Earnings per Share

9 Months Ended

Feb. 28, 2013

Earnings Per Share [Abstract]

Earnings per Share

Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share using the two-class method for amounts attributable to Cintas’ common shares: 

	Three Months Ended				Nine Months Ended
(In thousands except per share data)	February 28, 2013		February 29, 2012		February 28, 2013		February 29, 2012
Basic Earnings per Share
Net income	$	74,705	$	76,035	$	229,465	$	219,023
Less dividends to:
Common shares	$	—	$	—	$	78,866	$	70,055
Unvested shares	—		—		878		765
Total dividends	$	—	$	—	$	79,744	$	70,820
Undistributed net income	$	74,705	$	76,035	$	149,721	$	148,203
Less: net income allocated to participating unvested securities	517		556		1,048		1,096
Net income available to common shareholders	$	74,188	$	75,479	$	148,673	$	147,107
Basic weighted average common shares outstanding	123,120		129,735		124,483		130,261
Basic earnings per common share:
Common shares - distributed earnings	$	0.00	$	0.00	$	0.64	$	0.54
Common shares - undistributed earnings	0.60		0.58		1.20		1.13
Total common shares	$	0.60	$	0.58	$	1.84	$	1.67
Unvested shares - distributed earnings	$	0.00	$	0.00	$	0.64	$	0.54
Unvested shares - undistributed earnings	0.60		0.58		1.20		1.13
Total unvested shares	$	0.60	$	0.58	$	1.84	$	1.67

	Three Months Ended				Nine Months Ended
(In thousands except per share data)	February 28, 2013		February 29, 2012		February 28, 2013		February 29, 2012
Diluted Earnings per Share
Net income	$	74,705	$	76,035	$	229,465	$	219,023
Less dividends to:
Common shares	$	—	$	—	$	78,866	$	70,055
Unvested shares	—		—		878		765
Total dividends	$	—	$	—	$	79,744	$	70,820
Undistributed net income	$	74,705	$	76,035	$	149,721	$	148,203
Less: net income allocated to participating unvested securities	517		556		1,048		1,096
Net income available to common shareholders	$	74,188	$	75,479	$	148,673	$	147,107
Basic weighted average common shares outstanding	123,120		129,735		124,483		130,261
Effect of dilutive securities – employee stock options	637		210		418		60
Diluted weighted average common shares outstanding	123,757		129,945		124,901		130,321
Diluted earnings per share:
Common shares - distributed earnings	$	0.00	$	0.00	$	0.64	$	0.54
Common shares - undistributed earnings	0.60		0.58		1.19		1.13
Total common shares	$	0.60	$	0.58	$	1.83	$	1.67
Unvested shares - distributed earnings	$	0.00	$	0.00	$	0.64	$	0.54
Unvested shares - undistributed earnings	0.60		0.58		1.19		1.13
Total unvested shares	$	0.60	$	0.58	$	1.83	$	1.67

For the three months ended February 28, 2013 and February 29, 2012, 0.6 million and 1.1 million options granted to purchase shares of Cintas common stock were excluded from the computation of diluted earnings per share, respectively. For the nine months ended February 28, 2013 and February 29, 2012, 0.8 million and 2.1 million options granted to purchase shares of Cintas common stock were excluded from the computation of diluted earnings per share, respectively. The exercise prices of these options were greater than the average market price of the common stock (anti-dilutive).

On October 18, 2011, we announced that the Board of Directors authorized a 500.0 million share buyback program at market prices.  During the first nine months of fiscal 2013, we purchased 4.4 million shares of Cintas common stock for a total purchase price of $179.4 million. From the inception of the October 18, 2011 share buyback program through April 9, 2013, Cintas has purchased a total of 8.0 million shares of Cintas common stock at an average price of $40.05 for a total purchase price of $319.2 million. In addition, for the nine months endedFebruary 28, 2013, Cintas acquired 0.2 million shares of Cintas common stock for employee payroll taxes due on restricted stock awards that vested during the nine months endedFebruary 28, 2013. These shares were acquired at an average price of $37.95 per share for a total purchase price of $7.7 million.