Cintas Corporation and Super Micro Computer are slashing their share prices after years of rapid expansion. Stock splits break high-priced stocks into smaller, more manageable pieces. These moves don't change a company's fundamental value, but they can make its equity more liquid and accessible for retail investors who might not have access to purchasing fractional shares. Stock splits can also signal that a business has a lot of recent operational momentum. Let's explore why Super Micro Computer (SMCI -2.1 ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all. That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss. However, the task of finding cutting-edge growth stocks is made easy with the help of the ...

Cintas Corporation (CTAS) is well poised for growth, courtesy of strength across its business, strategic acquisitions, focus on improving the product line and operational excellence. The company remains focused on investing in growth opportunities and solidifying its long-term market position. Image Source: Zacks Investment Research CTAS has a market capitalization of $78.1 billion. Over the past year, it has gained 59.4% compared with the industry's 56.1% growth. CTAS currently carries a Zacks Rank #2 (Buy ...

Three of Wall Street's top-performing stock-split stocks may soon come crashing back to reality. Although artificial intelligence (AI) is currently the hottest thing since sliced bread on Wall Street, the euphoria surrounding stock splits isn't too far behind. A stock split is an event that allows a publicly traded company to alter its share price and outstanding share count by the same magnitude. These changes are purely cosmetic in the sense that stock splits have no impact on a company's market cap or it ...

Investors are getting excited about the changing monetary policy outlook. Fed Chairman Jerome Powell recently signaled that interest rate cuts are likely coming as soon as September. In theory, this could be great news for industrial companies. But we shouldn't lose sight of why the Fed is starting to pivot on its monetary policy. Now Powell is seemingly nervous about a potential slowdown in the labor market while inflation concerns are moving to the back burner. This suggests that economic risks could be s ...

Have you been paying attention to shares of Cintas (CTAS) ? Shares have been on the move with the stock up 8.7% over the past month. The stock hit a new 52-week high of $773.95 in the previous session. Cintas has gained 26.8% since the start of the year compared to the 9% move for the Zacks Industrial Products sector and the 25.7% return for the Zacks Uniform and Related industry. What's Driving the Outperformance? The stock has an impressive record of positive earnings surprises, as it hasn't missed our ea ...

It's possible to beat the index if you pick the right stocks within the index. These three S&P 500 stocks look poised to outperform the index itself. Iron Mountain (NYSE:IRM) offers physical and data storage for numerous corporations, including 90% of Fortune 1,000 Companies. The firm serves more than 240,000 customers and has a history of outperforming the S&P 500. Shares are up by 44% year-to-date, and they have more than tripled over the past five years. Wall Street analysts believe the stock can rally h ...

Group 1: MicroStrategy (MSTR) - MicroStrategy has experienced significant gains, soaring over 156% year-to-date due to the recent Bitcoin rebound, indicating strong potential for further growth if the crypto bull market continues [3][4] - The company is planning a 10-for-1 stock split, which is expected to attract more investor interest and is one of the most-watched stock splits this summer, set to be completed on August 7 [11] - Analysts have mixed views on MSTR stock, with a consensus price target around $2,186, but estimates range from as low as $210 to as high as $2,890 [12] Group 2: White River Bancshares (WRIV) - White River Bancshares operates as the bank holding company for Signature Bank of Arkansas and has faced challenges similar to many regional banks following the recent "mini-banking crisis" [6] - The company reported earnings of $1.85 million, or $1.61 per diluted share, for Q2 2024, driven by successful capital raises and net interest margin expansion, and declared an annual cash dividend of $1.00 per share along with a 2-for-1 stock split [7] - WRIV stock is currently trading around 32% below its 2021 highs, but has shown signs of recovery, climbing 6.4% from its trough this year, indicating potential for future growth [14] Group 3: Cintas Corporation (CTAS) - Cintas reported strong fiscal 2024 fourth-quarter results, with revenue increasing 8.2% to $2.47 billion and diluted earnings per share rising 19.8% to $3.99 [16] - For the full fiscal year, revenue grew 8.9% to $9.60 billion, and EPS rose 16.6% to $15.15, showcasing strong business momentum [16] - Cintas is expected to issue a four-to-one stock split, with shares trading around $761 at the time of writing, reflecting the company's significant appreciation of nearly 200% over the past five years [18]

Part I: Business [Item 1. Business](index=3&type=section&id=Item%201.%20Business) Cintas provides uniforms, facility, first aid, safety, and fire protection services to over one million North American businesses [Overview](index=3&type=section&id=Overview) Cintas Corporation helps over one million businesses get READY™ by providing a wide range of products and services, including uniforms, mats, mops, restroom supplies, first aid, safety products, fire extinguishers, and safety training[61](index=61&type=chunk)[196](index=196&type=chunk)[309](index=309&type=chunk) [Business Segments](index=3&type=section&id=Business%20Segments) Cintas' reportable operating segments are Uniform Rental and Facility Services and First Aid and Safety Services. The 'All Other' category includes Fire Protection Services and Uniform Direct Sale[61](index=61&type=chunk)[281](index=281&type=chunk)[508](index=508&type=chunk) | Segment | 2024 Revenue (thousands) | 2023 Revenue (thousands) | 2022 Revenue (thousands) | | :----------------------------------- | :----------------------- | :----------------------- | :----------------------- | | Uniform Rental and Facility Services | $7,465,199 | $6,897,130 | $6,226,980 | | First Aid and Safety Services | $1,067,334 | $951,496 | $832,458 | | All Other | $1,064,082 | $967,143 | $795,021 | | **Total Revenue** | **$9,596,615** | **$8,815,769** | **$7,854,459** | [Customers](index=3&type=section&id=Customers) Cintas serves over one million businesses, with no single customer accounting for more than one percent of total revenue, ensuring a diverse customer base[62](index=62&type=chunk) [Competition](index=3&type=section&id=Competition) Cintas operates in highly fragmented local markets, competing with national, regional, and local providers, large retailers, online presence companies, and in-house services, based on product, design, price, quality, service, and convenience[63](index=63&type=chunk)[106](index=106&type=chunk) [Operations and Distribution](index=4&type=section&id=Operations%20and%20Distribution) As of May 31, 2024, Cintas operated approximately 11,700 local delivery routes, 467 operational facilities, and 12 distribution centers[43](index=43&type=chunk) [Sourcing](index=4&type=section&id=Sourcing) Cintas sources finished products from numerous third-party suppliers, all of whom must comply with a vendor code of conduct. The company also operates five manufacturing facilities for standard uniform needs[507](index=507&type=chunk) [Government Laws and Regulations](index=4&type=section&id=Government%20Laws%20and%20Regulations) Cintas is subject to various environmental laws and regulations, including the Clean Air Act, Clean Water Act, and Resource Conservation and Recovery Act[44](index=44&type=chunk) Environmental spending for water treatment and waste removal was approximately **$27.0 million** in fiscal 2024, **$26.0 million** in fiscal 2023, and **$22.0 million** in fiscal 2022[44](index=44&type=chunk) Capital expenditures to limit or monitor hazardous substances totaled approximately **$1.7 million** in fiscal 2024, **$1.0 million** in fiscal 2023, and **$0.2 million** in fiscal 2022[44](index=44&type=chunk) [Sustainability](index=5&type=section&id=Sustainability) Cintas published its fourth annual sustainability report in fiscal 2024, detailing efforts in climate and energy, water interactions, materials and waste, sustainable supply chain, diversity, equity and inclusion, employee-partner development, safety and health, human rights, and governance[97](index=97&type=chunk) [Corporate Culture](index=5&type=section&id=Corporate%20Culture) Cintas' culture, based on strong relationships and dedication to customers and employee-partners, is essential to its success and is guided by the Cintas Code of Conduct and Business Ethics[98](index=98&type=chunk) [Human Capital](index=5&type=section&id=Human%20Capital) Cintas' human capital management objectives are to attract, retain, and develop talent, focusing on safety, health, an inclusive culture, diverse talent acquisition, competitive pay/benefits, and leadership development[97](index=97&type=chunk) [Health and Safety](index=6&type=section&id=Health%20and%20Safety) Cintas aims for zero workplace injuries and collisions, implementing an occupational health and safety management system modeled after ISO 45001 and OSHA VPP. These efforts have reduced the recordable injury rate by over **80% since 2008**[100](index=100&type=chunk) - Cintas serves over one million businesses primarily in the U.S., Canada, and Latin America, offering products and services like uniforms, mats, mops, restroom supplies, first aid, safety products, fire extinguishers, and safety training[61](index=61&type=chunk)[196](index=196&type=chunk)[309](index=309&type=chunk) - The company's reportable operating segments are Uniform Rental and Facility Services, and First Aid and Safety Services. The 'All Other' category includes Fire Protection Services and Uniform Direct Sale[61](index=61&type=chunk)[281](index=281&type=chunk)[508](index=508&type=chunk) | Segment | 2024 Revenue (thousands) | 2023 Revenue (thousands) | 2022 Revenue (thousands) | | :----------------------------------- | :----------------------- | :----------------------- | :----------------------- | | Uniform Rental and Facility Services | $7,465,199 | $6,897,130 | $6,226,980 | | First Aid and Safety Services | $1,067,334 | $951,496 | $832,458 | | All Other | $1,064,082 | $967,143 | $795,021 | | **Total Revenue** | **$9,596,615** | **$8,815,769** | **$7,854,459** | - As of May 31, 2024, Cintas employed approximately **46,500 employee-partners** globally, with about **1,000** represented by labor unions. The company focuses on talent development, employee wellness, diversity, equity & inclusion, and competitive compensation/benefits[97](index=97&type=chunk)[70](index=70&type=chunk)[50](index=50&type=chunk) - Cintas has reduced its recordable injury rate by over **80% since 2008** and achieved **128 OSHA Star sites** in the Voluntary Protection Program (VPP)[100](index=100&type=chunk) [Item 1A. Risk Factors](index=7&type=section&id=Item%201A.%20Risk%20Factors) Cintas faces risks from competition, operations, supply chain, cybersecurity, financial factors, and legal/regulatory compliance [Risks Relating to Business Strategy and Operations](index=8&type=section&id=Risks%20Relating%20to%20Business%20Strategy%20and%20Operations) Increased competition could force Cintas to lower prices, negatively impacting consolidated results[106](index=106&type=chunk) The company's ability to expand is dependent on opening new, cost-effective operating facilities, which faces challenges in identifying locations and complying with regulations[107](index=107&type=chunk) Acquisition practices carry risks such as integration difficulties, unforeseen liabilities, and increased acquisition costs due to competition[108](index=108&type=chunk) Supply chain risks, including political/economic instability, supplier financial health, labor issues, raw material availability, and trade policies, could adversely affect operations[76](index=76&type=chunk)[77](index=77&type=chunk) Cybersecurity attacks, including advanced threats and reliance on third-party systems, pose risks of system disruptions, data breaches, and financial losses[78](index=78&type=chunk)[79](index=79&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) Failure to adapt to or effectively manage the risks of artificial intelligence (AI) could negatively impact Cintas' competitiveness and reputation[80](index=80&type=chunk) Maintaining effective internal controls is crucial; failures could lead to unreliable financial reports and negatively impact stock price[81](index=81&type=chunk)[113](index=113&type=chunk) Difficulties in attracting and retaining competent personnel, or a failure to maintain positive labor relationships, could adversely affect consolidated results[82](index=82&type=chunk)[114](index=114&type=chunk) Unexpected events like natural disasters, geopolitical conflicts, or global health pandemics could disrupt business operations and damage brand image[83](index=83&type=chunk)[115](index=115&type=chunk) [Financial Risks](index=10&type=section&id=Financial%20Risks) Cintas' indebtedness may limit cash flow available for investments and increase vulnerability to adverse economic conditions[84](index=84&type=chunk)[116](index=116&type=chunk) Fluctuations in foreign currency exchange rates, particularly the Canadian dollar, could impact consolidated financial condition and results, as foreign revenue represents less than **10%** of total consolidated revenue[86](index=86&type=chunk) Credit market volatility and potential downgrades in credit ratings could adversely affect liquidity and increase borrowing costs[87](index=87&type=chunk)[240](index=240&type=chunk) Impairment charges on goodwill, other intangible assets, or long-lived assets, triggered by macroeconomic or market conditions, could negatively affect consolidated financial condition and results[118](index=118&type=chunk) Unpredictable fuel and energy costs, influenced by geopolitical developments and supply/demand, could adversely affect consolidated financial condition and results[117](index=117&type=chunk) [Legal and Regulatory Risks](index=12&type=section&id=Legal%20and%20Regulatory%20Risks) Failure to comply with complex federal and state regulations, including employment, transportation, ESG, cybersecurity, and data privacy laws, could result in substantial fines or operational restrictions[88](index=88&type=chunk) Environmental laws and regulations could lead to significant costs for remediation, fines, and third-party claims, potentially exceeding current reserves[89](index=89&type=chunk)[120](index=120&type=chunk) Increasing global focus on climate change and ESG matters may result in new regulations, increased compliance costs, and scrutiny, potentially impacting reputation, share price, and investor confidence[90](index=90&type=chunk)[122](index=122&type=chunk)[150](index=150&type=chunk) Changes in income tax rates, tax laws (e.g., Inflation Reduction Act, Pillar Two global minimum tax), or unfavorable resolution of tax audits could increase tax expense and reduce net income[91](index=91&type=chunk)[151](index=151&type=chunk) Cintas is subject to various litigation claims and legal proceedings, which, if decided adversely or settled, could result in material liabilities and expenses[148](index=148&type=chunk) - Increased competition, inability to open new facilities, and risks associated with acquisitions could adversely affect Cintas' consolidated results of operations[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - Cybersecurity attacks, including those leveraging AI, pose significant risks of system disruptions, data breaches, and financial losses, compounded by reliance on third-party IT vendors[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) - Indebtedness may limit cash flow for business needs, and fluctuations in foreign currency exchange rates, credit market volatility, and potential impairment charges could negatively impact financial performance[84](index=84&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) - Failure to comply with federal and state regulations, environmental laws, and increasing ESG-related requirements could result in penalties, significant costs, and reputational harm[88](index=88&type=chunk)[120](index=120&type=chunk)[150](index=150&type=chunk) [Item 1B. Unresolved Staff Comments](index=13&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments from the SEC - There are no unresolved staff comments[92](index=92&type=chunk)[123](index=123&type=chunk) [Item 1C. Cybersecurity](index=14&type=section&id=Item%201C.%20Cybersecurity) Cintas manages cybersecurity risks with a NIST-aligned program, board oversight, continuous investment, and third-party assessments - Cintas' cybersecurity risk management program is integrated into its enterprise risk management, leveraging the NIST framework (identify, protect, detect, respond, recover)[93](index=93&type=chunk) - The Chief Information Security Officer (CISO), with over fifteen years of experience and relevant certifications, is responsible for the cybersecurity program and reports quarterly to the Audit Committee and Board[153](index=153&type=chunk) - Ongoing investments in IT security include end-user training, layered defenses, critical asset protection, enhanced monitoring, and engagement of external experts. Annual risk and cyber maturity assessments are conducted by independent third parties[154](index=154&type=chunk)[125](index=125&type=chunk) - Cintas assesses cybersecurity risks associated with third-party service providers, reviewing their practices and conducting security assessments as part of its vendor management process[94](index=94&type=chunk)[155](index=155&type=chunk) [Item 2. Properties](index=15&type=section&id=Item%202.%20Properties) Cintas operates 479 facilities across 344 cities and maintains a fleet of approximately 21,900 vehicles for its services - Cintas occupies **479 facilities** in **344 cities**, with **248 leased** and the remainder owned. These facilities include rental processing plants, branches, first aid and safety facilities, distribution centers, and manufacturing facilities[157](index=157&type=chunk)[129](index=129&type=chunk) - The company owns or leases approximately **21,900 vehicles** used for route-based services and by sales and management employee-partners[157](index=157&type=chunk) [Item 3. Legal Proceedings](index=16&type=section&id=Item%203.%20Legal%20Proceedings) Material legal proceedings are detailed in Note 15 to the Consolidated Financial Statements - Material legal proceedings are discussed in Note 15 entitled Litigation and Other Contingencies of 'Notes to Consolidated Financial Statements'[160](index=160&type=chunk) [Item 4. Mine Safety Disclosures](index=16&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Cintas Corporation - Item 4. Mine Safety Disclosures is not applicable[161](index=161&type=chunk) Part II: Financial Information [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=17&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Cintas' common stock trades on NASDAQ, with a 4-for-1 split announced, and the company actively manages capital through buybacks and dividends [Market and Shareholder Information](index=17&type=section&id=Market%20and%20Shareholder%20Information) Cintas' common stock is traded on the NASDAQ Global Select Market under the symbol 'CTAS'. As of May 31, 2024, there were approximately **1,300 shareholders of record** and an estimated **700,000 beneficial owners**[132](index=132&type=chunk) A **4-for-1 split** of common stock was announced on May 2, 2024, with shares expected to begin trading on a post-split basis at market open on September 12, 2024[1](index=1&type=chunk)[162](index=162&type=chunk) [Dividends](index=17&type=section&id=Dividends) | Fiscal Year | Total Dividend Per Share | Total Amount (millions) | | :---------- | :----------------------- | :---------------------- | | 2024 | $5.40 | $550.9 | | 2023 | $4.60 | $469.8 | Dividends declared on April 9, 2024, and April 11, 2023, were included in current accrued liabilities on the consolidated balance sheets[134](index=134&type=chunk)[211](index=211&type=chunk) [Stock Performance Graph](index=17&type=section&id=Stock%20Performance%20Graph) The stock performance graph compares the cumulative return on **$100** invested in Cintas' common stock against the S&P 500 Stock Index and a selected peer group (ABM Industries, Aramark, Rollins, Inc., and UniFirst Corporation)[135](index=135&type=chunk)[164](index=164&type=chunk) [Purchases of Equity Securities by the Issuer and Affiliated Purchases](index=18&type=section&id=Purchases%20of%20Equity%20Securities%20by%20the%20Issuer%20and%20Affiliated%20Purchases) Cintas completed its **$1.5 billion** share buyback program (authorized July 27, 2021) during the fourth quarter of fiscal 2024, having purchased **3.6 million shares** at an average price of **$421.77**[138](index=138&type=chunk)[184](index=184&type=chunk)[448](index=448&type=chunk) A new **$1.0 billion** share buyback program was authorized on July 26, 2022. As of May 31, 2024, less than **0.1 million shares** were purchased under this program for **$57.1 million** at an average price of **$673.78**[138](index=138&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk)[449](index=449&type=chunk) Subsequent to May 31, 2024, through July 25, 2024, Cintas purchased an additional **0.7 million shares** for **$473.6 million** under the July 26, 2022 share buyback plan[210](index=210&type=chunk)[449](index=449&type=chunk) The company acquired shares totaling **$10.0 million** in March 2024, **$6.3 million** in April 2024, and **$20.4 million** in May 2024 to satisfy employee-partner payroll taxes on options exercised and restricted stock awards[138](index=138&type=chunk) - Cintas' common stock trades on the NASDAQ Global Select Market under the symbol 'CTAS'. As of May 31, 2024, there were approximately **1,300 shareholders of record** and **700,000 beneficial owners**[132](index=132&type=chunk) - On May 2, 2024, the Company announced a **4-for-1 split** of its common stock, with trading on a post-split basis expected to begin September 12, 2024[1](index=1&type=chunk)[162](index=162&type=chunk) | Fiscal Year | Total Dividend Per Share | Total Amount (millions) | | :---------- | :----------------------- | :---------------------- | | 2024 | $5.40 | $550.9 | | 2023 | $4.60 | $469.8 | - Cintas completed a **$1.5 billion** share buyback program (authorized July 27, 2021) during the fourth quarter of fiscal 2024, purchasing **3.6 million shares** at an average price of **$421.77**[138](index=138&type=chunk)[184](index=184&type=chunk)[448](index=448&type=chunk) - A new **$1.0 billion** share buyback program was authorized on July 26, 2022, with no expiration date. As of May 31, 2024, less than **0.1 million shares** were purchased under this program for **$57.1 million**[138](index=138&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk)[449](index=449&type=chunk) [Item 6. [Reserved]](index=18&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information - Item 6 is reserved[167](index=167&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Cintas achieved strong fiscal 2024 financial performance with revenue and net income growth, robust liquidity, and mitigated inflationary pressures [Business Strategy](index=19&type=section&id=Business%20Strategy) Cintas' principal objective is to maximize long-term shareholder value by exceeding customer expectations[141](index=141&type=chunk) The strategy involves increasing penetration at existing customers, broadening the customer base through geographic expansion and strategic acquisitions, and identifying additional product and service opportunities[141](index=141&type=chunk)[169](index=169&type=chunk)[197](index=197&type=chunk) [Results of Operations](index=19&type=section&id=Results%20of%20Operations) Total revenue for fiscal 2024 increased by **8.9%** to **$9.6 billion**, with organic revenue growth of **8.0%** driven by increased sales volume[199](index=199&type=chunk) Net income for fiscal 2024 was **$1,571.6 million**, a **16.6% increase** compared to fiscal 2023. Diluted earnings per share also increased by **16.6%** to **$15.15**[509](index=509&type=chunk) Income before income taxes increased by **16.6%** to **$1,973.6 million** in fiscal 2024, primarily due to revenue growth and gross margin improvements[174](index=174&type=chunk) Selling and administrative expenses increased to **27.3% of revenue** in fiscal 2024 (from **26.9%** in fiscal 2023), due to investments in selling resources, management trainee programs, talent acquisition, and costs associated with a legal settlement[202](index=202&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) | (In thousands) | 2024 | 2023 | | :----------------------------------- | :---------- | :---------- | | Net cash provided by operating activities | $2,079,781 | $1,597,814 | | Net cash used in investing activities | $(608,631) | $(388,672) | | Net cash used in financing activities | $(1,253,490) | $(1,172,836) | | Cash and cash equivalents at end of year | $342,015 | $124,149 | Net cash provided by operating activities increased by **$482.0 million (30.2%)** in fiscal 2024, driven by higher net income and favorable changes in working capital[207](index=207&type=chunk) Net cash used in investing activities increased to **$608.6 million** in fiscal 2024, including **$409.5 million** in capital expenditures and **$186.8 million** for business acquisitions[183](index=183&type=chunk) Total debt due within one year was **$449.6 million** in fiscal 2024 (vs. **$0** in fiscal 2023), and total debt due after one year was **$2,025.9 million** (vs. **$2,486.4 million** in fiscal 2023)[188](index=188&type=chunk)[337](index=337&type=chunk) Cintas has access to a **$2.0 billion** revolving credit facility, with no commercial paper outstanding or borrowings as of May 31, 2024 and 2023[188](index=188&type=chunk)[368](index=368&type=chunk) [Inflation and Changing Prices](index=27&type=section&id=Inflation%20and%20Changing%20Prices) Cintas experienced inflationary impacts on labor, fuel, and transportation costs in fiscal years 2024, 2023, and 2022. These pressures were mitigated through pricing and efficiency initiatives, preventing a material negative impact on financial condition or results[219](index=219&type=chunk) [Litigation and Other Contingencies](index=27&type=section&id=Litigation%20and%20Other%20Contingencies) An agreement in principle was reached in March 2024 for a class action lawsuit (City of Laurel, Mississippi v. Cintas Corporation No. 2), requiring a one-time payment of **$45.0 million**, which was accrued in accrued liabilities[459](index=459&type=chunk) Management believes that the aggregate liability for ordinary course of business actions will not have a material adverse effect on the consolidated financial position, results of operations, or cash flows[220](index=220&type=chunk) [New Accounting Standards](index=28&type=section&id=New%20Accounting%20Standards) Cintas is currently evaluating the impact of ASU 2023-07 (Segment Reporting, effective fiscal 2025) and ASU 2023-09 (Income Tax Disclosures, effective fiscal 2026) on its consolidated financial statements[221](index=221&type=chunk)[249](index=249&type=chunk)[327](index=327&type=chunk)[356](index=356&type=chunk) [Critical Accounting Policies and Estimates](index=28&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Key critical accounting policies and estimates include revenue recognition, valuation of uniforms and other rental items in service, goodwill impairment, and the insurance reserve[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk)[251](index=251&type=chunk)[254](index=254&type=chunk) The insurance reserve, representing estimated ultimate costs for asserted and unasserted claims, is estimated through complex actuarial procedures with third-party specialists, involving significant judgment[254](index=254&type=chunk)[318](index=318&type=chunk) Goodwill is tested annually for impairment, with no impairment recognized for the fiscal years ended May 31, 2024, 2023, or 2022[224](index=224&type=chunk)[315](index=315&type=chunk) - Total revenue for fiscal 2024 was **$9.6 billion**, an **8.9% increase** over the prior fiscal year, with organic revenue growth of **8.0%**[199](index=199&type=chunk) - Net income for fiscal 2024 increased **16.6%** to **$1,571.6 million**, and diluted earnings per share rose **16.6%** to **$15.15**[509](index=509&type=chunk) - Net cash provided by operating activities increased **30.2%** to **$2,079.8 million** in fiscal 2024, primarily due to higher net income and favorable working capital changes[207](index=207&type=chunk) - Cintas maintains strong liquidity with **$342.0 million** in cash and cash equivalents at year-end fiscal 2024 and access to a **$2.0 billion** revolving credit facility[206](index=206&type=chunk)[182](index=182&type=chunk) - Inflationary pressures on labor, fuel, and transportation costs were experienced but mitigated through pricing and efficiency initiatives, without a material negative impact on financial results[219](index=219&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Cintas faces foreign currency risk from Canadian operations and interest rate risk, with a 50 basis point change impacting income before taxes by $0.6 million - Cintas is exposed to foreign currency risk, primarily from Canadian operations, which account for less than **10%** of consolidated revenue and operating income[225](index=225&type=chunk) - A one-half percent (**50 basis points**) change in short-term interest rates would change Cintas' income before income taxes by approximately **$0.6 million**[255](index=255&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=30&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Cintas' audited consolidated financial statements, management and auditor reports, and detailed notes on accounting policies and financial items [Management's Report on Internal Control over Financial Reporting](index=31&type=section&id=Management%27s%20Report%20on%20Internal%20Control%20over%20Financial%20Reporting) Management concluded that Cintas' internal control over financial reporting was effective as of May 31, 2024, based on criteria established in the COSO Internal Control—Integrated Framework (2013)[232](index=232&type=chunk)[262](index=262&type=chunk) [Reports of Independent Registered Public Accounting Firm](index=32&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young LLP issued an unqualified opinion on Cintas' consolidated financial statements for the period ended May 31, 2024, confirming fair presentation in accordance with U.S. GAAP[293](index=293&type=chunk) The valuation of insurance reserves was identified as a critical audit matter due to its judgmental and complex nature, involving significant estimation uncertainty and the use of a third-party actuarial specialist[237](index=237&type=chunk)[295](index=295&type=chunk) Ernst & Young LLP also expressed an unqualified opinion on the effectiveness of Cintas' internal control over financial reporting as of May 31, 2024, based on the COSO criteria[268](index=268&type=chunk)[298](index=298&type=chunk) [Consolidated Statements of Income](index=35&type=section&id=Consolidated%20Statements%20of%20Income) | (In thousands except per share data) | 2024 | 2023 | 2022 | | :----------------------------------- | :---------- | :---------- | :---------- | | Total revenue | $9,596,615 | $8,815,769 | $7,854,459 | | Operating income | $2,068,633 | $1,802,664 | $1,587,370 | | Income before income taxes | $1,973,635 | $1,693,148 | $1,498,768 | | Net income | $1,571,592 | $1,348,010 | $1,235,757 | | Basic earnings per share | $15.40 | $13.21 | $11.92 | | Diluted earnings per share | $15.15 | $12.99 | $11.65 | | Dividends declared and paid per share | $5.40 | $4.60 | $3.80 | [Consolidated Statements of Comprehensive Income](index=36&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) | (In thousands) | 2024 | 2023 | 2022 | | :------------- | :---------- | :---------- | :---------- | | Net income | $1,571,592 | $1,348,010 | $1,235,757 | | Other comprehensive income (loss), net of tax | $13,423 | $(30,139) | $77,029 | | Comprehensive income | $1,585,015 | $1,317,871 | $1,312,786 | [Consolidated Balance Sheets](index=37&type=section&id=Consolidated%20Balance%20Sheets) | (In thousands) | As of May 31, 2024 | As of May 31, 2023 | | :------------- | :----------------- | :----------------- | | Total current assets | $3,185,207 | $2,930,000 | | Total assets | $9,168,817 | $8,540,000 | | Total current liabilities | $1,828,519 | $1,230,000 | | Total long-term liabilities | $3,023,926 | $3,450,000 | | Total shareholders' equity | $4,316,372 | $3,860,000 | [Consolidated Statements of Shareholders' Equity](index=38&type=section&id=Consolidated%20Statements%20of%20Shareholders%27%20Equity) Total shareholders' equity increased to **$4,316,372 thousand** at May 31, 2024, from **$3,863,986 thousand** at May 31, 2023, driven by net income and stock-based compensation, partially offset by dividends and share repurchases[306](index=306&type=chunk) [Consolidated Statements of Cash Flows](index=39&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) | (In thousands) | 2024 | 2023 | 2022 | | :------------- | :---------- | :---------- | :---------- | | Net cash provided by operating activities | $2,079,781 | $1,597,814 | $1,537,625 | | Net cash used in investing activities | $(608,631) | $(388,672) | $(402,635) | | Net cash used in financing activities | $(1,253,490) | $(1,172,836) | $(1,537,943) | | Cash and cash equivalents at end of year | $342,015 | $124,149 | $90,471 | [Notes to Consolidated Financial Statements](index=40&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [Note 1. Significant Accounting Policies](index=40&type=section&id=Note%201.%20Significant%20Accounting%20Policies) Approximately **95%** of Cintas' revenue is derived from route servicing, recognized over time as services are performed. The remaining **5%** from Uniform Direct Sales is recognized when goods are transferred[311](index=311&type=chunk)[252](index=252&type=chunk) Inventories are valued at the lower of cost (FIFO) or net realizable value, with reserves for obsolete inventory of **$63.1 million** in FY2024 and **$80.1 million** in FY2023[286](index=286&type=chunk)[342](index=342&type=chunk) Uniforms and other rental items in service are amortized using the straight-line method over useful lives ranging from **8 to 60 months**, based on industry and company-specific experience[314](index=314&type=chunk)[223](index=223&type=chunk) The insurance reserve, representing estimated ultimate costs for claims, was **$176.8 million** in FY2024 and **$155.0 million** in FY2023, estimated through actuarial procedures with third-party specialists[318](index=318&type=chunk)[254](index=254&type=chunk) No goodwill impairment was recognized for the fiscal years ended May 31, 2024, 2023, or 2022[315](index=315&type=chunk)[224](index=224&type=chunk) [Note 2. Revenue Recognition](index=46&type=section&id=Note%202.%20Revenue%20Recognition) | Segment | 2024 Revenue (thousands) | 2023 Revenue (thousands) | 2022 Revenue (thousands) | | :----------------------------------- | :----------------------- | :----------------------- | :----------------------- | | Uniform Rental and Facility Services | $7,465,199 | $6,897,130 | $6,226,980 | | First Aid and Safety Services | $1,067,334 | $951,496 | $832,458 | | Fire Protection Services | $728,610 | $627,747 | $527,517 | | Uniform Direct Sales | $335,472 | $339,396 | $267,504 | | **Total Revenue** | **$9,596,615** | **$8,815,769** | **$7,854,459** | Capitalized commission expenses for obtaining route servicing contracts totaled **$94.6 million** (current) and **$262.5 million** (noncurrent) as of May 31, 2024. Amortization expense for these commissions was **$101.4 million** in fiscal 2024[359](index=359&type=chunk) [Note 3. Fair Value Disclosures](index=47&type=section&id=Note%203.%20Fair%20Value%20Disclosures) | (In thousands) | Level 1 (2024) | Level 2 (2024) | Total (2024) | Level 1 (2023) | Level 2 (2023) | Total (2023) | | :----------------------------------- | :------------- | :------------- | :----------- | :------------- | :------------- | :----------- | | Cash and cash equivalents | $342,015 | — | $342,015 | $124,149 | — | $124,149 | | Interest rate lock agreements | — | $94,829 | $94,829 | — | $70,449 | $70,449 | | **Total assets at fair value** | **$342,015** | **$94,829** | **$436,844** | **$124,149** | **$70,449** | **$194,598** | Fair values of interest rate lock agreements are based on similar exchange-traded derivatives (market approach) and classified within Level 2 of the fair value hierarchy[360](index=360&type=chunk) [Note 4. Property and Equipment](index=47&type=section&id=Note%204.%20Property%20and%20Equipment) | (In thousands) | 2024 | 2023 | | :----------------------------------- | :---------- | :---------- | | Land | $194,661 | $190,707 | | Buildings and improvements | $744,617 | $714,376 | | Equipment | $2,963,860 | $2,699,728 | | Leasehold improvements | $46,490 | $44,897 | | Construction in progress | $166,616 | $109,037 | | Accumulated depreciation | $(2,582,076) | $(2,362,269) | | **Property and equipment, net** | **$1,534,168** | **$1,396,476** | Internal use software included in equipment was **$335.5 million** in FY2024 and **$308.5 million** in FY2023. Amortization expense for internal use software was **$26.6 million** in FY2024[362](index=362&type=chunk)[387](index=387&type=chunk) [Note 5. Goodwill, Service Contracts and Other Assets](index=48&type=section&id=Note%205.%20Goodwill%2C%20Service%20Contracts%20and%20Other%20Assets) Goodwill increased to **$3,212,424 thousand** at May 31, 2024, from **$3,056,201 thousand** at May 31, 2023, primarily due to goodwill acquired from business acquisitions[388](index=388&type=chunk) Service contracts, net, were **$321,902 thousand** at May 31, 2024, compared to **$346,574 thousand** at May 31, 2023[335](index=335&type=chunk) Estimated future amortization expense for service contracts and other assets is **$690,298 thousand**, with **$153,196 thousand** expected in fiscal year 2025[390](index=390&type=chunk) [Note 6. Debt, Derivatives and Hedging Activities](index=49&type=section&id=Note%206.%20Debt%2C%20Derivatives%20and%20Hedging%20Activities) | (In thousands) | 2024 | 2023 | | :----------------------------------- | :---------- | :---------- | | Total debt due within one year | $449,595 | $0 | | Total debt due after one year | $2,025,934 | $2,486,405 | | **Total Debt** | **$2,475,529** | **$2,486,405** | The average interest rate for all Cintas debt at May 31, 2024, was **4.0%**, with maturity dates extending through fiscal year 2037[366](index=366&type=chunk) Cintas repurchased **$13.5 million** of its **6.15%** senior notes in fiscal 2024, resulting in a **$0.9 million** loss recorded in interest expense[392](index=392&type=chunk) A **$2.0 billion** revolving credit facility supports the commercial paper program, with no outstanding commercial paper or borrowings as of May 31, 2024, and 2023[368](index=368&type=chunk) Interest paid was **$100.8 million** in fiscal 2024, compared to **$111.5 million** in fiscal 2023[393](index=393&type=chunk) [Note 7. Leases](index=50&type=section&id=Note%207.%20Leases) Operating lease right-of-use assets, net, were **$187,953 thousand** at May 31, 2024, and operating lease liabilities were **$146,824 thousand** (long-term) and **$45,727 thousand** (current)[305](index=305&type=chunk) The weighted-average remaining lease term for operating leases was **5.15 years** in fiscal 2024, with a weighted-average discount rate of **3.48%**[373](index=373&type=chunk) Operating lease costs, including short-term and variable lease expenses, totaled **$83.2 million** in fiscal 2024, an increase from **$79.8 million** in fiscal 2023[398](index=398&type=chunk) [Note 8. Income Taxes](index=51&type=section&id=Note%208.%20Income%20Taxes) Income before income taxes from U.S. operations was **$1,860.9 million** and from foreign operations was **$112.8 million** in fiscal 2024[374](index=374&type=chunk) | (In thousands) | 2024 | 2023 | 2022 | | :----------------------------------- | :---------- | :---------- | :---------- | | Current income tax expense | $432,543 | $318,207 | $211,376 | | Deferred income tax expense (benefit) | $(30,500) | $26,931 | $51,635 | | **Total income tax expense** | **$402,043** | **$345,138** | **$263,011** | Income taxes paid were **$423.1 million** in fiscal 2024, a significant increase from **$291.9 million** in fiscal 2023[377](index=377&type=chunk) The net deferred tax liability was **$475.5 million** at May 31, 2024, compared to **$498.4 million** at May 31, 2023[401](index=401&type=chunk) Total unrecognized tax benefits were **$32.7 million** at May 31, 2024, with **$2.8 million** accrued for interest and penalties[403](index=403&type=chunk) [Note 9. Acquisitions](index=54&type=section&id=Note%209.%20Acquisitions) In fiscal 2024, Cintas acquired **7 businesses** in Uniform Rental and Facility Services, **1** in First Aid and Safety Services, and **8** in All Other[406](index=406&type=chunk) Total cash consideration for acquisitions, net of cash acquired, was **$186.8 million** in fiscal 2024, significantly higher than **$46.4 million** in fiscal 2023[433](index=433&type=chunk) Goodwill recognized from acquisitions in fiscal 2024 was **$157.2 million**, representing estimated future economic benefits not individually identifiable[407](index=407&type=chunk)[433](index=433&type=chunk) [Note 10. Employee Benefit Plans](index=54&type=section&id=Note%2010.%20Employee%20Benefit%20Plans) The net pension liability for the assumed G&K Pension Plan was **$16.0 million** at May 31, 2024, a decrease from **$17.7 million** at May 31, 2023[383](index=383&type=chunk) Total contributions to the Partners' Plan (profit sharing, ESOP, and 401(k)) were **$115.1 million** in fiscal 2024, up from **$99.1 million** in fiscal 2023[418](index=418&type=chunk) Matching contributions to the Supplemental Executive Retirement Plan (SERP) were **$13.1 million** in fiscal 2024, an increase from **$12.3 million** in fiscal 2023[446](index=446&type=chunk) [Note 11. Earnings per Share](index=58&type=section&id=Note%2011.%20Earnings%20per%20Share) | (In thousands except per share data) | 2024 | 2023 | 2022 | | :----------------------------------- | :---------- | :---------- | :---------- | | Basic earnings per share | $15.40 | $13.21 | $11.92 | | Diluted earnings per share | $15.15 | $12.99 | $11.65 | | (In thousands except per share data) | 2024 | 2023 | 2022 | | :----------------------------------- | :---------- | :---------- | :---------- | | Proforma basic earnings per share | $3.85 | $3.30 | $2.98 | | Proforma diluted earnings per share | $3.79 | $3.25 | $2.91 | Options to purchase **0.4 million**, **1.0 million**, and **0.5 million shares** were excluded from diluted EPS computation in fiscal 2024, 2023, and 2022, respectively, as their exercise prices were anti-dilutive[421](index=421&type=chunk) [Note 12. Stock-Based Compensation](index=60&type=section&id=Note%2012.%20Stock-Based%20Compensation) Total compensation cost for stock-based awards was **$117.0 million** in fiscal 2024, an increase from **$103.6 million** in fiscal 2023[425](index=425&type=chunk) The remaining unrecognized compensation cost related to unvested stock options and restricted stock at May 31, 2024, was **$310.4 million**, to be recognized over a weighted-average period of **2.2 years**[6](index=6&type=chunk) At May 31, 2024, **3,812,258 stock options** were outstanding with a weighted average exercise price of **$342.91**. The aggregate intrinsic value of outstanding options was **$1,278.4 million**[427](index=427&type=chunk)[478](index=478&type=chunk) The weighted-average fair value of stock options granted was **$191.15** in fiscal 2024, **$136.64** in fiscal 2023, and **$100.07** in fiscal 2022[476](index=476&type=chunk) [Note 13. Accumulated Other Comprehensive Income (Loss)](index=63&type=section&id=Note%2013.%20Accumulated%20Other%20Comprehensive%20Income%20%28Loss%29) The balance of accumulated other comprehensive income at May 31, 2024, was **$91,201 thousand**, an increase from **$77,778 thousand** at May 31, 2023[7](index=7&type=chunk) Net current period other comprehensive income was **$13,423 thousand** in fiscal 2024, a significant improvement from a loss of **$30,139 thousand** in fiscal 2023[7](index=7&type=chunk) [Note 14. Operating Segment Information](index=64&type=section&id=Note%2014.%20Operating%20Segment%20Information) | (In thousands) | Uniform Rental and Facility Services (2024) | First Aid and Safety Services (2024) | All Other (2024) | Corporate (2024) | Total (2024) | | :----------------------------------- | :------------------------------------------ | :----------------------------------- | :--------------- | :--------------- | :----------- | | Revenue | $7,465,199 | $1,067,334 | $1,064,082 | — | $9,596,615 | | Gross margin | $3,600,128 | $592,656 | $493,632 | — | $4,686,416 | | Operating income | $1,659,501 | $239,153 | $169,979 | — | $2,068,633 | | Total assets | $7,503,043 | $730,003 | $593,756 | $342,015 | $9,168,817 | The Uniform Rental and Facility Services segment generated **$7,465.2 million** in revenue and **$1,659.5 million** in operating income in fiscal 2024[9](index=9&type=chunk) The First Aid and Safety Services segment reported **$1,067.3 million** in revenue and **$239.2 million** in operating income for fiscal 2024[9](index=9&type=chunk) [Note 15. Litigation and Other Contingencies](index=65&type=section&id=Note%2015.%20Litigation%20and%20Other%20Contingencies) An agreement in principle was reached in November 2023 for a class action lawsuit alleging ERISA violations, requiring an immaterial payment covered by insurance[11](index=11&type=chunk) A tentative settlement was reached in March 2024 for a contract dispute class action lawsuit, requiring a one-time payment of **$45.0 million**, which has been accrued[459](index=459&type=chunk) - Management concluded that Cintas' internal control over financial reporting was effective as of May 31, 2024, based on the COSO framework[232](index=232&type=chunk)[262](index=262&type=chunk) - Ernst & Young LLP issued an unqualified opinion on the consolidated financial statements and on the effectiveness of internal control over financial reporting as of May 31, 2024[264](index=264&type=chunk)[268](index=268&type=chunk)[293](index=293&type=chunk)[298](index=298&type=chunk) | (In thousands except per share data) | 2024 | 2023 | 2022 | | :----------------------------------- | :---------- | :---------- | :---------- | | Total revenue | $9,596,615 | $8,815,769 | $7,854,459 | | Operating income | $2,068,633 | $1,802,664 | $1,587,370 | | Income before income taxes | $1,973,635 | $1,693,148 | $1,498,768 | | Net income | $1,571,592 | $1,348,010 | $1,235,757 | | Basic earnings per share | $15.40 | $13.21 | $11.92 | | Diluted earnings per share | $15.15 | $12.99 | $11.65 | | Dividends declared and paid per share | $5.40 | $4.60 | $3.80 | | (In thousands) | As of May 31, 2024 | As of May 31, 2023 | | :------------- | :----------------- | :----------------- | | Total current assets | $3,185,207 | $2,930,000 | | Total assets | $9,168,817 | $8,540,000 | | Total current liabilities | $1,828,519 | $1,230,000 | | Total long-term liabilities | $3,023,926 | $3,450,000 | | Total shareholders' equity | $4,316,372 | $3,860,000 | | (In thousands) | 2024 | 2023 | 2022 | | :------------- | :---------- | :---------- | :---------- | | Net cash provided by operating activities | $2,079,781 | $1,597,814 | $1,537,625 | | Net cash used in investing activities | $(608,631) | $(388,672) | $(402,635) | | Net cash used in financing activities | $(1,253,490) | $(1,172,836) | $(1,537,943) | | Cash and cash equivalents at end of year | $342,015 | $124,149 | $90,471 | [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=66&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There were no changes in or disagreements with accountants on accounting and financial disclosure - There were no changes in or disagreements with accountants on accounting and financial disclosure[12](index=12&type=chunk)[460](index=460&type=chunk) [Item 9A. Controls and Procedures](index=66&type=section&id=Item%209A.%20Controls%20and%20Procedures) Cintas' disclosure controls and procedures were effective as of May 31, 2024, with no material changes in internal control - Cintas' management concluded that its disclosure controls and procedures were effective as of May 31, 2024, ensuring information required by the Exchange Act is recorded, processed, summarized, and reported timely[13](index=13&type=chunk) - There were no changes in Cintas' internal control over financial reporting during the fiscal quarter ended May 31, 2024, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[14](index=14&type=chunk) [Item 9B. Other Information](index=66&type=section&id=Item%209B.%20Other%20Information) This item contains no other information - No other information is reported under this item[12](index=12&type=chunk)[488](index=488&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=66&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item contains no disclosure regarding foreign jurisdictions that prevent inspections - No disclosure regarding foreign jurisdictions that prevent inspections is provided[15](index=15&type=chunk)[463](index=463&type=chunk) Part III: Directors, Executive Officers and Corporate Governance [Item 10. Directors, Executive Officers and Corporate Governance](index=67&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement - Information required under this item is incorporated by reference to the material contained in Cintas' definitive proxy statement for the 2024 annual meeting of shareholders[464](index=464&type=chunk)[489](index=489&type=chunk) [Item 11. Executive Compensation](index=67&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information is incorporated by reference from the Proxy Statement, including equity compensation plan details - Information required under this item is incorporated by reference to the material contained in the Proxy Statement, except for Item 201(d) of Regulation S-K[16](index=16&type=chunk)[464](index=464&type=chunk) | Plan category | Number of shares to be issued upon exercise of outstanding options | Weighted average exercise price of outstanding options | Number of shares remaining available for future issuance under equity compensation plans | | :----------------------------------- | :------------------------------------------------- | :----------------------------------------------------- | :--------------------------------------------------------------------------------------- | | Equity compensation plans approved by shareholders | 3,812,258 | $342.91 | 4,982,123 | | Equity compensation plans not approved by shareholders | — | — | — | | **Total** | **3,812,258** | **$342.91** | **4,982,123** | [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=67&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership and related stockholder matters are incorporated by reference from the Proxy Statement - Information required under this item is incorporated by reference to the material contained in the Proxy Statement[465](index=465&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=67&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related transactions and director independence is incorporated by reference from the Proxy Statement - Information required under this item is incorporated by reference to the material contained in the Proxy Statement[465](index=465&type=chunk) [Item 14. Principal Accountant Fees and Services](index=67&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the Proxy Statement - Information required under this item is incorporated by reference to the material contained in the Proxy Statement[505](index=505&type=chunk) Part IV: Exhibits, Financial Statement Schedules [Item 15. Exhibits and Financial Statement Schedules](index=68&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Annual Report on Form 10-K - All financial statements required by Item 8 of Form 10-K are included in this Annual Report. Schedule II: Valuation and Qualifying Accounts and Reserves is filed for the three years ended May 31, 2024[19](index=19&type=chunk) - Exhibits include restated articles of incorporation, amended by-laws, various indenture agreements, forms of senior notes, credit agreements, and numerous management compensatory contracts and plans[20](index=20&type=chunk)[494](index=494&type=chunk)[495](index=495&type=chunk) - Certifications of the Principal Executive Officer and Principal Financial Officer, pursuant to Rule 13a-14(a) of the Exchange Act and 18 U.S.C. § 1350, are included[20](index=20&type=chunk)[468](index=468&type=chunk) [Item 16. Form 10-K Summary](index=70&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item indicates that no Form 10-K summary is provided - No Form 10-K Summary is provided[470](index=470&type=chunk) [Signatures](index=71&type=section&id=Signatures) The report is signed by Cintas Corporation's President and CEO, Todd M. Schneider, and other officers on July 25, 2024 - The report was signed on behalf of Cintas Corporation by Todd M. Schneider, President and Chief Executive Officer, and other directors and officers on July 25, 2024[26](index=26&type=chunk)[471](index=471&type=chunk)[472](index=472&type=chunk)[498](index=498&type=chunk)[499](index=499&type=chunk) [Schedule II — Valuation and Qualifying Accounts and Reserves](index=72&type=section&id=Schedule%20II%20%E2%80%94%20Valuation%20and%20Qualifying%20Accounts%20and%20Reserves) Schedule II summarizes changes in the Allowance for Credit Losses for fiscal years ended May 31, 2024, 2023, and 2022 | (In thousands) | Balance at Beginning of Year | Additions Deductions | Balance at End of Year | | :----------------------------------- | :--------------------------- | :------------------- | :--------------------- | | May 31, 2022 | $12,097 | $30,278 | $12,918 | | May 31, 2023 | $12,918 | $40,817 | $14,926 | | May 31, 2024 | $14,926 | $53,240 | $17,914 | - The Allowance for Credit Losses increased to **$17,914 thousand** at May 31, 2024, from **$14,926 thousand** at May 31, 2023[500](index=500&type=chunk)

Markets were on a rally in the first half of this year after a solid 2023. However, volatility has returned to Wall Street and all three major indexes have retreated from their record highs in the past two weeks. Tech stocks, which drove the rally in the first half, have been particularly taking a hit. On Jul 24, all three major stock indexes dropped significantly, with the S&P 500 and Nasdaq experiencing their biggest declines since 2022. The S&P 500 slid 2.31%, closing at 5,427.13 points, while the Nasdaq ...