What changed in this filing

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Item 1. Business

2023-07-27 compared with 2022-07-27 · 28 added, 43 removed, 102 unchanged (41% of the section changed)

18 unchanged sentences

Additional information regarding each reportable operating segment and All Other is also included in Note 13 entitled Operating Segment Information of " Notes to Consolidated Financial Statements.

COVID-19 Pandemic

We have operations throughout the U.S.

and Canada and participate in a global supply chain.

Since fiscal 2020, the existence of the novel strain of coronavirus (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, impacted our ability to conduct normal business operations, which had an adverse effect on our business.

Many of Cintas' customers were also impacted by the COVID-19 pandemic, and we saw an impact on some customer's ability to pay timely.

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 increase in inventory resulted in additional inventory reserves during fiscal 2022 and fiscal 2021.

See Note 1 entitled Significant Accounting Policies of " Notes to Consolidated Financial Statements " for additional detail on the incremental reserves placed on inventory.

The on-going roll out of the COVID-19 vaccines and gradual lifting of COVID-19 restrictions had a positive impact on our business during fiscal 2022.

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.

For more information, see the sections entitled “ Management’s Discussion and Analysis of Financial Condition and Results of Operations ,” and “ Risk Factors ” within this Annual Report on Form 10-K.

We provide our products and services to over one million businesses of all types, from small service and manufacturing companies to major corporations that employ thousands of people.

16 unchanged sentences

Cintas' ability to find qualified suppliers who meet its standards and to access products in a timely and efficient manner, is subject to ongoing market risks.

For a discussion of the risks associated with sourcing that may materially impact Cintas, please see " I tem 1A:

For a discussion of the risks associated with sourcing that may materially impact Cintas, please see " Item 1A:

Risk Factors - Risks Relating to Business Strategy and Operations ."

2 unchanged sentences

In addition to Cintas’ U.S.

operations, which in fiscal 2022 generated over 90% of its consolidated revenue, Cintas also operates its business through wholly-owned subsidiaries in foreign jurisdictions, primarily in Canada.

operations, which in fiscal 2023, fiscal 2022 and fiscal 2021, generated over 90% of its consolidated revenue, Cintas also operates its business through wholly-owned subsidiaries in foreign jurisdictions, primarily in Canada.

Compliance with these laws, government regulations, including environmental regulations, and standards requires the dedication of time and effort of employee-partners as well as financial resources.

11 unchanged sentences

We are also subject to the Superfund Amendments and Reauthorization Act of 1986, which imposes certain reporting requirements as to emissions of hazardous substances into the air, land and water.

While environmental compliance is not a material component of our costs, Cintas makes capital expenditures and associated operating costs, primarily for water treatment and waste removal,

on a regular basis in order to comply with environmental laws and regulations, to promote employee-partner safety and to carry out its environmental sustainability principles.

While environmental compliance is not a material component of our costs, Cintas makes capital expenditures and associated operating costs, primarily for water treatment and waste removal, on a regular basis in order to comply with environmental laws and regulations, to promote employee-partner safety and to carry out its environmental sustainability principles.

Environmental spending related to water treatment and waste removal was approximately $26.0 million in fiscal 2023, approximately $22.0 million in fiscal 2022 and approximately $19.0 million in fiscal 2021.

Capital expenditures to limit or monitor hazardous substances totaled approximately $1.0 million in fiscal 2023, approximately $0.2 million in fiscal 2022 and approximately $1.0 million in fiscal 2021.

In addition, health and safety regulations (including laws or regulations promulgated in response to the ongoing COVID-19 pandemic) have necessitated, and may continue to necessitate, increased operating costs or capital investments to promote a safe working environment.

In addition, health and safety regulations (including laws or regulations promulgated in response to the novel strain of coronavirus (COVID-19) pandemic) have necessitated, and may continue to necessitate, increased operating costs or capital investments to promote a safe working environment.

Cintas is also required to comply with increasingly complex and changing laws and regulations enacted to protect business and personal data in the U.S.

and other jurisdictions regarding privacy, data protection and data security, including those related to the collection, storage, use, transmission and protection of personal information and other consumer, customer, vendor or employee data.

With respect to the laws and regulations noted above, as well as other applicable laws and regulations, Cintas’ compliance programs may under certain circumstances involve material investments in the form of additional processes, training, personnel, information technology and capital.

of additional processes, training, personnel, information technology and capital.

In fiscal 2023, compliance with the applicable laws, government regulations, including environmental regulations, and standards did not have a material effect on Cintas’ capital expenditures or consolidated results of operations.

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The SEC maintains an internet site located at www.sec.gov that contains reports, proxy and information statements and other information regarding issuers, such as Cintas, that file electronically with the SEC.

Cintas' SEC filings can be found on the Investors page of its website at www.cintas.com/investors/financials.aspx and its Code of Conduct and Business Ethics can be found on the About Us page of its website at www.cintas.com/company.

These documents are available in print to any shareholder who requests a copy by writing or calling Cintas as set forth on the Investor Information page.

Cintas' SEC filings can be found on the Investor Relations page of its website at www.cintas.com/investors/financial-reports and its Code of Conduct and Business Ethics can be found under the Impact page of its website at www.cintas.com/company/esg.

These documents are available in print to any shareholder who requests a copy by writing or calling Cintas as set forth on the Investor Information page under the FAQs.

The content on any website referred to in this Annual Report on Form 10-K is not incorporated herein by reference unless expressly noted.

Environmental, Social and Governance

Cintas is in the midst of a comprehensive, enterprise-wide review of its business model as it relates to environmental, social and governance (ESG) opportunities, improvements and efficiencies.

In 2021, Cintas announced our ambition to achieve Net Zero greenhouse gas (GHG) emissions by 2050.

In fiscal 2022, Cintas expanded our ESG report to share our focus on making a positive impact through our key ESG priorities.

This included work in areas of climate and energy initiatives, water interactions, materials and waste innovations, sustainable supply chain, diversity, equity and inclusion efforts, employee-partner development, safety and health strategy, human rights and labor rights positions and governance, ethics and integrity foundations.

Cintas' most recent ESG report can be found on our website at www.cintas.com/esg.

In fiscal 2023, Cintas published its third annual environmental, social and governance (ESG) report and reported on Cintas’ continued strategy of a Shared Drive for Better.

The report included information on Cintas’ efforts in areas of climate and energy initiatives, water interactions, materials and waste, sustainable supply chain, diversity, equity and inclusion efforts, employee-partner development, safety and health strategy, human rights and labor rights positions and governance, ethics and integrity foundations.

Cintas' most recent ESG report can be found on our website at www.cintas.com/company/esg.

Human Capital

16 unchanged sentences

Health and Safety

We aspire to achieve zero workplace injuries and provide a safe, open and accountable work environment for our employee-partners.

To enforce internationally recognized standards, we have implemented an occupational health and safety management system in accordance with the Occupational Safety and Health Administration (OSHA).

Employee-partners, contractors, vendors and visitors are all covered by the system, which focuses on hazard prevention, training, management commitment and worker involvement.

We are also committed to continuously improving performance through our Safety Improvement Committees in every operation, while corporate safety and health employee-partners conduct annual reviews of our operations.

Additionally, every year our employee-partners receive online, on-the-job and classroom training on over 30 safety topics, and all maintenance staff must complete the Maintenance Safety Certification.

Every Cintas driver completes monthly driver safety training courses or on-the-road skills evaluations.

Every manager attends OSHA’s 10-hour Safety Improvement course, and each member of our Senior Management team takes the Management and Leadership Skills for Environmental Health and Safety Professionals Course, part of the Harvard T.H Chan School of Public Health safety and health curriculum.

In addition, we provide several channels for all employee-partners to speak up, ask for guidance and report concerns related to ethics or safety violations, and we address those concerns and take appropriate actions to uphold our Cintas values and safety culture.

Through these efforts, Cintas has reduced our recordable injury rate by over 75% since 2008, has been awarded 122 OSHA Star sites in the Voluntary Protection Program (VPP), which is more than double any other company in the U.S.

and have received numerous safety, health and ergonomics awards from national and international groups.

We aspire to achieve zero workplace injuries and collisions and provide a safe, open, healthy and accountable work environment for our employee-partners.

To align with internationally recognized standards, we have implemented an occupational health and safety management system in accordance with the Occupational Safety and Health Administration (OSHA) that is modeled after the International Organization for Standardization (ISO) 45001 and OSHA Voluntary Protection Program (VPP).

Employee-partners, contractors, vendors and visitors are all covered by

the system, which focuses on hazard prevention, training, management commitment and worker involvement.

We are also committed to continuously improving performance through our Health and Safety Improvement Committees in every operation, while corporate health and safety employee-partners conduct annual reviews of our operations.

Additionally, every year our employee-partners receive online, on-the-job and classroom training on over 50 health and safety topics, and all maintenance staff must complete our award-winning Maintenance Safety Certification process.

Every Cintas driver completes monthly driver safety training courses and/or on-the-road skills evaluations.

All production-related managers attend OSHA’s 10-hour Safety Improvement course, and each member of our Senior Management team takes the Management and Leadership Skills for Environmental Health and Safety Professionals Course, part of the Harvard T.H Chan School of Public Health safety and health curriculum.

Through these efforts, Cintas has reduced our recordable injury rate by over 75% since 2008, has been awarded 124 OSHA Star sites in the VPP, which is more than triple any other company in the U.S.

and has received numerous safety, health and ergonomics awards from national and international groups.

Employee-Partner Wellness

We are committed to the health and wellness of our employee-partners.

We are committed to the physical and mental health and wellness of our employee-partners.

We provide our employee-partners and their families with access to a variety of health and wellness programs, including our long-running Live Well program that supports employee-partners on their health and wellness journeys.

We provide free annual biometric screening and health assessments at work or offsite, annual free flu shot clinics onsite or offsite, a tobacco cessation program, weight management programs and an employee-partner assistance program, which offers advice on mental health, legal and financial issues.

In response to the COVID-19 pandemic, we utilized our Preparedness Plan and implemented controls that we consider to be in the best interest of our employee-partners and the communities in which we operate, and which comply with government regulations.

Some of the controls implemented in response to the COVID-19 pandemic, include physical barriers, social distancing, remote-working where possible, travel restrictions, appropriate personal protective equipment and additional hygiene and cleaning regimes.

Keeping people safe remains our top priority, and the diligence and flexibility of our employee-partners in complying with these new controls has allowed us to continue to focus on providing essential products and services to our customers, ranging from cleaning supplies, disinfectant services, hand sanitizer, scrubs, face masks and face shields.

We provide free annual biometric screening and health assessments at work or offsite, annual free flu shot clinics, a tobacco cessation program, weight management programs and an employee-partner assistance program, which offers advice on mental health, legal and financial issues.

Diversity, Equity & Inclusion

1 unchanged sentence

We actively recruit, retain, develop and advance a diverse and talented workforce.

We have five Employee-Partner Business Resource Groups, focused on Women, African Americans, Hispanic and Latin Americans, Asian American / Pacific Islanders and Military and Veteran employee-partners.

We have six Employee-Partner Business Resource Groups, focused on Women, African Americans, Hispanic and Latin Americans, Asian American/Pacific Islanders, LGBTQ+ and Military and Veteran employee-partners.

These groups provide platforms for our employee-partners to showcase skills, experiences and perspectives.

The Employee-Partner Business Resource Groups also help foster inclusion among all employee-partners to build awareness, recruit and retain a diverse workforce and support the overall success of Cintas.

We also have a Management Trainee program that helps Cintas find the best talent for our leadership pipeline, and we monitor representation across management positions.

Cintas’ diversity, equity and inclusion efforts are led by our Chief Diversity Officer.

This position regularly reports to our Chief Executive Officer and works to help achieve our goals and obtain a diverse and talented workforce, which is critical to our success.

We also have a diverse Management Trainee program that helps Cintas find and develop the best talent for our leadership pipeline, and we monitor representation across management positions.

Cintas’ diversity, equity and inclusion efforts are led by our Senior Vice President of Human Resources and Chief Diversity Officer.

This position reports to our Chief Executive Officer and works to help achieve our goals and obtain a diverse and talented workforce, which is critical to our success.

Compensation Programs and Employee Benefits

8 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business