Earnings per Share

12 Months Ended

May 31, 2012

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:

(In thousands except per share data)	2012		2011		2010
Basic Earnings per Share
Net income	$	297,637	$	246,989	$	215,620
Less dividends to:
Common shares	$	70,055	$	71,197	$	73,377
Unvested shares	765		615		583
Total dividends	$	70,820	$	71,812	$	73,960
Undistributed net income	$	226,817	$	175,177	$	141,660
Less: net income allocated to participating unvested securities	1,880		1,097		661
Net income available to common shareholders	$	224,937	$	174,080	$	140,999
Basic weighted average common shares outstanding	129,891		146,586		152,858
Basic earnings per share:
Common shares — distributed earnings	$	0.54	$	0.49	$	0.48
Common shares — undistributed earnings	1.73		1.19		0.92
Total common shares	$	2.27	$	1.68	$	1.40
Unvested shares — distributed earnings	$	0.54	$	0.49	$	0.48
Unvested shares — undistributed earnings	1.73		1.19		0.92
Total unvested shares	$	2.27	$	1.68	$	1.40

(In thousands except per share data)	2012		2011		2010
Diluted Earnings per Share
Net income	$	297,637	$	246,989	$	215,620
Less dividends to:
Common shares	$	70,055	$	71,197	$	73,377
Unvested shares	765		615		583
Total dividends	$	70,820	$	71,812	$	73,960
Undistributed net income	$	226,817	$	175,177	$	141,660
Less: net income allocated to participating unvested securities	1,880		1,097		661
Net income available to common shareholders	$	224,937	$	174,080	$	140,999
Basic weighted average common shares outstanding	129,891		146,586		152,858
Effect of dilutive securities — employee stock options	142		—		—
Diluted weighted average common shares outstanding	130,033		146,586		152,858
Diluted earnings per share:
Common shares — distributed earnings	$	0.54	$	0.49	$	0.48
Common shares — undistributed earnings	1.73		1.19		0.92
Total common shares	$	2.27	$	1.68	$	1.40
Unvested shares — distributed earnings	$	0.54	$	0.49	$	0.48
Unvested shares — undistributed earnings	1.73		1.19		0.92
Total unvested shares	$	2.27	$	1.68	$	1.40

For the fiscal years ended May 31, 2012, 2011 and 2010, options granted to purchase 2.0 million, 3.9 million and 4.5 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).

We completed the October 26, 2010 share buyback program by purchasing 8.1 million shares of Cintas common stock in June and July 2011 for a total of $259.5 million. On October 18, 2011, we announced that the Board of Directors authorized an additional $500.0 million share buyback program at market prices.  Beginning in April 2012, under this new program, we purchased 3.3 million shares of Cintas common stock for a total purchase price of $129.6 million. During fiscal 2012, Cintas purchased a total of 11.4 million shares of Cintas common stock at an average price of $34.24 per share for a total purchase price of $389.1 million. In July 2012, we purchased 0.6 million shares of Cintas stock for $23.7 million. From the inception of the October 18, 2011 share buyback program through July 30, 2012, Cintas has purchased a total of 3.9 million shares of Cintas common stock at an average price of $38.86 per share for a total purchase price of $153.3 million. In addition, for the fiscal year ended May 31, 2012, Cintas acquired 0.1 million shares of Cintas common stock in trade for employee payroll taxes due on restricted stock awards that vested during the fiscal year. These shares were acquired at an average price of $32.05 per share for a total purchase price of $3.2 million.