Earnings Per Share

3 Months Ended

Aug. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share 

Cintas uses the two-class method to calculate basic and diluted earnings per share as a result of outstanding participating securities in the form of restricted stock awards. The following tables set 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
Basic Earnings per Share (in thousands except per share data)	August 31, 2020		August 31, 2019
Net income	$	300,005	$	250,812
Less: income allocated to participating securities	2,173		2,016
Income available to common shareholders	$	297,832	$	248,796
Basic weighted average common shares outstanding	104,110		103,543
Basic earnings per share	$	2.86	$	2.40

	Three Months Ended
Diluted Earnings per Share (in thousands except per share data)	August 31, 2020		August 31, 2019
Net income	$	300,005	$	250,812
Less: income allocated to participating securities	2,173		2,016
Income available to common shareholders	$	297,832	$	248,796
Basic weighted average common shares outstanding	104,110		103,543
Effect of dilutive securities – employee stock options	3,019		3,540
Diluted weighted average common shares outstanding	107,129		107,083
Diluted earnings per share	$	2.78	$	2.32

For both the three months ended August 31, 2020 and 2019, options granted to purchase 0.2 million shares of Cintas common stock were excluded from the computation of diluted earnings per share. The exercise prices of these options were greater than the average market price of the common stock (anti-dilutive).

On October 30, 2018, Cintas 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 that 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 three months ended August 31:

	2020					2019
Buyback Program (In thousands except per share data)	Shares	Avg. Price per Share		Purchase Price		Shares	Avg. Price per Share		Purchase 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 August 31, 2020, through October 9, 2020, under any share buyback program. From the inception of the October 30, 2018 program through October 9, 2020, Cintas has purchased a total of 4.3 million shares of Cintas common stock at an average price of $219.42 per share for a total purchase price of $939.1 million.

For the three months ended August 31, 2020, Cintas acquired 0.2 million shares of Cintas common stock for employee payroll taxes due on restricted stock awards that vested during the three months ended August 31, 2020. These shares were acquired at an average price of $300.01 per share for a total purchase price of $69.0 million. For the three months ended August 31, 2019, Cintas acquired 0.2 million shares of Cintas common stock for employee payroll taxes dues on restricted stock awards that vested during the three months ended August 31, 2019. These shares were acquired at an average price of $260.83 per share for a total purchase price of $63.7 million.