revenue growth was positively impacted by 0.7% due primarily to acquisitions and negatively impacted by 0.4% due to foreign currency exchange rate fluctuations.

Table of Contents

Uniform Rental and Facility Services reportable operating segment revenue was $1,710.0 million for the three months ended November 30, 2022, compared to $1,535.3 million for the same period in the prior fiscal year, which was an increase of 11.4%. The organic revenue growth rate for this reportable operating segment was 11.3%. Revenue growth in the Uniform Rental and Facility Services reportable operating segment was positively impacted by 0.6% due to acquisitions and negatively impacted by 0.5% due to foreign currency exchange rate fluctuations. Revenue growth was a result of new business, the penetration of additional products and services into existing customers and price increases, partially offset by lost business. New business growth resulted from an increase in the number and productivity of sales representatives.

Other revenue, consisting of revenue from the First Aid and Safety Services reportable operating segment and All Other, increased 20.1% for the three months ended November 30, 2022, compared to the same period in the prior fiscal year, from $387.0 million to $464.9 million. The organic revenue growth rate for other revenue was 19.0%. Revenue growth was positively impacted by 1.3% due primarily to acquisitions and negatively impacted by 0.2% due to foreign currency exchange rate fluctuations.

Cost of uniform rental and facility services consists primarily of production expenses, delivery expenses and the amortization of in service inventory, including uniforms, mats, shop towels and other ancillary items. Cost of uniform rental and facility services increased $89.5 million, or 10.9%, for the three months ended November 30, 2022, compared to the three months ended November 30, 2021. This change from the same period in the prior fiscal year was primarily due to higher Uniform Rental and Facility Services reportable operating segment sales volume, as well as increased energy costs and investments in material cost to support increased revenue growth achieved during the three months ended November 30, 2022.

Cost of other consists primarily of cost of goods sold (predominantly first aid and safety products, personal protective equipment, uniforms, and fire protection products), delivery expenses and distribution expenses in the First Aid and Safety Services reportable operating segment and All Other. Cost of other increased $25.8 million, or 11.7%, for the three months ended November 30, 2022, compared to the three months ended November 30, 2021, primarily due to increased sales volume in each of the underlying operating segments. Cost of other improved as a percentage of revenue, decreasing from 56.8% for three months ended November 30, 2021 to 52.8% for the three months ended November 30, 2022. The improvement in cost of sales as a percent to revenue was primarily due to favorable changes in the sales mix in the First Aid and Safety Services reportable operating segment as well as improved leverage of fixed costs for both the First Aid and Safety Services reportable operating segment and All Other.

Selling and administrative expenses increased $73.6 million, or 14.6%, in the three months ended November 30, 2022, compared to the same period of the prior fiscal year. The increase was primarily due to increases in labor and other employee-partner expenses. Selling and administrative expenses as a percent of revenue were 26.6% for the three months ended November 30, 2022, compared to 26.2% for the same period in the prior fiscal year. Selling and administrative expenses increased as a percent to revenue due to employee-partner related expenses, including medical expenses, increasing at a faster rate than revenue growth in the three months ended November 30, 2022.

Operating income was $444.9 million, or 20.5% of revenue, for the three months ended November 30, 2022, compared to $381.2 million, or 19.8% of revenue, for the three months ended November 30, 2021. The increase in operating income as a percent of revenue was due to previously mentioned improvements in cost of sales slightly offset by the increase in selling and administrative expenses as a percent of revenue.

Net interest expense (interest expense less interest income) was $28.6 million for the three months ended November 30, 2022, compared to $21.8 million for the three months ended November 30, 2021. The change was primarily due to an increase in interest rates on commercial paper and an increase in outstanding commercial paper during the three months ended November 30, 2022 compared to the three months ended November 30, 2021.

Cintas’ effective tax rate was 22.1% and 18.0% for the three months ended November 30, 2022 and 2021, respectively. The effective tax rate in both periods was impacted by certain discrete items, primarily the tax accounting impact for stock-based compensation.

Net income for the three months ended November 30, 2022, increased $29.6 million, or 10.1%, compared to the three months ended November 30, 2021. Diluted earnings per share were $3.12 for the three months ended November 30, 2022, which was an increase of 13.0% compared to the same period in the prior fiscal year. Diluted earnings per share increased primarily due to the increase in net income combined with the decrease in diluted

Table of Contents

weighted average common shares outstanding. The decrease in diluted weighted average common shares outstanding resulted from purchasing an aggregate of approximately 2.7 million shares of common stock under the board approved share buyback programs since the beginning of the third quarter of fiscal 2022 through the second quarter of fiscal 2023.

Uniform Rental and Facility Services Reportable Operating Segment

Three Months Ended November 30, 2022 Compared to Three Months Ended November 30, 2021

Uniform Rental and Facility Services reportable operating segment revenue was $1,710.0 million for the three months ended November 30, 2022 compared to $1,535.3 million for the same period of the prior fiscal year. The organic revenue growth rate for the reportable operating segment was 11.3%. The cost of uniform rental and facility services increased $89.5 million, or 10.9%. The reportable operating segment’s gross margin was $803.3 million. Gross margin as a percentage of revenue was 47.0% for the three months ended November 30, 2022 and 46.8% for the three months ended November 30, 2021. The improvement in gross margin was the result of efficiencies in labor and improved leverage of fixed costs, partially offset by investments in material cost to support increased revenue growth and a 20 basis point increase in energy costs.

Selling and administrative expenses for the Uniform Rental and Facility Services reportable operating segment increased $53.8 million in the three months ended November 30, 2022 compared to the same period of the prior fiscal year. Selling and administrative expenses as a percent of revenue for the three months ended November 30, 2022 was 25.4% compared to the 24.8% in the second quarter of the prior fiscal year. The change as a percent of revenue was primarily due to higher employee-partner related expenses, including medical expenses, in the three months ended November 30, 2022.

Income before income taxes increased $31.5 million, or 9.3%, for the Uniform Rental and Facility Services reportable operating segment for the three months ended November 30, 2022, compared to the same period in the prior fiscal year. Income before income taxes was 21.6% of the reportable operating segment’s revenue, which was a 40 basis point decrease from the second quarter of the prior fiscal year of 22.0%. This decrease as a percent of revenue was primarily due to the previously discussed increase in selling and administrative expenses partially offset by the improvements in gross margin.

First Aid and Safety Services Reportable Operating Segment

Three Months Ended November 30, 2022 Compared to Three Months Ended November 30, 2021

First Aid and Safety Services reportable operating segment revenue increased from $202.2 million to $236.0 million, or 16.7%, for the three months ended November 30, 2022, over the same period in the prior fiscal year. The organic revenue growth rate for the reportable operating segment was 15.1%. First Aid and Safety Services reportable operating segment revenue was positively impacted by 1.9% due to acquisitions and negatively impacted by 0.3% due to foreign currency exchange rate fluctuations. The increase in revenue was driven by many factors including new business sold by sales representatives, penetration of additional products and services into existing customers, price increases and strong customer retention.

Cost of first aid and safety services increased $2.7 million, or 2.4%, for the three months ended November 30, 2022, over the three months ended November 30, 2021, due to higher sales volume. The gross margin as a percent of revenue was 50.5% for the quarter ended November 30, 2022, compared to the gross margin as a percent of revenue of 43.5% in the same period of the prior fiscal year. The improvement in gross margin from the second quarter of the prior fiscal year was primarily driven by favorable changes in the sales mix as well as improved leverage of fixed costs.

Selling and administrative expenses increased $7.7 million in the three months ended November 30, 2022, compared to the same period of the prior fiscal year. Selling and administrative expenses as a percent of revenue for the three months ended November 30, 2022 were 31.2%, compared to 32.6% in the second quarter of the prior fiscal year. The improvement as a percent of revenue from the same period in the prior fiscal year was primarily due to a decrease in bad debt expense and efficiencies realized in selling and administrative labor expenses.

Table of Contents

Income before income taxes for the First Aid and Safety Services reportable operating segment increased $23.4 million to $45.5 million for the three months ended November 30, 2022, compared to the same period in the prior fiscal year. Income before income taxes was 19.3% of the reportable operating segment’s revenue compared to the second quarter of the prior fiscal year of 10.9%. The increase in income before income taxes was due to the previously discussed improvements in gross margin and selling and administrative expenses.

Consolidated Results

Six Months Ended November 30, 2022 Compared to Six Months Ended November 30, 2021

Total revenue increased 13.7% to $4,341.3 million for the six months ended November 30, 2022, compared to $3,819.2 million for the six months ended November 30, 2021. Total organic revenue growth was 13.4%. Organic growth adjusts for the impact of acquisitions, divestitures and foreign currency exchange rate fluctuations. Revenue growth was positively impacted by a net 0.6% due primarily to acquisitions and negatively impacted by 0.3% due to foreign currency exchange rate fluctuations.

Uniform Rental and Facility Services reportable operating segment revenue was $3,407.8 million for the six months ended November 30, 2022, compared to $3,043.4 million in the same period of the prior fiscal year, which was an increase of 12.0%. Organic revenue growth for this reportable operating segment was 11.8%. Uniform Rental and Facility Services reportable operating segment revenue was positively impacted by 0.6% due to acquisitions and negatively impacted by 0.4% due to foreign currency exchange rate fluctuations. Revenue growth was a result of new business, the penetration of additional products and services into existing customers and price increases, partially offset by lost business. New business growth resulted from an increase in the number and productivity of sales representatives.

Other revenue, consisting of revenue from the First Aid and Safety Services reportable operating segment and All Other, was $933.6 million for the six months ended November 30, 2022, compared to $775.8 million for the six months ended November 30, 2021, which was an increase of 20.3%. Other revenue organic growth was 19.8%. Revenue growth was positively impacted by a net 0.7% due primarily to acquisitions and negatively impacted by 0.2% due to foreign currency exchange rate fluctuations.

Cost of uniform rental and facility services consists primarily of production expenses, delivery expenses and the amortization of in service inventory, including uniforms, mats, shop towels and other ancillary items. Cost of uniform rental and facility services increased $200.9 million, or 12.6%, for the six months ended November 30, 2022, compared to the six months ended November 30, 2021. This increase over the same period of the prior fiscal year was due to higher Uniform Rental and Facility Services reportable operating segment sales volume, as well as a 30 basis point increase in energy costs.

Cost of other consists primarily of cost of goods sold (predominantly first aid and safety products, personal protective equipment, uniforms, and fire protection products), delivery expenses and distribution expenses in the First Aid and Safety Services reportable operating segment and All Other. Cost of other increased $58.5 million, or 13.5%, for the six months ended November 30, 2022, compared to the six months ended November 30, 2021. Cost of other improved as a percentage of revenue, decreasing from 56.0% for six months ended November 30, 2021 to 52.8% for the six months ended November 30, 2022. The improvement in cost of sales as a percent to revenue was primarily due to favorable changes in the sales mix in the First Aid and Safety Services reportable operating segment as well as improved leverage of fixed costs for both the First Aid and Safety Services reportable operating segment and All Other.

Selling and administrative expenses increased $152.9 million, or 15.1%, for the six months ended November 30, 2022, compared to the same period in the prior fiscal year. Selling and administrative expenses as a percent to revenue were 26.8% for the six months ended November 30, 2022, compared to 26.5% for the same period of the prior fiscal year. The change as a percent of revenue is primarily due to the $12.1 million gain on the sale of certain operating assets recorded within the Uniform Direct Sales operating segment as a reduction of selling and administrative expenses in the six months ended November 30, 2021.

Operating income was $885.1 million, or 20.4% of revenue, for the six months ended November 30, 2022, compared to $775.3 million, or 20.3% of revenue, for the six months ended November 30, 2021. The improvement in operating income as a percent of revenue was due to the improvements in gross margin for both the First Aid and Safety Services reportable operating segment and All Other, noted above.

Table of Contents

Net interest expense (interest expense less interest income) was $56.1 million for the six months ended November 30, 2022, compared to $43.6 million for the six months ended November 30, 2021. The change was primarily due to an increase in interest rates on commercial paper and an increase in outstanding commercial paper during the six months ended November 30, 2022.

Cintas’ effective tax rate was 18.4% and 14.5% for the six months ended November 30, 2022 and 2021, respectively. The effective tax rate in both periods was impacted by certain discrete items, primarily the tax accounting for stock-based compensation.

Net income for the six months ended November 30, 2022, increased $50.1 million, or 8.0%, compared to the six months ended November 30, 2021. Diluted earnings per share was $6.51 for the six months ended November 30, 2022, which was an increase of 10.9% compared to the same period in the prior fiscal year. Diluted earnings per share increased due to the increase in net income combined with the decrease in diluted weighted average common shares outstanding. The decrease in diluted weighted average common shares outstanding resulted from purchasing an aggregate of approximately 2.7 million shares of common stock under the board approved share buyback programs since the beginning of the third quarter of fiscal 2022 through the second quarter of fiscal 2023.

Uniform Rental and Facility Services Reportable Operating Segment

Six Months Ended November 30, 2022 Compared to Six Months Ended November 30, 2021

Uniform Rental and Facility Services reportable operating segment revenue increased 12.0% to $3,407.8 million for the six months ended November 30, 2022, compared to $3,043.4 million for the same period of the prior fiscal year. Organic revenue growth for this reportable operating segment was 11.8%. The cost of uniform rental and facility services increased $200.9 million, or 12.6%, for the six months ended November 30, 2022 over the same period in the prior fiscal year. The reportable operating segment’s gross margin was $1,610.3 million, or 47.3% of revenue, for the six months ended November 30, 2022, compared to the gross margin of 47.5% for the six months ended November 30, 2021. The change in gross margin was primarily due to a 30 basis point increase in energy costs in the current year.

Selling and administrative expenses for the Uniform Rental and Facility Services reportable operating segment increased $96.5 million, increasing as a percent to revenue for the six months ended November 30, 2022 to 25.7%, compared to 25.6% for the same period of the prior fiscal year. The increase was primarily due to higher employee-partner related expenses, including medical expenses.

Income before income taxes increased $66.9 million, or 10.0%, for the Uniform Rental and Facility Services reportable operating segment for the six months ended November 30, 2022, compared to the same period in the prior fiscal year. Income before income taxes was 21.5% of the reportable operating segment’s revenue, compared to 21.9% for the six months ended November 30, 2021. The change in percent to revenue is due to the reasons previously discussed.

First Aid and Safety Services Reportable Operating Segment

Six Months Ended November 30, 2022 Compared to Six Months Ended November 30, 2021

First Aid and Safety Services reportable operating segment revenue increased from $401.3 million to $470.1 million, or 17.2%, for the six months ended November 30, 2022, over the same period in the prior fiscal year. Organic revenue growth for this reportable operating segment was 15.4%. First Aid and Safety Services reportable operating segment revenue was positively impacted by 1.9% due to acquisitions and negatively impacted by 0.1% due to foreign currency exchange rate fluctuations. Increases in new business sold by sales representatives, penetration of additional products and services into existing customers and strong customer retention.

Cost of first aid and safety services increased $10.9 million, or 4.9%, for the six months ended November 30, 2022, from the six months ended November 30, 2021, due to higher sales volume. The gross margin as a percent of revenue was 50.0% for the six months ended November 30, 2022, which was an increase of 580 basis points compared to the gross margin as a percent of revenue of 44.2% in the same period of the prior fiscal year. The change in gross margin from the first half of the prior fiscal year was primarily driven by favorable changes in the sales mix as well as improved leverage of fixed costs.

Table of Contents

Selling and administrative expenses increased $19.4 million, but decreased as a percent of revenue to 31.7%, for the six months ended November 30, 2022, compared to 32.3% for the six months ended November 30, 2021. The decrease in expenses as a percent of revenue was primarily due efficiencies realized in selling and administrative labor expenses.

Income before income taxes for the First Aid and Safety Services reportable operating segment was $86.3 million for the six months ended November 30, 2022, compared to $47.8 million for the same period in the prior fiscal year. Income before income taxes, at 18.4% of the reportable operating segment’s revenue, increased 650 basis points compared to the same period of the prior fiscal year due to the improvements in both gross margin and selling and administrative expenses.

Liquidity and Capital Resources

The following is a summary of our cash flows and cash and cash equivalents as of and for the six months ended November 30:

(In thousands)	2022		2021
Net cash provided by operating activities	$	619,149	$	593,782
Net cash used in investing activities	$	(171,424)	$	(151,595)
Net cash used in financing activities	$	(446,368)	$	(819,876)
Cash and cash equivalents at the end of the period	$	89,799	$	113,170

Cash and cash equivalents as of November 30, 2022 and 2021, include $29.8 million and $64.8 million, respectively, that is located outside of the U.S.

Cash flows provided by operating activities have historically supplied us with a significant source of liquidity. We generally use these cash flows to fund most, if not all, of our operations and expansion activities and dividends on our common stock. We may also use cash flows provided by operating activities, as well as proceeds from long-term debt and short-term borrowings, to fund growth and expansion opportunities, as well as other cash requirements such as the repurchase of our common stock and payment of long-term debt.

We expect our cash flows from operating activities to remain sufficient to provide us with adequate levels of liquidity. In addition, we have access to $2.0 billion of debt capacity from our amended and restated revolving credit facility. We believe the Company has sufficient liquidity to operate in the current business environment for at least the next 12 months and the foreseeable future thereafter. Acquisitions, repurchases of our common stock and dividends remain strategic objectives, but they will be dependent on the economic outlook and liquidity of the Company.

Net cash provided by operating activities was $619.1 million for the six months ended November 30, 2022, compared to $593.8 million for the six months ended November 30, 2021. The change from the prior fiscal year was primarily due to an increase in net income and favorable changes in working capital, specifically accounts payable and current income taxes, which was partially offset by unfavorable changes in working capital, specifically, accounts receivable and inventories, net which resulted from the growth in revenue.

Net cash used in investing activities includes capital expenditures, purchases of investments, proceeds from sale of operating assets and cash paid for acquisitions of businesses. Capital expenditures were $146.4 million and $108.6 million for the six months ended November 30, 2022 and 2021, respectively. Capital expenditures in the six months ended November 30, 2022, included $105.7 million for the Uniform Rental and Facility Services reportable operating segment and $28.0 million for the First Aid and Safety Services reportable operating segment. The increase in capital expenditures during the six months ended November 30, 2022 over the same period in the prior fiscal year is due to an investment in the operating segments to support continued market penetration and revenue growth. Cash paid for acquisitions of businesses was $15.5 million and $45.7 million for the six months ended November 30, 2022 and 2021, respectively. The acquisitions during both the six months ended November 30, 2022 and 2021, occurred in our Uniform Rental and Facility Services reportable operating segment, our First Aid and Safety Services reportable operating segment and our Fire Protection operating segment, which is included in All Other. During the six months ended November 30, 2021, the Company received proceeds of $15.3 million from the sale of certain operating assets, net of cash disposed in the Uniform Direct Sales operating segment, which is included in All Other.

Table of Contents

Net cash used in investing activities also includes $5.2 million and $6.0 million of purchases of investments during the six months ended November 30, 2022 and 2021, respectively.

Net cash used in financing activities was $446.4 million and $819.9 million for the six months ended November 30, 2022 and 2021, respectively. The decrease in cash used in financing activities was primarily due to the decrease in share buyback activity and debt payments partially offset by the increase in dividends paid in the six months ended November 30, 2022.

The following table summarizes the buyback activity by program for the six months ended November 30:

	2022					2021
Buyback Activity<br><br>(In thousands except per share data)	Shares	Avg. Price<br>per Share		Purchase<br>Price		Shares	Avg. Price<br>per Share		Purchase<br>Price
October 29, 2019	—	$	—	$	—	1,590	$	365.41	$	581,220
July 27, 2021	544	395.97		215,434		—	—		—
July 26, 2022	—	—		—		—	—		—
	544	$	395.97	$	215,434	1,590	$	365.41	$	581,220
Shares acquired for taxes due (1)	326	$	408.97	$	133,248	211	$	395.84	$	83,506
Total repurchase of Cintas common stock				$	348,682				$	664,726

(1) Shares of Cintas common stock acquired for employee payroll taxes due on options exercised and vested restricted stock awards.

Our Board of Directors declared the following dividends:

Paid Dividends
Declaration Date<br><br>(In millions except per share data)	Record<br> Date	Payment<br> Date	Dividend<br>Per Share		Total<br>Amount
Six months ended November 30, 2022
April 12, 2022	May 16, 2022	June 15, 2022	$	0.95	$	97.7
July 26, 2022	August 15, 2022	September 15, 2022	1.15		117.3
			$	2.10	$	215.0
Six months ended November 30, 2021
April 13, 2021	May 15, 2021	June 15, 2021	$	0.75	$	79.1
July 27, 2021	August 13, 2021	September 15, 2021	0.95		98.8
			$	1.70	$	177.9
Accrued Dividends
As of November 30, 2022
October 25, 2022 (1)	November 15, 2022	December 15, 2022	$	1.15	$	117.4
As of November 30, 2021
October 26, 2021 (1)	November 15, 2021	December 15, 2021	$	0.95	$	99.1

(1) The dividends declared during the three months ended November 30, 2022 and 2021 were included in current accrued liabilities on the consolidated condensed balance sheet at November 30, 2022 and 2021.

Table of Contents

Any future dividend declarations, including the amount of any dividends, are at the discretion of the Board of Directors and dependent upon then-existing conditions, including the Company's consolidated operating results and consolidated financial condition, capital requirements, contractual restrictions, business prospects and other factors that the Board of Directors may deem relevant.

During the six months ended November 30, 2022 and 2021, Cintas issued a net $124.0 million and $167.0 million of commercial paper, respectively. On June 1, 2021, in accordance with the terms of the notes, Cintas paid the $250.0 million aggregate principal amount of its 4.30%, 10-year senior notes that matured on that date with cash on hand. The following table summarizes Cintas' outstanding debt:

(In thousands)	Interest<br> Rate			Fiscal Year<br>Issued	Fiscal Year<br> Maturity	November 30, <br>2022		May 31,<br>2022
Debt due within one year
Commercial paper	4.30	%	(1)	2023	2023	$	385,246	$	261,200
Senior notes (2)	2.78	%		2013	2023	50,163		50,380
Debt issuance costs						(3)		(6)
Total debt due within one year						$	435,406	$	311,574
Debt due after one year
Senior notes (3)	3.11	%		2015	2025	$	50,798	$	50,965
Senior notes	3.45	%		2022	2025	400,000		400,000
Senior notes	3.70	%		2017	2027	1,000,000		1,000,000
Senior notes	4.00	%		2022	2032	800,000		800,000
Senior notes	6.15	%		2007	2037	250,000		250,000
Debt issuance costs						(15,521)		(17,033)
Total debt due after one year						$	2,485,277	$	2,483,932

(1) Variable rate debt instrument. The rate presented is the variable borrowing rate at November 30, 2022.

Cintas has certain covenants related to debt agreements. These covenants limit our 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 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 of the debt covenants for all periods presented.

Our access to the commercial paper and long-term debt markets has historically provided us with sources of liquidity. We do not anticipate having difficulty in obtaining financing from those markets in the future in view of our favorable experiences in the debt markets in the recent past. Additionally, our ability to continue to access the commercial paper and long-term debt markets on favorable interest rate and other terms will depend, to a significant

Table of Contents

degree, on the ratings assigned by the credit rating agencies to our indebtedness. As of November 30, 2022, our ratings were as follows:

Rating Agency	Outlook	Commercial<br>Paper	Long-term<br> Debt
Standard & Poor’s	Stable	A-2	A-
Moody’s Investors Service	Stable	P-2	A3

In the event that the ratings of our commercial paper or our outstanding long-term debt issues were substantially lowered or withdrawn for any reason, or if the ratings assigned to any new issue of long-term debt securities were significantly lower than those noted above, particularly if we no longer had investment grade ratings, our ability to access the debt markets may be adversely affected. In addition, in such a case, our cost of funds for new issues of commercial paper and long-term debt would be higher than our cost of funds would have been had the ratings of those new issues been at or above the level of the ratings noted above. The rating agency ratings are not recommendations to buy, sell or hold our commercial paper or debt securities. Each rating may be subject to revision or withdrawal at any time by the assigning rating organization and should be evaluated independently of any other rating. Moreover, each credit rating is specific to the security to which it applies.

To monitor our credit rating and our capacity for long-term financing, we consider various qualitative and quantitative factors. One such factor is the ratio of our total debt to EBITDA. For the purpose of this calculation, debt is defined as the sum of short-term borrowings, long-term debt due within one year, long-term debt and standby letters of credit.

Table of Contents

Financial and Nonfinancial Disclosure About Issuers and Guarantors of Cintas’ Senior Notes

Cintas Corporation No. 2 (Corp. 2) is the indirectly, wholly owned principal operating subsidiary of Cintas. Corp. 2 is the issuer of the $2,550.0 million aggregate principal amount of senior notes outstanding as of November 30, 2022, which are unconditionally guaranteed, jointly and severally, by Cintas Corporation and its wholly owned, direct and indirect domestic subsidiaries.

Basis of Preparation of the Summarized Financial Information

The following tables include summarized financial information of Cintas Corporation (Issuer), Corp. 2 and subsidiary guarantors (together, the Obligor Group). Investments in and equity in the earnings of non-guarantors, which are not members of the Obligor Group, have been excluded. Non-guarantor subsidiaries are located outside the U.S., and therefore, excluded from the Obligor Group.

The summarized financial information of the Obligor Group is presented on a combined basis with intercompany balances and transactions between entities in the Obligor Group eliminated. The Obligor Group’s amounts due from, amounts due to and transactions with non-guarantors have been presented in separate line items, if they are material. Summarized financial information of the Obligor Group is as follows:

	Six Months Ended
Summarized Consolidated Condensed Statement of Income<br><br>(In thousands)	November 30, <br>2022		November 30, <br>2021
Net sales to unrelated parties	$	4,105,128	$	3,599,543
Net sales to non-guarantors	$	7,227	$	3,242
Operating income	$	861,404	$	749,944
Net income	$	658,665	$	607,272
Summarized Consolidated Condensed Balance Sheets<br><br>(In thousands)	November 30, <br>2022		May 31,<br>2022
---	---	---	---	---
ASSETS
Receivables due from non-obligor subsidiaries	$	7,350	$	11,759
Total other current assets	$	2,696,839	$	2,427,494
Total other noncurrent assets	$	5,130,643	$	5,081,265
LIABILITIES
Amounts due to non-obligor subsidiaries	$	836	$	11,383
Current liabilities	$	1,521,610	$	1,388,310
Noncurrent liabilities	$	3,386,322	$	3,346,851

Table of Contents

Litigation and Other Contingencies

Cintas is subject to legal proceedings, insurance receipts, legal settlements and claims arising from the ordinary course of its business, including personal injury, customer contract, environmental and employment claims. In the opinion of management, the aggregate liability, if any, with respect to such ordinary course of business actions will not have a material adverse effect on the consolidated financial position, consolidated results of operations or consolidated cash flows of Cintas. Cintas is also party to additional litigation not considered in the ordinary course of business. See Note 13 entitled Litigation and Other Contingencies of “Notes to Consolidated Condensed Financial Statements” for a detailed discussion of such additional litigation.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains 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 Quarterly Report. Factors that might cause such a difference include, but are not limited to, 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; inflationary pressures and fluctuations in costs of materials and labor, including increased medical costs; interest rate volatility; 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; our ability to meet our goals relating to environmental, social and governance (ESG) opportunities, improvements and efficiencies; the cost, results and ongoing assessment of internal controls for financial reporting; the effect of new accounting pronouncements; 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 including global health pandemics such as the COVID-19 coronavirus; 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, 2022 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.

Table of Contents

ITEM 3.

QUANTITATIVE AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

In our normal operations, Cintas has market risk exposure to interest rates. There has been no material change to this market risk exposure to interest rates from that which was previously disclosed on page 30 of our Annual Report on Form 10-K for the year ended May 31, 2022.

Through its foreign operations, Cintas is exposed to foreign currency risk. Foreign currency exposures arise from transactions denominated in a currency other than the functional currency and from foreign currency denominated revenue and profit translated into U.S. dollars. The primary foreign currency to which Cintas is exposed is the Canadian dollar.

ITEM 4.

CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

With the participation of Cintas’ management, including Cintas’ President and Chief Executive Officer, Chief Financial Officer, General Counsel and Controllers, Cintas has evaluated the effectiveness of the disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (Exchange Act)) as of November 30, 2022. Based on such evaluation, Cintas’ management, including Cintas’ President and Chief Executive Officer, Chief Financial Officer, General Counsel and Controllers, has concluded that Cintas’ disclosure controls and procedures were effective as of November 30, 2022, in ensuring (i) information required to be disclosed by Cintas in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms and (ii) information required to be disclosed by Cintas in the reports that it files or submits under the Exchange Act is accumulated and communicated to Cintas’ management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Internal Control over Financial Reporting

There were no changes in Cintas’ internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter ended November 30, 2022, that have materially affected, or are reasonably likely to materially affect, Cintas' internal control over financial reporting.

Table of Contents

Part II. Other Information

ITEM 1.

LEGAL PROCEEDINGS

We discuss material legal proceedings (other than ordinary routine litigation incidental to our business) pending against us in “Part I, Item 1. Financial Statements,” in Note13 entitled Litigation and Other Contingencies of “Notes to Consolidated Condensed Financial Statements.” We refer you to and incorporate by reference into this Part II, Item 1 that discussion for important information concerning those legal proceedings.

ITEM 2.

UNREGISTERED SALES OF EQUITY

SECURITIES AND USE OF PROCEEDS

Period<br><br>(In millions, except share and per share data)	Total number<br>of shares<br>purchased	Average<br>price paid<br>per share		Total number of<br><br>shares purchased<br><br>as part of the<br><br>publicly announced<br><br>plan (1)	Maximum<br><br>approximate dollar<br><br>value of shares<br><br>that may yet be<br><br>purchased under<br><br>the plan (1)
September 1 - 30, 2022 (2)	6,839	$	407.57	—	$	1,465.9
October 1 - 31, 2022 (3)	41,290	$	401.93	12,400	$	1,461.2
November 1 - 30, 2022 (4)	20,132	$	445.28	—	$	1,461.2
Total	68,261	$	415.28	12,400	$	1,461.2

(1) On July 27, 2021, Cintas announced that the Board of Directors authorized a $1.5 billion share buyback program, which does not have an expiration date. From the inception of the July 27, 2021 share buyback program through November 30, 2022, Cintas has purchased a total of 2.7 million shares of Cintas common stock at an average price of $385.62 per share for a total purchase price of $1.0 billion. On July 26, 2022, Cintas announced that the Board of Directors authorized a new $1.0 billion share buyback program, which does not have an expiration date. There were no share buybacks under the July 26, 2022 share buyback program through November 30, 2022.

(2) During September 2022, Cintas acquired 6,839 shares of Cintas common stock in trade for employee payroll taxes due on options exercised and restricted stock awards that vested during the fiscal year. These shares were acquired at an average price of $407.57 per share for a total purchase price of $2.8 million.

(3) During October 2022, Cintas acquired 28,890 shares of Cintas common stock in trade for employee payroll taxes due on options exercised and restricted stock awards that vested during the fiscal year. These shares were acquired at an average price of $412.36 per share for a total purchase price of $11.9 million.

(4) During November 2022, Cintas acquired 20,132 shares of Cintas common stock in trade for employee payroll taxes due on options exercised and restricted stock awards that vested during the fiscal year. These shares were acquired at an average price of $445.28 per share for a total purchase price of $9.0 million.

Table of Contents

ITEM 6.

EXHIBITS

3.1	Restated Articles of Incorporation, as amended
22	Subsidiary Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize Securities of the Registrant (Incorporated by reference to Exhibit 22 to Cintas' Annual Report on Form 10-K for the year ended May 31, 2022)
31.1	Certification of Principal Executive Officer required by Rule 13a-14(a)
31.2	Certification of Principal Financial Officer required by Rule 13a-14(a)
32.1	Section 1350 Certification of Chief Executive Officer
32.2	Section 1350 Certification of Chief Financial Officer
101	The following financial statements from Cintas' Quarterly Report on Form 10-Q for the period ended November 30, 2022, formatted in Inline XBRL: (i) Consolidated Condensed Statements of Income (unaudited), (ii) Consolidated Condensed Statements of Comprehensive Income (unaudited), (iii) Consolidated Condensed Balance Sheets (unaudited), (iv) Consolidated Condensed Statements of Shareholders' Equity (unaudited), (v) Consolidated Condensed Statements of Cash Flows (unaudited) and (vi) Notes to Consolidated Condensed Financial Statements, tagged as blocks of text and including detailed tags
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

Table of Contents

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		CINTAS CORPORATION
		(Registrant)
Date:	January 6, 2023	/s/	J. Michael Hansen
			J. Michael Hansen
			Executive Vice President and Chief Financial Officer
			(Principal Financial and Accounting Officer)

Document

Exhibit 3.1

RESTATED ARTICLES OF INCORPORATION CINTAS CORPORATION

The undersigned, being an officer of Cintas Corporation, a corporation organized under the laws of the State of Washington (the “Corporation”), does hereby certify that the following Restated Articles of Incorporation of Cintas Corporation correctly set forth without change the provisions of the Articles of Incorporation as theretofore amended and that the Restated Articles of Incorporation supersede the original Articles of incorporation and all amendments thereto:

FIRST. The name of the Corporation shall be Cintas Corporation.

SECOND. The address of the initial registered office of the Corporation in Washington shall be 1218 Third Avenue, Seattle, Washington 98101 and its initial registered agent at such address shall be CT Corporation System.

THIRD. The period of duration of the Corporation shall be perpetual.

FOURTH. The purposes for which the Corporation is organized shall be to design, manufacture, rent and distribute uniforms and to transact any or all lawful business for which corporations may be incorporated under laws of Washington.

FIFTH. The maximum number of shares which the Corporation is authorized to have outstanding is:

A.30,000,000 shares of Common Stock, without par value and

B.100,000 shares of Preferred Stock, without par value.

The Common Stock is subject to the rights and preferences of the Preferred Stock as hereinafter set forth.

The Preferred Stock may be issued from time to time in one or more series in any manner permitted by law and the provisions of these Articles of Incorporation of the Corporation, as determined from time to time by the Board of Directors and stated in the resolution or resolutions providing for the issuance thereof, prior to the issuance of any shares thereof. The Board of Directors shall have the authority to fix and determine and to amend, subject to the provisions hereof, the rights and preferences of the shares of any series that is wholly unissued or to be established. Unless otherwise specifically provided in the resolution establishing any series, the Board of Directors shall further have the authority, after the issuance of shares of a series whose number it has designated, to amend the resolution establishing such series to decrease the number of shares of that series, but not below the number of shares of such series then outstanding.

The holders of shares of the Preferred Stock shall be entitled to receive dividends, out of the funds of the Corporation legally available therefor, at the rate and at the time or times, whether cumulative or noncumulative, as may be provided by the Board of Directors in designating a particular series of Preferred Stock. If such dividends on the Preferred Stock shall be cumulative, then if dividends shall not have been paid, the deficiency shall be fully paid or the dividends declared and set apart for payment at such rate, but without interest on cumulative dividends, before any dividends on the Common Stock shall be paid or declared and set apart for payment. The holders of the Preferred Stock shall not be entitled to receive any dividends thereon other than the dividends referred to in this section.

The Preferred Stock may be redeemable at such price, in such amount, and at such time or times as may be provided by the Board of Directors in designating a particular series of Preferred Stock. In any event, such Preferred Stock may be repurchased by the Corporation to the extent legally permissible.

In the event of any liquidation, dissolution or winding up of the affairs of the Corporation, whether voluntary or involuntary, then, before any distribution shall be made to the holders of the Common Stock, the holders of the Preferred Stock at the time outstanding shall be entitled to be paid the preferential amount or amounts per share as may be provided by the Board of Directors in designating a particular series of

Preferred Stock and dividends accrued thereon to the date of such payment. The holders of the Preferred Stock shall not be entitled to receive any distributive amounts upon the liquidation, dissolution, or winding up of the affairs of the Corporation other than the distributive amounts referred to in this section, unless otherwise provided by the Board of Directors in designating a particular series of Preferred Stock.

Shares of Preferred Stock may be convertible to Common Stock of the Corporation upon such terms and conditions, at such rate and subject to such adjustments as may be provided by the Board of Directors in designating a particular series of Preferred Stock.

Holders of Preferred Stock shall have such voting rights as may be provided by the Board of Directors in designating a particular series of Preferred Stock.

SIXTH. No holder of any shares of this Corporation shall have any pre-emptive rights to subscribe for or to purchase any shares of this Corporation of any class whether such shares or such class be now or hereafter authorized or to purchase or subscribe for securities convertible into or exchangeable for shares of any class or to which shall be attached or appertained any warrants or rights entitling the holder thereof to purchase or subscribe for shares of any class.

SEVENTH. No holder of any shares of this Corporation shall have the right to cumulate votes in the election of directors or on any other matter voted upon by shareholders.

EIGHTH. This Corporation elects not to be covered by the provisions of Section 23A.08.425 of the Washington Business Corporation Act concerning transactions with interested shareholders whether or not this Corporation may at any time have three hundred or more holders of record of its shares.

NINTH. The right of shareholders to call special meetings of the shareholders of this corporation shall be limited and reserved to the holders of 50% or more of the shares of all classes of this Corporation outstanding and entitled to vote at any such meeting.

TENTH. The Board of Directors shall have the power to adopt, amend or repeal the By-Laws of this Corporation, subject to the power of the shareholders to amend or repeal such By-Laws. The shareholders shall also have the power to amend or repeal the By-Laws of this Corporation and to adopt new By-Laws.

ELEVENTH. This Corporation reserves the right to amend or repeal any of the provisions contained in these Articles of Incorporation in any manner now or hereafter permitted by law, and the rights of the shareholders of this Corporation are granted subject to this reservation.

TWELFTH. The initial Board of Directors consists of three persons. The directors constituting the initial Board of Directors and the addresses of such persons are as follows:

Name<br><br>Richard T. Farmer	Address<br><br>Cintas Corporation<br><br>11255 Reed Hartman Highway<br><br>Cincinnati, Ohio 45241
Robert J. Kohlehepp	Cintas Corporation<br><br>11255 Reed Hartman Highway<br><br>Cincinnati, Ohio 45241
Donald P. Klekamp	One East Fourth Street<br><br>Cincinnati, Ohio 45202

THIRTEENTH. The name and address of the incorporator is Gary P. Kreider, 1800 Provident Tower, One East Fourth Street, Cincinnati, Ohio 45202.

FOURTEENTH. BUSINESS COMBINATIONS

A. Voting Requirements for Business Combinations

In addition to any affirmative vote required by law or the Articles, no Business Combination may be effected with an Interested Shareholder for a period of five years following the date that such shareholder became an Interested Shareholder, unless approved by the affirmative vote of the holders of outstanding voting securities of the Corporation entitled to exercise two-thirds of the combined voting power of the Corporation and by the affirmative vote of two-thirds of the voting securities beneficially owned by Disinterested Shareholders.

B. Fair Price Requirement

Within 25 days after a corporation, person or other entity becomes an Interested Shareholder, such Interested Shareholder shall give written notice to each holder of voting securities or securities convertible into or exchangeable for voting securities, or options, warrants or rights to purchase voting securities or securities convertible into or exchangeable for voting securities of the Corporation stating that it is an Interested Shareholder and that such holder may sell any of the above-mentioned securities to the Interested Shareholder for cash at the price, as determined below. Within 25 days after a holder receives the above notice, the holder may send written demand to the Interested Shareholder stating the number, class and identifying number of the securities to be sold to the Interested Shareholder. Within 10 days after the holder sends written demand, the Interested Shareholder must purchase the securities identified in the written demand. Upon expiration of the 10 day purchase period, any holder of securities entitled to written notice under this section may institute an action or proceeding in any court of law or equity to enforce his or her rights under this section.

1.The price for all securities to be purchased by an Interested Shareholder shall be the higher of (a) the highest price paid per security by the Interested Shareholder for the voting securities at any time plus an increment representing any value, including, without limitation, any proportion of any value payable for acquisition of control of the Corporation, that may not be reflected in such price or (b) the highest price per security of the voting securities traded on the securities markets in which the Corporation’s securities are traded during the 45 day period commencing 30 days prior to the date such Interested Shareholder became an Interested Shareholder.

1.For purposes of determining the price, all convertible or exchangeable securities shall be deemed to be converted or exchanged and all options, warrants and rights shall be treated as being exercised. That portion of the price equal to the exercise price for options, warrants and rights shall be paid to the Corporation and the balance to the holders thereof.

2.If an Interested Shareholder does not send notice or purchase securities as required by this section, the Corporation, at its option, may assume the obligations of the Interested Shareholders.

3.Regardless of anything contained in this subsection, in the event any court of law or equity declares an Interested Shareholder’s duty to purchase securities under this section unenforceable, the Corporation shall purchase such securities for cash at the price determined by the application of subsection (1) above.

C. Definitions

For the purposes of this Article, certain terms are defined as follows:

1.“Business Combination” means:

1.1 Any merger or consolidation of the Corporation or any direct or indirect subsidiary, partnership, trust or other business entity of the Corporation with or into an Interested Shareholder or subsidiary, Affiliate or Associate of an Interested Shareholder, or any other

corporation, person or other entity if the merger or consolidation is caused by an Interested Shareholder; or

1.2 Any sale, lease, exchange, mortgage, pledge, transfer or other disposition, whether in one transaction or a series of transactions, to or with an Interested Shareholder or subsidiary, Affiliate or Associate of an Interested Shareholder, of assets of the Corporation or any direct or indirect subsidiary, partnership, trust or other business entity of the Corporation, which assets have an aggregate market value equal to 10% or more of either the aggregate market value of all the assets of the Corporation determined on a consolidated basis or the aggregate market value of all the outstanding stock of the Corporation; or

1.3 Any sale, lease, exchange, mortgage, pledge, transfer or other disposition, whether in one transaction or a series of transactions, to the Corporation or any subsidiary, partnership, trust or other business entity of the Corporation of any assets in exchange for voting securities or securities convertible into or exchangeable for voting securities, or options, warrants or rights to purchase voting securities or securities convertible into or exchangeable for voting securities, of the Corporation or any subsidiaries of the Corporation by an Interested Shareholder or subsidiary, Affiliate or Associate of an Interested Shareholder; or

1.4 Any reclassification of securities of the Corporation, recapitalization or other transaction which has the effect, directly or indirectly, of increasing the voting power of an Interested Shareholder or a subsidiary, Affiliate or Associate of an Interested Shareholder; or

1.5 Any receipt by an Interested Shareholder or a subsidiary Affiliate or Associate of an Interested Shareholder, except proportionately as a shareholder, of the benefit, directly or indirectly of any loans, advances, guarantees, pledges, or other financial benefits provided by or through the Corporation or any direct or indirect subsidiary, partnership, trust or other business entity of the Corporation, except proportionately as a shareholder; or

1.6 Any action by an Interested Shareholder which results in the termination of the Corporation’s existence as a corporation formed under the Washington Business Corporation Act; or

1.7 The adoption of any plan or proposal for the partial or complete liquidation or dissolution of the Corporation proposed by or on behalf of an Interested Shareholder.

2.“Interested Shareholder” means any corporation, person or other entity which is the beneficial owner, directly or indirectly, of outstanding voting securities of the Corporation representing 15% or more of the votes then entitled to be voted in the election of the Directors of the Corporation; provided, however, that the term “Interested Shareholder” shall not include any corporation, person, or entity who (a) was an Interested Shareholder as of the effective date of this Article FOURTEENTH or (b) acquired said securities from a person described in (a) above by gift, inheritance or in a transaction in which no consideration was exchanged.

Any corporation, person or other entity will be deemed to be the beneficial owner of any voting securities:

(a) Which it owns directly, whether or not of record; and

(b) Which it (i) has the right to acquire, whether such right is exercisable immediately or after the passage of time and whether or not such right is exercisable only after specified conditions are met, pursuant to any agreement or arrangement or understanding or upon exercise of conversion rights, exchange rights, warrants or options or otherwise or (ii) has the right to vote pursuant to any agreement or arrangement or understanding; and

(c) Which are beneficially owned, directly or indirectly, including securities deemed to be owned through application of clause (b) above, by an “Affiliate” or “Associate”; and

(d) Which are beneficially owned, directly or indirectly, including securities deemed owned through application of clause (b) above, by any other corporation, person or other entity with which the Interested Shareholder or any of its Affiliates or Associates, has any agreement or arrangement or understanding for the purpose of acquiring, holding, voting or disposing of voting securities of the Corporation.

3.An “Affiliate” or a corporation, person or other entity “affiliated” with a specified corporation, person or other entity means a corporation, person or other entity that directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, the corporation, person or other entity specified. The term “Associate”, when used to indicate a relationship with any corporation, person or other entity means (a) any corporation or organization other than the Corporation or subsidiaries of the Corporation, of which such corporation, person or other entity is an officer or partner or is, directly or indirectly, the beneficial owner of Ten Percent (10%) or more of any class of voting securities, (b) any trust or other estate in which such corporation, person or other entity has a substantial beneficial interest or as to which such corporation, person or other entity served as trustee or in similar fiduciary capacity and (c) any relative or spouse of such person, or relative of such spouse, who has the same home of such person or who was a director or officer of the corporation or organization or any of its parents or subsidiaries.

4.“Disinterested Director” means any member of the Board of Directors who is not an Interested Shareholder, Affiliate or Associate of an Interested Shareholder or any of their Affiliates or Associates.

5.“Disinterested Shareholder” means the owner of voting securities other than those beneficially owned by an Interested Shareholder.

D. Director Approval

6.The provisions of Section A of this Article shall not be applicable if the Business Combination shall have been approved by a majority of the Disinterested Directors prior to the consummation of such Business Combination.

7.The provisions of Section B of this Article shall not be applicable if the transaction or series of transactions by which a corporation, person or other entity became an Interested Shareholder shall have been approved by a majority of the Disinterested Directors.

E. Amendments to Article Fourteenth

The affirmative vote of a majority of the Disinterested Directors and the affirmative vote of the holders of outstanding voting securities of the Corporation entitled to exercise two-thirds of the voting power of the Corporation and the affirmative vote of two-thirds of the voting securities beneficially owned by Disinterested Shareholders shall be required to amend any provision of this Article TWELFTH.

FIFTEENTH. To the full extent that the Washington Business Corporation Act, as it exists on the date hereof or may hereafter be amended, permits the limitation or elimination of the liability of Directors, a Director of this Company shall not be liable to this Company or its shareholders for monetary damages for conduct as a Director. Any amendments to or repeals of this Article Fifteenth shall not adversely affect any right or protection of a Director of this Company for or with respect to any acts or omissions of such Director occurring prior to such amendment or repeal.

THESE RESTATED ARTICLES WERE ADOPTED BY RESOLUTION OF THE BOARD OF DIRECTORS.

Signed in Cincinnati, Ohio this 1st of March, 1989.

/s/ Robert J. Kohlhepp Robert J. Kohlhepp President

ARTICLES OF AMENDMENT OF CINTAS CORPORATION

Pursuant to the provisions of RWC 23B.10 of the Washington Business Corporation Act, the following Articles of Amendment to the Restated Articles of Incorporation are herewith submitted for filing:

ARTICLE 1:The name of record of the corporation is Cintas Corporation.

ARTICLE 2:The amendment to the Restated Articles of Incorporation as adopted is as follows:

(1) Article Fifth, paragraph one, is changed to read as follows:

FIFTH: The maximum number of shares which the Corporation is authorized to have outstanding is:

A. 90,000,000 shares of Common Stock, without par value and

B. 100,000 shares of Preferred Stock, without par value.

ARTICLE 3:The amendment does not provide for an exchange, reclassification or cancellation of issued shares.

ARTICLE 4:The date of the adoption of the amendment was October 24, 1991.

ARTICLE 5:The amendment was adopted by the Shareholders of the Corporation in accordance with the provisions of RCW 23B.10.030 and 23B.10.040.

ARTICLE 6:The number of shares of each class entitled to vote as a class that voted for and against amendment to Article Fifth was:

Amendment	Number of Shares<br><br>of Common Stock
Article Fifth	For:	17,309,793
	Against:	1,657,763
	Abstain:	2,781,506

I certify that I am an officer of Cintas Corporation and am authorized to execute these Articles on behalf of the Corporation.

Dated: October 31, 1991 /s/Robert J. Kohlhepp Name: Robert J. Kohlhepp Title: President

ARTICLES OF AMENDMENT OF CINTAS CORPORATION

Pursuant to the provisions of RWC 23B.10 of the Washington Business Corporation Act, the following Articles of Amendment to the Restated Articles of Incorporation are herewith submitted for filing:

ARTICLE 1:The name of record of the corporation is Cintas Corporation.

ARTICLE 2:The amendment to the Restated Articles of Incorporation as adopted is as follows:

(1) Article Fifth, paragraph one, is changed to read as follows:

FIFTH: The maximum number of shares which the Corporation is authorized to have outstanding is:

A. 120,000,000 shares of Common Stock, without par value and

B. 100,000 shares of Preferred Stock, without par value.

ARTICLE 3:The amendment does not provide for an exchange, reclassification or cancellation of issued shares.

ARTICLE 4:The date of the adoption of the amendment was October 27, 1992.

ARTICLE 5:The amendment was adopted by the Shareholders of the Corporation in accordance with the provisions of RCW 23B.10.030 and 23B.10.040.

ARTICLE 6:The number of shares of each class entitled to vote as a class that voted for and against amendment to Article Fifth was:

Amendment	Number of Shares<br><br>of Common Stock
Article Fifth	For:	38,683,425
	Against:	1,250,328
	Abstain:	27,064

I certify that I am an officer of Cintas Corporation and am authorized to execute these Articles on behalf of the Corporation.

Dated: November 4, 1992 /s/Robert J. Kohlhepp Name: Robert J. Kohlhepp Title: President

ARTICLES OF AMENDMENT OF CINTAS CORPORATION

The following Articles of Amendment are executed by the undersigned, a Washington corporation:

1.The name of the corporation is Cintas Corporation.

2.Effective upon filing of these Articles of Amendment with the Secretary of State of Washington, Articles "EIGHTH" and "TWELFTH" of the Articles of Incorporation of the corporation are amended to read as follows:

EIGHTH. This Corporation elects to be covered by the provisions of Section 23B.17.020 of the Washington Business Corporation Act concerning transactions with interested shareholders.

TWELFTH. The number of Directors of this Corporation shall be determined in the manner provided by the Bylaws and may be increased or decreased in the manner provided therein. The Directors of this Corporation may be removed only for cause; such removal shall be by the holders of not less than two-thirds of the shares entitled to elect the Director or Director whose removal is sought in the manner provided by the Bylaws.

3.The date of adoption of the amendments by the shareholders of the corporation is October 13, 1994.

4.The amendments were duly approved by the shareholders in accordance with provisions of RCW 23B.10.030 and RCW 23B.10.040.

These Articles of Amendment are executed by said corporation by its duly authorized officer.

Dated: October 13, 1994

CINTAS CORPORATION

By: /s/Robert J. Kohlhepp

Robert J. Kohlhepp President

ARTICLES OF AMENDMENT OF CINTAS CORPORATION

Pursuant to the provisions of RWC 23B.10 of the Washington Business Corporation Act, the following Articles of Amendment to the Restated Articles of Incorporation are herewith submitted for filing:

ARTICLE 1:The name of record of the corporation is Cintas Corporation.

ARTICLE 2:The amendment to the Restated Articles of Incorporation as adopted is as follows:

(1) Article Fifth, paragraph one, is changed to read as follows:

FIFTH: The maximum number of shares which the Corporation is authorized to have outstanding is:

A. 300,000,000 shares of Common Stock, without par value and

B. 100,000 shares of Preferred Stock, without par value.

ARTICLE 3:The amendment does not provide for an exchange, reclassification or cancellation of issued shares.

ARTICLE 4:The date of the adoption of the amendment was October 21, 1998.

ARTICLE 5:The amendment was adopted by the Shareholders of the Corporation in accordance with the provisions of RCW 23B.10.030 and 23B.10.040.

ARTICLE 6:The number of shares of each class entitled to vote as a class that voted for and against amendment to Article Fifth was:

Amendment	Number of Shares<br><br>of Common Stock
Article Fifth	For:	84,071,496
	Against:	11,113,728
	Abstain:	226,132

I certify that I am an officer of Cintas Corporation and am authorized to execute these Articles on behalf of the corporation.

Dated: October 21, 1998 /s/Robert J. Kohlhepp Name: Robert J. Kohlhepp Title: Chief Financial Officer

ARTICLES OF AMENDMENT OF CINTAS CORPORATION

Pursuant to the provisions of RWC 23B.10 of the Washington Business Corporation Act, the following Articles of Amendment to the Restated Articles of Incorporation are herewith submitted for filing:

ARTICLE 1:The name of record of the corporation is Cintas Corporation.

ARTICLE 2:The amendment to the Restated Articles of Incorporation as adopted is as follows:

(1) Article Fifth, paragraph one, is changed to read as follows:

FIFTH: The maximum number of shares which the Corporation is authorized to have outstanding is:

A. 425,000,000 shares of Common Stock, without par value and

B. 100,000 shares of Preferred Stock, without par value.

ARTICLE 3:The amendment does not provide for an exchange, reclassification or cancellation of issued shares.

ARTICLE 4:The date of the adoption of the amendment was October 25, 2000.

ARTICLE 5:The amendment was adopted by the Shareholders of the Corporation in accordance with the provisions of RCW 23B.10.030 and 23B.10.040.

ARTICLE 6:The number of shares of each class entitled to vote as a class that voted for and against amendment to Article Fifth was:

Amendment	Number of Shares<br><br>of Common Stock
Article Fifth	For:	153,920,786
	Against:	1,226,506
	Abstain:	195,487

I certify that I am an officer of Cintas Corporation and am authorized to execute these Articles on behalf of the corporation.

Dated: October 25, 2000

/s/Scott Farmer

Name: Scott Farmer Title: President

ARTICLES OF AMENDMENT

CINTAS CORPORATION

Pursuant to the provisions of RWC 23B.10 of the Washington Business Corporation Act, the following Articles of Amendment to the Restated Articles of Incorporation are herewith submitted for filing:

ARTICLE 1: The name of the corporation is Cintas Corporation.

ARTICLE 2: The amendments to the Restated Articles of Incorporation as adopted are as follows:

(1) Article TWELFTH of the Restated Articles of Incorporation is amended to read as follows:

TWELFTH. The number of Directors of this Corporation shall be determined in the manner provided by the Bylaws and may be increased or decreased in the manner provided therein. The Directors of this Corporation may be removed only for cause; the removal of a Director shall be effected only if the number of votes cast to remove such Director exceeds the number of votes cast not to remove such Director (with abstentions and broker non-votes not considered votes cast).

(2) Article SIXTEENTH is added to the Restated Articles of Incorporation as follows:

SIXTEENTH. To the extent shareholder approval is required under Washington law, a plan of merger, share exchange, sale of substantially all of the Corporation’s assets, or dissolution must be approved by the affirmative vote of a majority of the Corporation’s outstanding shares entitled to vote, or if separate voting by voting groups is required, then by not less than a majority of all the votes entitled to be cast by that voting group.

ARTICLE 3: The amendments do not provide for an exchange, reclassification or cancellation of issued shares.

ARTICLE 4: The date of the adoption of the amendments was October 25, 2022.

ARTICLE 5: The amendments were adopted by the Shareholders of the Corporation in accordance with the provisions of RCW 23B.10.030 and 23B.10.040.

ARTICLE 6: The number of shares of each class entitled to vote as a class that voted for and against the amendment to Article TWELFTH and the addition of Article SIXTEENTH was:

Amendment	Number of Shares of<br><br>Common Stock
Article TWELFTH	For:	59,612,413
	Against:	27,431,931
	Abstain:	2,348,111
Article SIXTEENTH	For:	59,570,986
	Against:	27,463,354
	Abstain:	2,358,115

I certify that I am an officer of Cintas Corporation and am authorized to execute these Articles of Amendment on behalf of the corporation.

Dated: October 31, 2022

/s/ Todd M. Schneider
Name: Todd M. Schneider
Title: President and Chief Executive Officer

Document

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO RULE 13a–14(a)

I, Todd M. Schneider certify that:

1.I have reviewed this quarterly report on Form 10-Q of Cintas Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	January 6, 2023	/s/ Todd M. Schneider
		Todd M. Schneider
		President and Chief Executive Officer
		(Principal Executive Officer)

Document

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO RULE 13a–14(a)

I, J. Michael Hansen, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Cintas Corporation;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	January 6, 2023	/s/ J. Michael Hansen
		J. Michael Hansen
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)

Document

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to 18 U.S.C. § 1350, as adopted pursuant to

§ 906 of the Sarbanes-Oxley Act of 2002

In connection with the filing with the Securities and Exchange Commission of the Report of Cintas Corporation (the “Company”) on Form 10-Q for the period ended November 30, 2022 (the “Report”), I, Todd M. Schneider, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods presented.

/s/ Todd M. Schneider
Todd M. Schneider
(Principal Executive Officer)

January 6, 2023

Document

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to 18 U.S.C. § 1350, as adopted pursuant to

§ 906 of the Sarbanes-Oxley Act of 2002

In connection with the filing with the Securities and Exchange Commission of the Report of Cintas Corporation (the “Company”) on Form 10-Q for the period ended November 30, 2022 (the “Report”), I, J. Michael Hansen, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods presented.

/s/ J. Michael Hansen
J. Michael Hansen
(Principal Financial Officer)

January 6, 2023

10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

Commission file number 0-11399

Cintas Corporation

Registrant's Telephone Number, Including Area Code: (513) 459-1200

CINTAS CORPORATION

TABLE OF CONTENTS

Part I. Financial Information

ITEM 1.

FINANCIAL STATEMENTS

CINTAS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

See accompanying notes.

CINTAS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

See accompanying notes.

CINTAS CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS

See accompanying notes.

CINTAS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY

CINTAS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY

See accompanying notes.

CINTAS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

See accompanying notes.

CINTAS CORPORATION

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

ITEM 3.

QUANTITATIVE AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

ITEM 4.

CONTROLS AND PROCEDURES

ITEM 1.

LEGAL PROCEEDINGS

ITEM 2.

UNREGISTERED SALES OF EQUITY

SECURITIES AND USE OF PROCEEDS

ITEM 6.

EXHIBITS