Business Strategy
Cintas helps more than one million businesses of all types and sizes, primarily
in the United States, as well as Canada, Latin America, Europe and Asia, 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 training and compliance courses,
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,
carpet and tile cleaning services, 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 business 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 business 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, especially in our
fire protection operating segment. 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, carpet and tile cleaning services 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. Revenue and income before
income taxes for the three and nine months ended February 29, 2020 and February
28, 2019 for the two reportable operating segments and All Other is presented in
Note 12 entitled Segment Information of "Notes to Consolidated Condensed
Financial Statements."

In December 2019, a novel strain of coronavirus (COVID-19) was reported to have
surfaced in Wuhan, China, and has since spread to a number of other countries,
including the United States. In March 2020, the World Health Organization
characterized COVID-19 as a pandemic. Through the nine months ended February 29,
2020, the COVID-19 pandemic did not have a significant impact on our business.
However, efforts to contain the spread of COVID-19 have intensified. Several
states in the United States, including Ohio, where we are headquartered, have
declared states of emergency, and several countries around the world, including
the United States, have taken steps to restrict travel. A number of countries,
as well as certain states and cities within the United States, have also enacted
temporary closures of businesses, issued quarantine orders and taken other
restrictive measures in
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response to the COVID-19 pandemic. Within the United States, our business has been designated an essential business, which allows us to continue to serve customers that remain open.



We have operations throughout the United States and participate in a global
supply chain, and the existence of the COVID-19 pandemic, the fear associated
with the COVID-19 pandemic and the reactions of governments around the world in
response to the COVID-19 pandemic to regulate the flow of labor and products and
impede the business of our customers began in March 2020 to impact our ability
to conduct normal business operations, which is likely to adversely affect our
business. If we need to close any of our facilities or a critical number of our
employees become too ill to work, our business operations could be materially
adversely affected in a rapid manner. Similarly, if our customers experience
adverse business consequences due to the COVID-19 pandemic, including being
required to shut down their operations, demand for our services and products
could also be materially adversely affected in a rapid manner. The impact of the
COVID-19 pandemic is fluid and continues to evolve, and therefore, we cannot
predict the extent to which our business, results of operations, financial
condition or liquidity will ultimately be impacted.

Consolidated Results
Three Months Ended February 29, 2020 Compared to Three Months Ended February 28,
2019

Total revenue increased 7.6% for the three months ended February 29, 2020, over
the same period in the prior fiscal year, from $1,682.3 million to $1,810.6
million. Revenue also increased organically by 5.7% as a result of increased
sales volume. Organic growth adjusts for the impact of acquisitions, foreign
currency exchange rate fluctuations and workday differences. Total revenue was
positively impacted by 0.2% due to acquisitions, 0.1% due to foreign currency
exchange rate fluctuations and 1.6% due to one more workday in the three months
ended February 29, 2020 compared to the three months ended February 28, 2019.

Uniform Rental and Facility Services reportable operating segment revenue
increased 6.6% for the three months ended February 29, 2020, over the same
period in the prior fiscal year, from $1,358.3 million to $1,448.0 million.
Revenue increased organically by 4.8%. 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. Generally, sales productivity improvements are due to increased
tenure and improved training, which produce a higher number of products and
services sold. Revenue growth was positively impacted by 0.1% due to
acquisitions, 0.1% due to foreign currency exchange rate fluctuations and 1.6%
due to one more workday in the three months ended February 29, 2020, compared to
the three months ended February 28, 2019.

Other revenue, consisting of revenue from the First Aid and Safety Services
reportable operating segment and All Other, increased 11.9% for the three months
ended February 29, 2020, compared to the same period in the prior fiscal year,
from $324.0 million to $362.6 million. Revenue increased organically by 9.6%.
Revenue growth was positively impacted by 0.6% due to growth derived through
acquisitions primarily in our Fire Protection operating segment, which is
included in All Other and our First Aid and Safety Services reportable operating
segment. In addition, revenue growth was positively impacted by 1.7% due to one
more workday in the three months ended February 29, 2020, compared to the three
months ended February 28, 2019.

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 $36.0 million, or 4.8%, for the three
months ended February 29, 2020, compared to the three months ended February 28,
2019. This increase was due to higher Uniform Rental and Facility Services
reportable operating segment sales volume.
Cost of other consists primarily of cost of goods sold (predominantly first aid
and safety products, 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 $23.1 million, or
13.0%, for the three months ended February 29, 2020, compared to the three
months ended February 28, 2019. The increase was primarily due to higher sales
volume in the First Aid and Safety Services reportable operating segment and All
Other.

Selling and administrative expenses increased $33.6 million, but decreased as a
percent of revenue to 28.2% for the three months ended February 29, 2020,
compared to 28.3% for the same period in the prior fiscal year. The decrease as
a percent of revenue was due to efficiencies in labor and employee-partner
related expenses.
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Operating income was $314.7 million for the three months ended February 29,
2020, compared to $278.3 million for the three months ended February 28, 2019.
Operating income was positively impacted by higher sales and lower cost of sales
as a percent to revenue for the three months ended February 29, 2020. Operating
income in the three months ended February 28, 2019 was negatively impacted by
$0.8 million of integration expenses incurred in connection with the G&K
acquisition. The after-tax effect of these integration expenses was a negative
impact of $0.01 per share on diluted earnings per share.

Net interest expense (interest expense less interest income) was $25.6 million
for the three months ended February 29, 2020, compared to $26.7 million for the
three months ended February 28, 2019. The decrease was primarily due to the
decrease in outstanding commercial paper and the associated variable interest
rate.

Cintas' effective tax rate for continuing operations was 18.9% and 20.1% for the
three months ended February 29, 2020 and February 28, 2019, respectively. The
effective tax rate in both periods was impacted by certain discrete items,
primarily the tax accounting for stock-based compensation.

Net income from continuing operations for the three months ended February 29,
2020 increased $33.6 million, or 16.7%, compared to the three months ended
February 28, 2019. Diluted earnings per share from continuing operations was
$2.16 for the three months ended February 29, 2020, which was an increase of
18.0% compared to the same period in the prior fiscal year. Diluted earnings per
share from continuing operations increased due to the increase in earnings from
continuing operations.

Uniform Rental and Facility Services Reportable Operating Segment Three Months Ended February 29, 2020 Compared to Three Months Ended February 28, 2019



Uniform Rental and Facility Services reportable operating segment revenue
increased from $1,358.3 million to $1,448.0 million, or 6.6%, for the three
months ended February 29, 2020, over the same period in the prior fiscal year,
and the cost of uniform rental and facility services increased $36.0 million, or
4.8%. Revenue increased organically by 4.8%. The reportable operating segment's
gross margin was $663.1 million, or 45.8% of revenue. The gross margin was 90
basis points higher than the prior fiscal year's third quarter gross margin of
44.9%. The increase in gross margin as a percent to revenue was driven by the
increase in revenue and continuous improvements in process efficiency.
Selling and administrative expenses increased $22.0 million, but decreased as a
percent of revenue to 27.0%, compared to 27.2% in the third quarter of the prior
fiscal year. The decrease as a percent of revenue was primarily due to
efficiencies in labor and employee-partner related expenses.

Income before income taxes increased $32.5 million, or 13.6%, for the Uniform
Rental and Facility Services reportable operating segment for the three months
ended February 29, 2020, compared to the same period in the prior fiscal
year. Income before income taxes was 18.8% of the reportable operating segment's
revenue, which was a 120 basis point increase compared to the third quarter of
the prior fiscal year of 17.6%. This increase was primarily due to the increase
in sales and gross margin and the elimination of G&K integration expenses.

First Aid and Safety Services Reportable Operating Segment Three Months Ended February 29, 2020 Compared to Three Months Ended February 28, 2019



First Aid and Safety Services reportable operating segment revenue increased
from $149.2 million to $170.5 million, or 14.3%, for the three months ended
February 29, 2020, over the same period in the prior fiscal year. Revenue also
increased organically by 12.5%. Growth was driven by many factors including 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 $11.4 million, or 14.7%, for the
three months ended February 29, 2020, over the three months ended February 28,
2019, due to higher sales volume. The gross margin as a percent of revenue was
48.0% for the quarter ended February 29, 2020, which was a decrease of 20 basis
points compared to the gross margin as a percent of revenue of 48.2% in the same
period of the prior fiscal year. The decrease was driven primarily by a change
in revenue mix due to the growth in lower margin products, such as safety and
personal protective equipment product sales, outpacing growth in higher margin
products.
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Selling and administrative expenses increased $7.0 million, but decreased as a
percent of revenue to 33.6%, compared to 33.7% in the third quarter of the prior
fiscal year. The decrease as a percent of revenue was primarily due to
efficiencies in labor and employee-partner related expenses.

Income before income taxes for the First Aid and Safety Services reportable
operating segment increased $3.1 million to $24.7 million for the three months
ended February 29, 2020, compared to the same period in the prior fiscal year,
due to the previously discussed growth in revenue and improvement in the selling
and administrative expenses as a percentage of revenue. Income before income
taxes was 14.5% of the reportable operating segment's revenue for both the three
months ended February 29, 2020 and February 28, 2019.

Consolidated Results
Nine Months Ended February 29, 2020 Compared to Nine Months Ended February 28,
2019

Total revenue increased 7.2% for the nine months ended February 29, 2020, over
the same period in the prior fiscal year, from $5,098.6 million to $5,465.5
million. Revenue increased organically by 7.1% as a result of increased sales
volume. Organic growth adjusts for the impact of acquisitions and foreign
currency exchange rate fluctuations. Total revenue was positively impacted by
0.1% due to acquisitions.

Uniform Rental and Facility Services reportable operating segment revenue
increased 6.0% for the nine months ended February 29, 2020, over the same period
in the prior fiscal year, from $4,124.0 million to $4,372.5 million. Revenue
also increased organically by 6.0%. 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.
Generally, sales productivity improvements are due to increased tenure and
improved training, which produce a higher number of products and services sold.

Other revenue, consisting of revenue from the First Aid and Safety Services
reportable operating segment and All Other, increased 12.2% for the nine months
ended February 29, 2020, compared to the same period in the prior fiscal year,
from $974.5 million to $1,093.0 million. Revenue increased organically by 11.7%.
Revenue growth was positively impacted by 0.5% due to growth derived through
acquisitions primarily in our Fire Protection operating segment, which is
included in All Other and our First Aid and Safety Services reportable operating
segment.

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 $82.0 million, or 3.6%, for the nine
months ended February 29, 2020, compared to the nine months ended February 28,
2019. This increase was due to higher Uniform Rental and Facility Services
reportable operating segment sales volume.
Cost of other consists primarily of cost of goods sold (predominantly first aid
and safety products, 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 $64.1 million, or
11.9%, for the nine months ended February 29, 2020, compared to the nine months
ended February 28, 2019. The increase was primarily due to higher sales volume
in the First Aid and Safety Services reportable operating segment and All Other.

Selling and administrative expenses increased $98.3 million, or 6.7%, but
decreased as a percent of revenue from 28.9% to 28.7% for the nine months ended
February 29, 2020, compared to the same period in the prior fiscal year. The
decrease as a percent of revenue was due to efficiencies in labor and
employee-partner related expenses.

Operating income was $955.3 million for the nine months ended February 29, 2020,
compared to $819.1 million for the nine months ended February 28, 2019.
Operating income was positively impacted by higher sales and lower cost of sales
as a percent to revenue for the nine months ended February 29, 2020. Operating
income in the nine months ended February 28, 2019 was negatively impacted by
$13.5 million of integration expenses incurred in connection with the G&K
acquisition. The after-tax effect of these integration expenses was a negative
impact of $0.09 per share on diluted earnings per share.

During the nine months ended February 28, 2019, Cintas sold a cost method investment for $73.3 million, resulting in a pre-tax gain of $69.4 million. For the nine months ended February 28, 2019, the after-tax effect of the gain represents a positive impact of $0.47 per share on diluted earnings per share.


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Net interest expense (interest expense less interest income) was $78.6 million
for the nine months ended February 29, 2020, compared to $75.0 million for the
nine months ended February 28, 2019. The increase was primarily due to interest
incurred on commercial paper borrowings and the term loan during the nine months
ended February 29, 2020.

Cintas' effective tax rate for continuing operations was 16.5% and 19.3% for the
nine months ended February 29, 2020 and February 28, 2019, respectively. The
effective tax rate in both periods was impacted by certain discrete items,
primarily the tax accounting for stock-based compensation.

Net income from continuing operations for the nine months ended February 29,
2020, increased $75.3 million, or 11.5%, compared to the nine months ended
February 28, 2019. Diluted earnings per share from continuing operations was
$6.76 for the nine months ended February 29, 2020, which was an increase of
14.4% compared to the same period in the prior fiscal year. Diluted earnings per
share from continuing operations increased due to the increase in earnings from
continuing operations and a decrease in the diluted average shares outstanding.

Uniform Rental and Facility Services Reportable Operating Segment Nine Months Ended February 29, 2020 Compared to Nine Months Ended February 28, 2019



Uniform Rental and Facility Services reportable operating segment revenue
increased from $4,124.0 million to $4,372.5 million, or 6.0%, for the nine
months ended February 29, 2020, over the same period in the prior fiscal year,
and the cost of uniform rental and facility services increased $82.0 million, or
3.6%. Revenue increased organically by 6.0%. The reportable operating segment's
gross margin was $2,034.0 million, or 46.5% of revenue. The gross margin was 120
basis points higher than the prior fiscal year's gross margin of 45.3% for the
nine months ended February 28, 2019. The increase in gross margin as a percent
to revenue was driven by the increase in revenue and continuous improvements in
process efficiency.
Selling and administrative expenses increased $66.5 million, but decreased as a
percent of revenue from 27.7% to 27.6% for the nine months ended February 29,
2020. The decrease was primarily due to lower labor and employee-partner related
expenses, as a percent of revenue.

Income before income taxes increased $113.4 million, or 15.9%, for the Uniform
Rental and Facility Services reportable operating segment for the nine months
ended February 29, 2020, compared to the same period in the prior fiscal
year. Income before income taxes was 18.9% of the reportable operating segment's
revenue, which was a 160 basis point increase compared to 17.3% for the nine
months ended February 28, 2019. This increase was primarily due to the increase
in sales and gross margin and the elimination of G&K integration expenses.

First Aid and Safety Services Reportable Operating Segment Nine Months Ended February 29, 2020 Compared to Nine Months Ended February 28, 2019



First Aid and Safety Services reportable operating segment revenue increased
from $455.9 million to $512.3 million, or 12.4%, for the nine months ended
February 29, 2020, over the same period in the prior fiscal year. Revenue
increased organically by 12.3% as a result of increased sales volume. Revenue
growth was positively impacted by 0.1% due to growth derived through
acquisitions. Growth was driven by many factors including 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 $27.1 million, or 11.5%, for the
nine months ended February 29, 2020, over the nine months ended February 28,
2019, due to higher sales volume. The gross margin as a percent of revenue was
48.5% for the nine months ended February 29, 2020, which was an increase of 50
basis points compared to the gross margin as a percent of revenue of 48.0% in
the same period of the prior fiscal year. The increase was driven primarily by
improved sourcing, leveraging of existing warehouses and optimization of
delivery routes.

Selling and administrative expenses increased $20.1 million, and increased as a
percent of revenue to 34.0%, compared to 33.8% for the nine months ended
February 28, 2019. The increase was primarily due to higher labor and
employee-partner related expenses, particularly medical expense, as a percent of
revenue.

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Income before income taxes for the First Aid and Safety Services reportable
operating segment increased $9.2 million to $74.1 million for the nine months
ended February 29, 2020, compared to the same period in the prior fiscal year,
due to the previously discussed growth in revenue and improvement in the gross
margin percentage. Income before income taxes, at 14.5% of the reportable
operating segment's revenue, was a 30 basis point increase compared to the same
period of the prior fiscal year due to the reasons previously mentioned.

Liquidity and Capital Resources
The following is a summary of our cash flows and cash and cash equivalents as of
and for the nine months ended February 29, 2020 and February 28, 2019:
(In thousands)                                            2020

2019



Net cash provided by operating activities             $  934,549       $

670,717


Net cash used in investing activities                 $ (236,480)      $

(163,014)


Net cash used in financing activities                 $ (560,292)      $

(565,298)

Cash and cash equivalents at the end of the period $ 234,441 $ 80,859





Cash and cash equivalents as of February 29, 2020 and February 28, 2019 include
$25.3 million and $22.7 million, respectively, that is located outside of the
United States.
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.
Net cash provided by operating activities was $934.5 million for the nine months
ended February 29, 2020, an increase of $263.8 million compared to the nine
months ended February 28, 2019. The increase was primarily the result of
increased net income and favorable changes in working capital, specifically
inventories, accounts receivable and accounts payable.
Net cash used in investing activities includes capital expenditures, purchases
of investments, proceeds from the sale of assets and cost method investments and
cash paid for acquisitions of businesses. Capital expenditures were $189.4
million and $207.8 million for the nine months ended February 29, 2020 and
February 28, 2019, respectively. Capital expenditures in fiscal 2020 primarily
relate to expansion efforts in the Uniform Rental and Facility Services
reportable operating segment, representing $151.9 million of the current fiscal
year amount. Cash paid for acquisitions of businesses was $47.9 million and $7.4
million for the nine months ended February 29, 2020 and February 28, 2019,
respectively. The acquisitions during the nine months ended February 29, 2020
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. Also, during
the nine months ended February 29, 2020, the Company received proceeds of $13.3
million from the sale of assets and during the nine months ended February 28,
2019, received proceeds of $73.3 million from the sale of a cost method
investment and $3.2 million from the sale of a business. Net cash used in
investing activities also includes $10.5 million and $17.5 million from
purchases of investments during the nine months ended February 29, 2020 and
February 28, 2019, respectively.
Net cash used in financing activities was $560.3 million and $565.3 million for
the nine months ended February 29, 2020 and February 28, 2019, respectively. On
August 2, 2016, we announced that the Board of Directors authorized a $500.0
million share buyback program, which did not have an expiration date. During the
first half of fiscal 2019, under the August 2, 2016 plan, we purchased a total
of 2.1 million shares of Cintas common stock at an average price of $192.55 for
a total purchase price of $410.0 million, which completed the August 2, 2016
buyback program. On October 30, 2018, we announced that the Board of Directors
authorized a $1.0 billion share buyback program, which does not have an
expiration date. During the nine months ended February 28, 2019, under this
program, we purchased 0.8 million shares of Cintas common stock at an average
price of $170.87 for a total purchase price of $136.6 million. During the nine
months ended February 29, 2020, under the October 30, 2018 program, we purchased
0.8 million shares of Cintas common stock at an average price of $230.66 for a
total purchase price of $193.1 million. Additionally, on October 29, 2019, we
announced that the Board of Directors authorized a new $1.0
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billion share buyback program, which does not have an expiration date. There
have been no share buybacks under this new share buyback program. In the period
subsequent to February 29, 2020, through March 31, 2020, under the October 30,
2018 share buyback program, we purchased 0.8 million shares of Cintas common
stock at an average price of $263.07 per share for a total purchase price of
$202.6 million. From the inception of the October 30, 2018 share buyback plan
through March 31, 2020, Cintas has purchased a total of 4.3 million shares of
Cintas common stock at an average price of $219.40 for a total purchase price of
$939.1 million. In addition, for the nine months ended February 29, 2020, Cintas
acquired 0.3 million shares of Cintas common stock for employee payroll taxes
due on restricted stock awards that vested during the nine months ended
February 29, 2020. These shares were acquired at an average price of $261.48 per
share for a total purchase price of $68.4 million.
During the nine months ended February 29, 2020, Cintas made payments of $112.5
million, net on commercial paper borrowings, and during the nine months ended
February 28, 2019, issued $217.5 million, net, of commercial paper borrowings.

The following table summarizes Cintas' outstanding debt:


                                      Interest            Fiscal Year            Fiscal Year           February 29,           May 31,
(In thousands)                          Rate                 Issued                Maturity                2020                 2019

Debt due within one year
Commercial paper                          2.68  % (1)         2019                   2020             $         -          $   112,500
Term loan                                 2.25  % (2)         2019                   2020                 200,000              200,000
Debt issuance costs                                                                                          (200)                (236)
Total debt due within one year                                                                        $   199,800          $   312,264

Debt due after one year
Senior notes                              4.30  %             2012                   2022             $   250,000          $   250,000
Senior notes                              2.90  %             2017                   2022                 650,000              650,000
Senior notes                              3.25  %             2013                   2023                 300,000              300,000
Senior notes (3)                          2.78  %             2013                   2023                  51,359               51,684
Senior notes (4)                          3.11  %             2015                   2025                  51,721               51,973
Senior notes                              3.70  %             2017                   2027               1,000,000            1,000,000
Senior notes                              6.15  %             2007                   2037                 250,000              250,000

Debt issuance costs                                                                                       (13,924)             (16,150)
  Total debt due after one year                                                                       $ 2,539,156          $ 2,537,507


(1)   Variable rate debt instrument. The rate presented is the variable
borrowing rate at May 31, 2019.
(2)  Variable rate debt instrument. The rate presented is the variable borrowing
rate at February 29, 2020.
(3)  Cintas assumed these senior notes with the acquisition of G&K in the fourth
quarter of fiscal 2017, and they were recorded at fair value. The interest rate
shown above is the effective interest rate. The principal amount of these notes
is $50.0 million with a stated interest rate of 3.73%.
(4)  Cintas assumed these senior notes with the acquisition of G&K in the fourth
quarter of fiscal 2017, and they were recorded at fair value. The interest rate
shown above is the effective interest rate. The principal amount of these notes
is $50.0 million with a stated interest rate of 3.88%.
The credit agreement that supports our commercial paper program was amended and
restated on May 24, 2019. The amendment increased the capacity of the revolving
credit facility from $600.0 million to $1.0 billion and created a new term loan
of $200.0 million. The credit agreement has an accordion feature that provides
Cintas the ability to request increases to the borrowing commitments under
either the revolving credit facility or the term loan of up to $250.0 million in
the aggregate, subject to customary conditions. The maturity date of the
revolving credit facility is May 23, 2024, and the maturity date of the term
loan is May 23, 2020, which can be extended 12 months, annually, for up to four
years. We intend to extend the term loan for 12 months subject to the agreement
of our lenders. As of February 29, 2020, there was no commercial paper
outstanding and no borrowings on our revolving credit facility. As of May 31,
2019, there was $112.5 million of commercial paper outstanding and no borrowings
on our revolving credit facility.

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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. As of February 29, 2020, Cintas was in
compliance with all debt covenants.

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. However, the recent COVID-19
outbreak, which has caused disruption in the capital markets, could make
financing more difficult and/or expensive. 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 degree, on the ratings
assigned by the credit rating agencies to our indebtedness. As of February 29,
2020, our ratings were as follows:
       Rating Agency              Outlook        Commercial Paper       Long-term 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,
obligations under capital leases due in one year, long-term debt and long-term
obligations under capital leases.

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Litigation and Other Contingencies
Cintas is subject to other 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 or results of operation of
Cintas.

                           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, risks inherent with the G&K transaction in the achievement of
cost synergies and the timing thereof, including whether the transaction will be
accretive and within the expected timeframe and the actual amounts of future
integration expenses; the possibility of greater than anticipated operating
costs including energy and fuel costs; lower sales volumes; loss of customers
due to outsourcing trends; the performance and costs of integration of
acquisitions, including G&K; fluctuations in costs of materials and labor
including increased medical costs; costs and possible effects of union
organizing activities; failure to comply with government regulations concerning
employment discrimination, employee pay and benefits and employee health and
safety; the effect on operations of exchange rate fluctuations, tariffs and
other political, economic and regulatory risks; uncertainties regarding any
existing or newly-discovered expenses and liabilities related to environmental
compliance and remediation; the cost, results and ongoing assessment of internal
controls for financial reporting required by the Sarbanes-Oxley Act of 2002; the
effect of new accounting pronouncements; costs of our SAP system implementation;
disruptions caused by the inaccessibility of computer systems data, including
cybersecurity risks; the initiation or outcome of litigation, investigations or
other proceedings; higher assumed sourcing or distribution costs of products;
the disruption of operations from catastrophic or extraordinary events,
including viral 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, 2019 and in our reports on Forms 10-Q and 8-K. The
risks and uncertainties described herein are not the only ones we may face.
Additional risks and uncertainties presently not known to us, or that we
currently believe to be immaterial, may also harm our business.

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