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, 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,
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 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 six
months ended November 30, 2020 and 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 globally. In March 2020, the
World Health Organization characterized COVID-19 as a pandemic. Efforts to
contain the spread of COVID-19 intensified during our fiscal 2020 fourth quarter
and remained in effect throughout the first half of our fiscal 2021. Most states
and municipalities within the U.S. enacted temporary closures of businesses,
issued quarantine orders and took other restrictive measures in response to the
COVID-19 pandemic. Within the U.S., our business has been designated an
essential business, which allows us to continue to serve customers that remain
open.
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We have operations throughout the U.S. and participate in a global supply chain.
During the first half of fiscal 2021, 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, continued to impact
our ability to conduct normal business operations, which had an adverse effect
on our business. If we need to close a significant number 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. In
response to the impact of COVID-19, Cintas put in place health and safety
measures to keep Cintas employees, contractors and customers safe. These health
and safety measures have not materially impacted our ability to service our
customers. Many of Cintas' customers were also impacted by COVID-19 and we did
see an impact on some customer's ability to pay. While there was minimal
disruption to our supply chain, Cintas did increase inventory, primarily
personal protective equipment and facility services inventory, in response to
the customer needs and demand associated with the safety and cleanliness
requirements of COVID-19. The impact of the COVID-19 pandemic is fluid and
continues to evolve, and therefore, we cannot predict the extent to which our
business, consolidated results of operations, consolidated financial condition
or liquidity will ultimately be impacted.

Consolidated Results
Three Months Ended November 30, 2020 Compared to Three Months Ended November 30,
2019

Total revenue decreased 4.7% for the three months ended November 30, 2020, over
the same period in the prior fiscal year, from $1,843.7 million to $1,757.0
million as a result of decreased sales volume from the COVID-19 pandemic
business closures. Total revenue declined organically by 4.4%. Organic growth
adjusts for the impact of acquisitions, divestitures and foreign currency
exchange rate fluctuations. Revenue growth was negatively impacted by a net 0.3%
due to acquisitions and divestitures.

As previously discussed, the government enactment of temporary and indefinite
closures of certain businesses in response to the COVID-19 pandemic continued to
impact our ability to access and service some of our customers impacted by these
mandates during the second quarter of fiscal 2021. Due to the constantly
changing impact of the COVID-19 pandemic, uncertainty remains about the pace of
the economic recovery and about its impact on future Cintas consolidated
financial results. Uniform Rental and Facility Services reportable operating
segment revenue decreased 4.0% for the three months ended November 30, 2020,
over the same period in the prior fiscal year, from $1,470.0 million to $1,410.5
million. Revenue for this reportable operating segment declined organically by
3.6%. In addition to the adverse impact from the COVID-19 pandemic, revenue
growth in the Uniform Rental and Facility Services reportable operating segment
was negatively impacted by a net 0.4% due to acquisitions and divestitures.

Other revenue, consisting of revenue from the First Aid and Safety Services
reportable operating segment and All Other, decreased 7.3% for the three months
ended November 30, 2020, compared to the same period in the prior fiscal year,
from $373.8 million to $346.6 million. Other revenue declined organically by
7.7%. The decline in other revenue growth was partially offset by 0.4% due to
revenue growth derived through acquisitions in our First Aid and Safety Services
reportable operating segment and our Fire Protection operating segment, which is
included in All Other.

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 decreased $45.1 million, or 5.7%, for the three
months ended November 30, 2020, compared to the three months ended November 30,
2019. This decrease was due to lower Uniform Rental and Facility Services
reportable operating segment sales volume, as well as certain cost control
measures such as reduced labor and energy costs that were partially offset by
modest increases in material cost.

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 decreased $9.1 million, or 4.4%, for the three months ended November 30,
2020, compared to the three months ended November 30, 2019. The decrease was
primarily due to lower sales volume. The increase as a percent of revenue was
due to an increase in the proportion of sales from personal protective equipment
in the First Aid and Safety Services reportable operating segment.
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Selling and administrative expenses decreased $50.9 million, to 26.6% as a
percent of revenue for the three months ended November 30, 2020, compared to
28.1% for the same period in the prior fiscal year. The decrease as a percent of
revenue was primarily due to efficiencies in labor and employee-partner related
expenses as well as lower discretionary spending. In addition, during the three
months ended November 30, 2020, there was a one-time benefit from the gain on
the sale of certain operating assets.

Operating income was $352.9 million for the three months ended November 30,
2020, compared to $334.5 million for the three months ended November 30, 2019.
Operating income was positively impacted by lower cost of sales and selling and
administrative expenses as a percent of revenue for the three months ended
November 30, 2020. Operating income also benefited from a one-time gain on the
sale of certain operating assets.

Net interest expense (interest expense less interest income) was $24.3 million
for the three months ended November 30, 2020, compared to $25.9 million for the
three months ended November 30, 2019. The decrease was primarily due to the
decrease in total debt outstanding during the three months ended November 30,
2020, compared to the same period of the prior year.

Cintas' effective tax rate for continuing operations was 13.3% and 20.1% for the
three months ended November 30, 2020 and 2019, respectively. The effective tax
rate in both periods was impacted by certain discrete items, primarily the tax
accounting impact for stock-based compensation. In addition, the effective tax
rate for the three months ended November 30, 2020 included a one-time tax
benefit on the sale of certain operating assets.

Net income from continuing operations for the three months ended November 30,
2020 increased $38.4 million, or 15.6%, compared to the three months ended
November 30, 2019. Diluted earnings per share from continuing operations were
$2.62 for the three months ended November 30, 2020, which was an increase of
15.4% compared to the same period in the prior fiscal year. Diluted earnings per
share from continuing operations increased due to the increase in earnings.

Uniform Rental and Facility Services Reportable Operating Segment Three Months Ended November 30, 2020 Compared to Three Months Ended November 30, 2019



Uniform Rental and Facility Services reportable operating segment revenue
decreased from $1,470.0 million to $1,410.5 million, or 4.0%, for the three
months ended November 30, 2020, over the same period in the prior fiscal year,
and the cost of uniform rental and facility services decreased $45.1 million, or
5.7%. Revenue for the reportable operating segment declined organically by 3.6%.
The reportable operating segment's gross margin was $670.7 million, or 47.5% of
revenue. The gross margin was 90 basis points higher than the prior fiscal
year's second quarter gross margin of 46.6%. The increase in gross margin as a
percent to revenue was driven by certain cost control measures such as reduced
labor and energy costs that were partially offset by modest increases in
material cost.

Selling and administrative expenses for the Uniform Rental and Facility Services
reportable operating segment decreased $43.6 million and decreased as a percent
of revenue to 25.2%, compared to 27.1% in the second 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 as well as lower discretionary
spending and a one-time benefit from the gain on the sale of certain operating
assets.

Income before income taxes increased $29.2 million, or 10.2%, for the Uniform
Rental and Facility Services reportable operating segment for the three months
ended November 30, 2020, compared to the same period in the prior fiscal
year. Income before income taxes was 22.4% of the reportable operating segment's
revenue, which was a 290 basis point increase compared to the second quarter of
the prior fiscal year of 19.5%. This increase was primarily due to the
previously discussed improvement in gross margin and selling and administrative
expenses as a percent of revenue.

First Aid and Safety Services Reportable Operating Segment Three Months Ended November 30, 2020 Compared to Three Months Ended November 30, 2019



First Aid and Safety Services reportable operating segment revenue increased
from $169.7 million to $194.4 million, or 14.6%, for the three months ended
November 30, 2020, over the same period in the prior fiscal year. Revenue for
the reportable operating segment increased organically by 14.5%. First Aid and
Safety Services reportable
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operating segment revenue growth was positively impacted by 0.1% due to
acquisitions. Growth was driven by many factors including new business sold by
sales representatives, penetration of additional products and services into
existing customers and sales of personal protective equipment in response to the
COVID-19 pandemic.

Cost of first aid and safety services increased $23.2 million, or 26.5%, for the
three months ended November 30, 2020, over the three months ended November 30,
2019, due to higher sales volume. The gross margin as a percent of revenue was
43.0% for the quarter ended November 30, 2020 compared to the gross margin as a
percent of revenue of 48.4% in the same period of the prior fiscal year. The
decrease was primarily driven by an increase in the proportion of sales of
personal protective equipment, which typically have lower gross margins than
first aid cabinet sales, as a result of the impact of the COVID-19 pandemic.
Selling and administrative expenses increased $4.7 million, but decreased as a
percent of revenue to 31.9%, compared to 33.9% in the second quarter of the
prior fiscal year. The decrease as a percent of revenue was primarily due to
revenue growing at a faster pace than labor and employee-partner related
expenses and discretionary spending.

Income before income taxes for the First Aid and Safety Services reportable
operating segment decreased $3.1 million to $21.5 million for the three months
ended November 30, 2020, compared to the same period in the prior fiscal
year. Income before income taxes was 11.1% of the reportable operating segment's
revenue compared to the second quarter of the prior fiscal year of 14.5%. This
decrease was primarily due to the previously discussed decrease in gross margin.

Consolidated Results
Six Months Ended November 30, 2020 Compared to Six Months Ended November 30,
2019

Total revenue decreased 4.1% for the six months ended November 30, 2020, over
the same period in the prior fiscal year, from $3,654.9 million to $3,503.6
million as a result of decreased sales volume from the COVID-19 pandemic
business closures. Total revenue declined organically by 4.7%. Organic growth
adjusts for the impact of acquisitions, divestitures, foreign currency exchange
rate fluctuations and workday differences. Total revenue was positively impacted
by 0.8% due to one more workday in the six months ended November 30, 2020,
compared to the six months ended November 30, 2019. Total revenue was negatively
impacted by 0.1% due to foreign currency exchange rate fluctuations and by 0.1%
due to the net impact from acquisitions and divestitures.

As previously discussed, the government enactment of temporary and indefinite
closures of certain businesses in response to the COVID-19 pandemic continued to
impact our ability to access and service some of our customers impacted by these
mandates during the first six months of fiscal 2021. Due to the constantly
changing impact of the COVID-19 pandemic, uncertainty remains about the pace of
the economic recovery and about its impact on future Cintas consolidated
financial results. Uniform Rental and Facility Services reportable operating
segment revenue decreased 4.1% for the six months ended November 30, 2020, over
the same period in the prior fiscal year, from $2,924.5 million to $2,804.9
million. Revenue from this reportable operating segment declined organically by
4.5%. Uniform Rental and Facility Services reportable operating segment revenue
was positively impacted by 0.7% due to one more workday in the six months ended
November 30, 2020, compared to the six months ended November 30, 2019. Revenue
from this reportable operating segment was negatively impacted by 0.1% due to
foreign currency exchange rate fluctuations and a net 0.2% due to acquisitions
and divestitures.

Other revenue, consisting of revenue from the First Aid and Safety Services
reportable operating segment and All Other, decreased 4.3% for the six months
ended November 30, 2020, compared to the same period in the prior fiscal year,
from $730.4 million to $698.7 million. Other revenue declined organically by
5.5%. The decline in organic revenue was partially offset by 0.5% due to revenue
growth derived through acquisitions primarily in our First Aid and Safety
reportable operating segment and our Fire Protection operating segment, which is
included in All Other. Organic growth for other revenue was also positively
impacted by 0.8% due to one more workday in the six months ended November 30,
2020, compared to the six months ended November 30, 2019 and negatively impacted
by 0.1% 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 decreased $98.4 million, or 6.3%, for the six
months ended November 30, 2020, compared to the six months ended November 30,
2019. This decrease was due to lower Uniform Rental and Facility
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Services reportable operating segment sales volume, as well as certain cost control measures, such as reduced labor and energy costs that were partially offset by modest increases in material cost.



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 $2.6 million, or 0.6%, for the six months ended November 30,
2020, compared to the six months ended November 30, 2019. The increase was
primarily due to an increase in the proportion of sales in the First Aid and
Safety Services reportable operating segment of personal protective equipment,
which typically have a lower gross margins compared to the First Aid cabinet
products.

Selling and administrative expenses decreased $117.4 million, or 11.1%, and
decreased as a percent of revenue from 29.0% to 26.9% for the six months ended
November 30, 2020, compared to the same period in the prior fiscal year. The
decrease as a percent of revenue was primarily due to efficiencies in labor and
employee-partner related expenses as well as lower discretionary spending. In
addition, during the six months ended November 30, 2020 there was a one-time
benefit from the gain on the sale of certain operating assets.

Operating income was $702.6 million for the six months ended November 30, 2020,
compared to $640.6 million for the six months ended November 30, 2019. Operating
income was positively impacted by lower cost of sales and selling and
administrative expenses as a percent of revenue for the six months ended
November 30, 2020. Operating income also benefited from a one-time gain on the
sale of certain operating assets.

Net interest expense (interest expense less interest income) was $48.8 million
for the six months ended November 30, 2020, compared to $53.1 million for the
six months ended November 30, 2019. The decrease was primarily due to the
decrease in total debt outstanding during the six months ended November 30,
2020, compared to the same period of the prior year.

Cintas' effective tax rate for continuing operations was 10.5% and 15.4% for the
six months ended November 30, 2020 and 2019, respectively. The effective tax
rate in both periods was impacted by certain discrete items, primarily the tax
accounting for stock-based compensation. In addition, the effective tax rate for
the six months ended November 30, 2020 included a one-time tax benefit on the
sale of certain operating assets.

Net income from continuing operations for the six months ended November 30, 2020
increased $87.6 million, or 17.6%, compared to the six months ended November 30,
2019. Diluted earnings per share from continuing operations was $5.40 for the
six months ended November 30, 2020, which was an increase of 17.4% compared to
the same period in the prior fiscal year. Diluted earnings per share from
continuing operations increased due to the increase in earnings.

Uniform Rental and Facility Services Reportable Operating Segment Six Months Ended November 30, 2020 Compared to Six Months Ended November 30, 2019



Uniform Rental and Facility Services reportable operating segment revenue
decreased from $2,924.5 million to $2,804.9 million, or 4.1%, for the six months
ended November 30, 2020, over the same period in the prior fiscal year, and the
cost of uniform rental and facility services decreased $98.4 million, or 6.3%.
Revenue for this reportable operating segment declined organically by 4.5%. The
reportable operating segment's gross margin was $1,349.7 million, or 48.1% of
revenue. The gross margin was 120 basis points higher than the prior fiscal
year's gross margin of 46.9% for the six months ended November 30, 2019. The
increase in gross margin as a percent of revenue was driven by certain cost
control measures such as reduced labor and energy costs that were partially
offset by modest increases in material cost.
Selling and administrative expenses for the Uniform Rental and Facility Services
reportable operating segment decreased $96.5 million and decreased as a percent
of revenue from 27.9% to 25.6% for the six months ended November 30, 2019. The
decrease as a percent of revenue was primarily due to efficiencies in labor and
employee-partner related expenses, as well as lower discretionary spending and a
one-time benefit from the gain on the sale of certain operating assets.

Income before income taxes increased $75.3 million, or 13.6%, for the Uniform
Rental and Facility Services reportable operating segment for the six months
ended November 30, 2020, compared to the same period in the
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prior fiscal year. Income before income taxes was 22.5% of the reportable
operating segment's revenue, which was a 350 basis point increase compared to
19.0% for the six months ended November 30, 2019. This increase was primarily
due to the previously discussed improvement in gross margin and selling and
administrative expenses as a percent of revenue.

First Aid and Safety Services Reportable Operating Segment Six Months Ended November 30, 2020 Compared to Six Months Ended November 30, 2019



First Aid and Safety Services reportable operating segment revenue increased
from $341.8 million to $398.9 million, or 16.7%, for the six months ended
November 30, 2020, over the same period in the prior fiscal year. Revenue for
this reportable operating segment increased organically by 15.8% as a result of
increased sales volume. First Aid and Safety Services reportable operating
segment revenue growth was positively impacted by 0.9% due to one more workday
in the six months ended November 30, 2020, compared to the six months ended
November 30, 2019. Growth was driven by many factors including new business sold
by sales representatives, penetration of additional products and services into
existing customers and sales of personal protective equipment in response to the
COVID-19 pandemic.

Cost of first aid and safety services increased $57.8 million, or 33.0%, for the
six months ended November 30, 2020, over the six months ended November 30, 2019,
due to higher sales volume. The gross margin as a percent of revenue was 41.5%
for the six months ended November 30, 2020, which was a decrease of 720 basis
points compared to the gross margin as a percent of revenue of 48.7% in the same
period of the prior fiscal year. The decrease was driven primarily by an
increase in the proportion of sales of personal protective equipment, which
typically have lower gross margins than first aid cabinet sales, as a result of
the impact of the COVID-19 pandemic.

Selling and administrative expenses increased $8.7 million, but decreased as a
percent of revenue to 31.5%, compared to 34.2% for the six months ended November
30, 2019. The decrease as a percent of revenue was primarily due to revenue
growing at a faster pace than labor and employee-partner related expenses and
discretionary spending.

Income before income taxes for the First Aid and Safety Services reportable
operating segment decreased $9.4 million to $40.0 million for the six months
ended November 30, 2020, compared to the same period in the prior fiscal
year. Income before income taxes, at 10.0% of the reportable operating segment's
revenue, was a 450 basis point decrease 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 six months ended November 30:
(In thousands)                                           2020

2019



Net cash provided by operating activities             $ 572,964      $

571,351


Net cash used in investing activities                 $ (51,242)     $

(131,673)

Net cash provided by (used in) financing activities $ 34,461 $ (309,992)

Cash and cash equivalents at the end of the period $ 703,175 $ 226,535

Cash and cash equivalents as of November 30, 2020 and 2019 include $37.5 million and $47.9 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.

The disruption from the COVID-19 pandemic continued to have a negative impact on Cintas' fiscal 2021 first half financial results. However, net cash flow provided by operating activities in the first half was not significantly


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impacted. We expect our cash flows from operating activities to remain
sufficient to provide us with adequate levels of short-term liquidity. In
addition, we have access to $1.0 billion of short-term debt from our revolving
credit facility. Although the scope and nature of the impacts of the COVID-19
pandemic remain unclear, we believe our long-term liquidity position remains
strong. In an effort to ensure short-term liquidity, we have taken proactive
measures to maintain financial flexibility within the landscape of the COVID-19
pandemic. We believe the Company has sufficient liquidity to operate in the
current business environment as a result of these actions. Acquisitions and
dividends remain strategic objectives, but they will be dependent on the
economic outlook and liquidity of the Company.

On October 27, 2020, Cintas declared an annual cash dividend of $2.81 per share
on outstanding common stock, representing a 10.2% increase over the annual
dividend paid in the prior year. In addition, on October 27, 2020, the Cintas
Board of Directors approved a change in the dividend policy from an annual
dividend to a quarterly dividend, and subsequently declared a quarterly dividend
of $0.70 per share on outstanding common stock. These dividends, totaling $371.8
million were paid on December 4, 2020, to shareholders of record as of November
6, 2020. 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 operating results and
financial condition, capital requirements, contractual restrictions, business
prospects and other factors that the Board of Directors may deem relevant.

Net cash provided by operating activities was $573.0 million for the six months
ended November 30, 2020, an increase of $1.6 million compared to the six months
ended November 30, 2019. The increase was primarily the result of increased net
income, offset by changes in working capital, primarily inventories, net.

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 $57.7 million and $126.2
million for the six months ended November 30, 2020 and 2019, respectively.
Capital expenditures in fiscal 2021 included $40.6 million for the Uniform
Rental and Facility Services reportable operating segment and $15.6 million for
the First Aid and Safety Services reportable operating segment. Cash paid for
acquisitions of businesses was $6.9 million and $6.6 million for the six months
ended November 30, 2020 and 2019, respectively. The acquisitions during the six
months ended November 30, 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 business, which is included
in All Other. The acquisitions during the six months ended November 30, 2019,
occurred in our First Aid and Safety Services reportable operating segment and
our Fire Protection business, which is included in All Other. Also, during the
six months ended November 30, 2020 and 2019, the Company received proceeds of
$23.4 million and $13.3 million, respectively, from the sale of certain
operating assets, net of cash disposed. Net cash used in investing activities
also includes $7.2 million and $10.1 million of purchases of investments during
the six months ended November 30, 2020 and 2019, respectively.

Net cash provided by financing activities was $34.5 million for the six months
ended November 30, 2020, and net cash used in financing activities was $310.0
million for the six months ended November 30, 2019. The increase in cash
provided by financing activities is due to the decrease in share buyback
activity and debt repayments in six months ended November 30, 2020. 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. On October 29,
2019, we announced the Board of Directors authorized a new $1.0 billion share
buyback program, which does not have an expiration date. The following table
summarizes the buyback activity by program and for the six months ended November
30:
                                                    2020                                                      2019
Buyback Program
(In thousands except per                        Avg. Price           Purchase                             Avg. Price           Purchase
share data)                    Shares           per Share              Price             Shares           per Share             Price

October 30, 2018                  -           $         -          $        -             837           $    230.66          $ 193,109
October 29, 2019                  -           $         -          $        -               -           $         -          $       -
                                  -           $         -          $        -             837           $    230.66          $ 193,109



There were no share buybacks in the period subsequent to November 30, 2020,
through January 8, 2021, under any share buyback program. From the inception of
the October 30, 2018 share buyback program through January 8, 2021, Cintas has
purchased a total of 4.3 million shares of Cintas common stock at an average
price of $219.42 for a total purchase price of $939.1 million. In addition, for
the six months ended November 30, 2020,
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Cintas acquired 0.2 million shares of Cintas common stock for employee payroll
taxes due on restricted stock awards that vested during the six months ended
November 30, 2020. These shares were acquired at an average price of $301.01 per
share for a total purchase price of $71.4 million. For the six months ended
November 30, 2019, Cintas acquired 0.3 million shares of Cintas common stock for
employee payroll taxes dues on restricted stock awards that vested during the
six months ended November 30, 2019. These shares were acquired at an average
price of $260.89 per share for a total purchase price of $65.7 million.

During the six months ended November 30, 2019, Cintas made payments of $112.5
million, net of commercial paper borrowings. Cintas' outstanding debt is
summarized as follows:
                                      Interest            Fiscal Year            Fiscal Year           November 30,            May 31,
(In thousands)                          Rate                 Issued                Maturity                2020                  2020

Debt due within one year
Senior notes                              4.30  %             2012                   2022             $    250,000          $         -

Debt issuance costs                                                                                           (128)                   -
Total debt due within one year                                                                        $    249,872          $         -

Debt due after one year
Senior notes                              4.30  %             2012                   2022             $          -          $   250,000
Senior notes                              2.90  %             2017                   2022                  650,000              650,000
Senior notes                              3.25  %             2013                   2023                  300,000              300,000
Senior notes (1)                          2.78  %             2013                   2023                   51,032               51,250
Senior notes (2)                          3.11  %             2015                   2025                   51,469               51,637
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                                                                                        (11,569)             (13,182)
  Total debt due after one year                                                                       $  2,290,932          $ 2,539,705



(1) 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%.
(2)  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. As of November 30, 2020 and May 31,
2020, there was no commercial paper outstanding and no borrowings on our
revolving credit facility.

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. However, the COVID-19
pandemic, which has caused disruption in the capital markets, could make
financing more difficult and/or expensive. Additionally, our ability to
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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.


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As of November 30, 2020, our ratings were as follows:


       Rating Agency              Outlook        Commercial Paper       Long-term Debt

Standard & Poor's                Negative              A-2                    A-
Moody's Investors Service         Stable               P-2                    A3



Standard and Poor's negative outlook reflects the inherent uncertainty regarding
the spread of COVID-19 and the potential impact to Cintas' operating conditions,
which could result in Cintas being unable to maintain adjusted leverage of less
than two times total debt to EBITDA.

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.

We have assessed the impact of events subsequent to our consolidated condensed
balance sheet date but prior to the issuance of this filing. The impact from the
COVID-19 pandemic, however, continues to evolve, and the scope and nature of the
impacts of the COVID-19 pandemic remain unclear. As such, our conclusions
regarding both our short-term and long-term liquidity position remain unchanged.
Management will continue to evaluate the Company's liquidity position and our
near- and longer-term financial performance as we manage the Company through the
uncertainty related to the COVID-19 pandemic.
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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, 2020,
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 Statement of Income           November 30,
(In thousands)                                            2020

Net sales to unrelated parties                     $       3,301,634
Net sales to non-guarantors                        $           1,642
Operating income                                   $         664,707
Net income                                         $         552,368



Summarized Consolidated Balance Sheets              November 30,        May 31,
(In thousands)                                          2020             2020

ASSETS
Receivables due from non-obligor subsidiaries      $      5,335      $     3,199
Total other current assets                         $  2,922,890      $ 2,143,489
Total other noncurrent assets                      $  4,909,282      $ 4,938,093

LIABILITIES
Amounts due to non-obligor subsidiaries            $      1,267      $     3,437
Current liabilities                                $  1,466,953      $   843,203
Noncurrent liabilities                             $  3,287,295      $ 3,495,956



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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, consolidated results of
operations or consolidated cash flows 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, 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;
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; 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, 2020 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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