Goodwill, Service Contracts and Other Assets, Net

3 Months Ended

Aug. 31, 2025

Goodwill, Service Contracts And Other Assets [Abstract]

Goodwill, Service Contracts and Other Assets, Net

Changes in the carrying amount of goodwill and service contracts by reportable operating segment and All Other for the three months ended August 31, 2025, are as follows:


Goodwill (In thousands)	Uniform Rental and Facility Services		First Aid and Safety Services		All Other		Total

Balance as of June 1, 2025	$	2,913,991	$	298,145	$	188,091	$	3,400,227
Goodwill acquired	1,667		2,459		6,446		10,572
Foreign currency translation	(64)		(6)		—		(70)
Balance as of August 31, 2025	$	2,915,594	$	300,598	$	194,537	$	3,410,729


Service Contracts (In thousands)	Uniform Rental and Facility Services		First Aid and Safety Services		All Other		Total

Balance as of June 1, 2025	$	273,847	$	14,138	$	21,843	$	309,828
Service contracts acquired	282		1,313		949		2,544
Service contracts amortization	(12,156)		(1,118)		(1,021)		(14,295)
Foreign currency translation	(50)		(2)		—		(52)
Balance as of August 31, 2025	$	261,923	$	14,331	$	21,771	$	298,025

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


	As of August 31, 2025						As of May 31, 2025
(In thousands)	Carrying Amount		Accumulated Amortization		Net		Carrying Amount		Accumulated Amortization		Net

Service contracts	$	1,080,820	$	782,795	$	298,025	$	1,078,305	$	768,477	$	309,828

Capitalized contract costs (1)	$	930,639	$	647,531	$	283,108	$	896,632	$	621,351	$	275,281
Noncompete and consulting agreements and other	255,731		76,420		179,311		262,610		75,249		187,361

Other assets	$	1,186,370	$	723,951	$	462,419	$	1,159,242	$	696,600	$	462,642

(1) The current portion of capitalized contract costs, included in prepaid expenses and other current assets on the consolidated condensed balance sheets as of both August 31, 2025 and May 31, 2025, is $96.5 million.

Amortization expense for service contracts and other assets was $42.2 million and $40.7 million for the three months ended August 31, 2025 and 2024, respectively. These expenses are recorded in selling and administrative expenses on the consolidated condensed statements of income. As of August 31, 2025, 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)

2026 (remaining nine months)	$	117,671
2027	136,681
2028	108,662
2029	91,760
2030	75,521
Thereafter	158,754
Total future amortization expense	$	689,049

CINTAS CORP 10-Q