Earnings per Share

12 Months Ended

May 31, 2023

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. See Note 11 entitled Stock-Based Compensation for additional information on 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 for the fiscal years ended May 31:


Basic Earnings per Share (In thousands except per share data)	2023		2022		2021

Net income	$	1,348,010	$	1,235,757	$	1,110,968
Less: net income allocated to participating securities	5,463		6,132		7,623
Net income available to common shareholders	$	1,342,547	$	1,229,625	$	1,103,345
Basic weighted average common shares outstanding	101,645		103,172		104,874

Basic earnings per share	$	13.21	$	11.92	$	10.52


Diluted Earnings per Share (In thousands except per share data)	2023		2022		2021

Net income	$	1,348,010	$	1,235,757	$	1,110,968
Less: net income allocated to participating securities	5,463		6,132		7,623
Net income available to common shareholders	$	1,342,547	$	1,229,625	$	1,103,345
Basic weighted average common shares outstanding	101,645		103,172		104,874
Effect of dilutive securities – employee stock options	1,732		2,351		2,833
Diluted weighted average common shares outstanding	103,377		105,523		107,707

Diluted earnings per share	$	12.99	$	11.65	$	10.24

For the fiscal years ended May 31, 2023, 2022 and 2021, options granted to purchase 1.0 million, 0.5 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 shares (anti-dilutive).

On October 30, 2018, we announced that the Board of Directors authorized a $1.0 billion share buyback program, which was completed during the third quarter of fiscal 2021. On October 29, 2019, we announced the Board of Directors authorized a $1.0 billion share buyback program, which was completed during the first quarter of fiscal 2022. On July 27, 2021, we announced that the Board of Directors authorized a $1.5 billion share buyback program, which does not have an expiration date. From the inception of the July 27, 2021 share buyback program through May 31, 2023, Cintas purchased a total of 2.7 million shares of Cintas common stock at an average price of $385.80 per share for a total purchase price of $1.0 billion. On July 26, 2022, Cintas 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 fiscal year ended May 31:


	2023					2022					2021
Buyback Program (In thousands except per share data)	Shares	Average Price per Share		Purchase Price		Shares	Average Price per Share		Purchase Price		Shares	Average Price per Share		Purchase Price

October 30, 2018	—	$	—	$	—	—	$	—	$	—	190	$	319.88	$	60,877
October 29, 2019	—	—		—		1,590	365.41		581,220		1,196	350.31		418,779
July 27, 2021	550	396.69		218,288		2,150	383.01		823,429		—	—		—
July 26, 2022	—	—		—		—	—		—		—	—		—
	550	$	396.69	$	218,288	3,740	$	375.53	$	1,404,649	1,386	$	346.13	$	479,656

Shares acquired for taxes due (1)	430	$	420.21	$	180,577	305	$	397.16	$	121,224	246	$	302.52	$	74,465

Total repurchase of Cintas common stock				$	398,865				$	1,525,873				$	554,121

(1) Shares of Cintas stock acquired for employee payroll taxes due on options exercised and vested restricted stock awards.

There were no share buybacks in the period subsequent to May 31, 2023, through July 27, 2023, under any share buyback program.

In addition to the share buyback activity presented above, beginning in fiscal 2022, Cintas acquired shares of Cintas common stock, via non-cash transactions, in connection with net-share settlements of option exercises. The following table summarizes Cintas' non-cash share buyback activity for the fiscal year ended May 31:


	2023					2022
Buyback Program (In thousands except per share data)	Shares	Average Price per Share		Non-Cash Value		Shares	Average Price per Share		Non-Cash Value

Non-cash transaction activity	360	$	424.86	$	152,983	71	$	402.73	$	28,670