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 for the three months ended August 31 (in each case as adjusted to reflect the Stock Split):


Basic Earnings per Share (In thousands except per share data)	2024		2023



Net income	$	452,033	$	385,085
Less: net income allocated to participating securities	1,654		1,560
Net income available to common shareholders	$	450,379	$	383,525
Basic weighted average common shares outstanding	403,382		407,580

Basic earnings per share	$	1.12	$	0.94


Diluted Earnings per Share (In thousands except per share data)	2024		2023



Net income	$	452,033	$	385,085
Less: net income allocated to participating securities	1,654		1,560
Net income available to common shareholders	$	450,379	$	383,525
Basic weighted average common shares outstanding	403,382		407,580
Effect of dilutive securities – employee stock options	7,114		6,709
Diluted weighted average common shares outstanding	410,496		414,289

Diluted earnings per share	$	1.10	$	0.93

For the three months ended August 31, 2024 and 2023, options granted to purchase 0.3 million and 0.6 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).

Cintas announced on July 27, 2021, July 26, 2022, and July 23, 2024, that the Board of Directors (the Board) authorized share buyback programs for $1.5 billion, $1.0 billion and $1.0 billion, respectively. None of the share buyback programs have an expiration date. The following table summarizes the share buyback activity by program and period for the three months ended August 31:




	2024					2023
Buyback Activity (In thousands except per share data)	Shares	Avg. Price per Share		Purchase Price		Shares	Avg. Price per Share		Purchase Price

July 27, 2021 (1)	—	$	—	$	—	—	$	—	$	—
July 26, 2022	2,732	173.40		473,617		—	—		—
July 23, 2024	—	—		—		—	—		—
	2,732	$	173.40	$	473,617	—	$	—	$	—

Shares acquired for taxes due (2)	744	$	189.67	$	141,185	582	$	125.80	$	73,276

Total repurchase of Cintas common stock				$	614,802				$	73,276

(1) The July 27, 2021 share buyback program was completed during the fourth quarter of fiscal 2024.

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

In addition to the share buyback activity presented above, 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 three months ended August 31:


	2024					2023
(In thousands except per share data)	Shares	Avg. Price per Share		Non-Cash Value		Shares	Avg. Price per Share		Non-Cash Value

Non-cash transaction activity	407	$	188.68	$	76,824	472	$	125.56	$	59,212

There were no share buybacks in the period subsequent to August 31, 2024, through October 4, 2024. From the inception of the July 26, 2022 share buyback program through October 4, 2024, Cintas has purchased 3.1 million shares of Cintas common stock in the aggregate, at an average price of $172.85 per share, for a total purchase price of $530.7 million. Cintas has made no purchases under the July 23, 2024 share buyback program.