Earnings Per Share

6 Months Ended

Nov. 30, 2021

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				Six Months Ended
Basic Earnings per Share (In thousands except per share data)	November 30, 2021		November 30, 2020		November 30, 2021		November 30, 2020

Net income	$	294,669	$	284,857	$	625,848	$	584,862
Less: income allocated to participating securities	1,495		2,015		3,179		4,153
Income available to common shareholders	$	293,174	$	282,842	$	622,669	$	580,709
Basic weighted average common shares outstanding	103,646		104,999		103,463		104,546

Basic earnings per share	$	2.83	$	2.69	$	6.02	$	5.55



	Three Months Ended				Six Months Ended
Diluted Earnings per Share (In thousands except per share data)	November 30, 2021		November 30, 2020		November 30, 2021		November 30, 2020

Net income	$	294,669	$	284,857	$	625,848	$	584,862
Less: income allocated to participating securities	1,495		2,015		3,179		4,153
Income available to common shareholders	$	293,174	$	282,842	$	622,669	$	580,709
Basic weighted average common shares outstanding	103,646		104,999		103,463		104,546
Effect of dilutive securities – employee stock options	2,476		2,982		2,563		3,010
Diluted weighted average common shares outstanding	106,122		107,981		106,026		107,556

Diluted earnings per share	$	2.76	$	2.62	$	5.87	$	5.40

For the three months ended November 30, 2021 and 2020, options granted to purchase 0.1 million and 0.2 million shares of Cintas common stock, respectively, were excluded from the computation of diluted earnings per share. For the six months ended November 30, 2021 and 2020, options granted to purchase 0.1 million and 0.2 million shares of Cintas common stock, respectively, 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 29, 2019, Cintas announced that the Board of Directors authorized a $1.0 billion share buyback program, which was completed during the first quarter of fiscal 2022. From the inception of the October 29, 2019 share buyback program through July 2021, Cintas purchased a total of 2.8 million shares of Cintas common stock at an average price of $358.93 per share for a total purchase price of $1.0 billion. On July 27, 2021, Cintas announced that the Board of Directors authorized a new $1.5 billion share buyback program, which does not have an expiration date. There were no share buybacks for the three months ended November 30, 2021 or 2020. The following table summarizes the share buyback activity by program for the six months ended November 30:



	2021					2020
Buyback Program (In thousands except per share data)	Shares	Avg. Price per Share		Purchase Price		Shares	Avg. Price per Share		Purchase Price


October 29, 2019	1,590	$	365.41	$	581,220	—	$	—	$	—
July 27, 2021	—	$	—	$	—	—	$	—	$	—
	1,590	$	365.41	$	581,220	—	$	—	$	—

For the three months ended November 30, 2021, Cintas acquired less than 0.1 million shares of Cintas common stock for employee payroll taxes due on restricted stock awards that vested. These shares were acquired at an average price of $420.87 per share for a total purchase price of $5.5 million. For the three months ended November 30, 2020, Cintas acquired less than 0.1 million shares of Cintas common stock for employee payroll taxes due on restricted stock awards that vested. These shares were acquired at an average price of $333.60 per share for a total purchase price of $2.4 million. During the six months ended November 30, 2021, Cintas acquired 0.2 million shares of Cintas common stock for employee payroll taxes due on restricted stock awards that vested. These shares were acquired at an average price of $395.84 per share for a total purchase price of $83.5 million. During the six months ended November 30, 2020, Cintas acquired 0.2 million shares of Cintas common stock for employee payroll taxes due on restricted stock awards that vested. These shares were acquired at an average price of $301.01 per share for a total purchase price of $71.4 million.