| 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: | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | (In thousands except per share data) | November 30,
2012 | | November 30,
2011 | | November 30,
2012 | | November 30,
2011 | Basic Earnings per Share | |
| | |
| | | | | Net income | $ | 78,027 |
| | $ | 74,350 |
| | $ | 154,760 |
| | $ | 142,988 |
| | | | | | | | | Less dividends to: | | | | | | | | Common shares | $ | 78,866 |
| | $ | 70,055 |
| | $ | 78,866 |
| | $ | 70,055 |
| Unvested shares | 878 |
| | 765 |
| | 878 |
| | 765 |
| Total dividends | $ | 79,744 |
| | $ | 70,820 |
| | $ | 79,744 |
| | $ | 70,820 |
| | | | | | | | | Undistributed net (loss) income | $ | (1,717 | ) | | $ | 3,530 |
| | $ | 75,016 |
| | $ | 72,168 |
| | | | | | | | | Less: net (loss) income allocated to participating unvested securities | (8 | ) | | 21 |
| | 409 |
| | 448 |
| | | | | | | | | Net (loss) income available to common shareholders | $ | (1,709 | ) | | $ | 3,509 |
| | $ | 74,607 |
| | $ | 71,720 |
| | | | | | | | | Basic weighted average common shares outstanding | 124,185 |
| | 129,727 |
| | 125,153 |
| | 130,522 |
| | | | | | | | | Basic earnings per common share: | | | | | | | | Common shares - distributed earnings | $ | 0.64 |
| | $ | 0.54 |
| | $ | 0.64 |
| | $ | 0.54 |
| Common shares - undistributed earnings | (0.01 | ) | | 0.03 |
| | 0.60 |
| | 0.55 |
| Total common shares | $ | 0.63 |
| | $ | 0.57 |
| | $ | 1.24 |
| | $ | 1.09 |
| | | | | | | | | Unvested shares - distributed earnings | $ | 0.64 |
| | $ | 0.54 |
| | $ | 0.64 |
| | $ | 0.54 |
| Unvested shares - undistributed earnings | (0.01 | ) | | 0.03 |
| | 0.60 |
| | 0.55 |
| Total unvested shares | $ | 0.63 |
| | $ | 0.57 |
| | $ | 1.24 |
| | $ | 1.09 |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | (In thousands except per share data) | November 30,
2012 | | November 30,
2011 | | November 30,
2012 | | November 30,
2011 | Diluted Earnings per Share | |
| | |
| | | | | Net income | $ | 78,027 |
| | $ | 74,350 |
| | $ | 154,760 |
| | $ | 142,988 |
| | | | | | | | | Less dividends to: | | | | | | | | Common shares | $ | 78,866 |
| | $ | 70,055 |
| | $ | 78,866 |
| | $ | 70,055 |
| Unvested shares | 878 |
| | 765 |
| | 878 |
| | 765 |
| Total dividends | $ | 79,744 |
| | $ | 70,820 |
| | $ | 79,744 |
| | $ | 70,820 |
| | | | | | | | | Undistributed net (loss) income | $ | (1,717 | ) | | $ | 3,530 |
| | $ | 75,016 |
| | $ | 72,168 |
| | | | | | | | | Less: net (loss) income allocated to participating unvested securities | (8 | ) | | 21 |
| | 409 |
| | 448 |
| | | | | | | | | Net (loss) income available to common shareholders | $ | (1,709 | ) | | $ | 3,509 |
| | $ | 74,607 |
| | $ | 71,720 |
| | | | | | | | | Basic weighted average common shares outstanding | 124,185 |
| | 129,727 |
| | 125,153 |
| | 130,522 |
| | | | | | | | | Effect of dilutive securities – employee stock options | 424 |
| | 13 |
| | 388 |
| | 21 |
| | | | | | | | | Diluted weighted average common shares outstanding | 124,609 |
| | 129,740 |
| | 125,541 |
| | 130,543 |
| | | | | | | | | Diluted earnings per share: |
|
| |
|
| | | | | Common shares - distributed earnings | $ | 0.64 |
| | $ | 0.54 |
| | $ | 0.64 |
| | $ | 0.54 |
| Common shares - undistributed earnings | (0.01 | ) | | 0.03 |
| | 0.59 |
| | 0.55 |
| Total common shares | $ | 0.63 |
| | $ | 0.57 |
| | $ | 1.23 |
| | $ | 1.09 |
| | | | | | | | | Unvested shares - distributed earnings | $ | 0.64 |
| | $ | 0.54 |
| | $ | 0.64 |
| | $ | 0.54 |
| Unvested shares - undistributed earnings | (0.01 | ) | | 0.03 |
| | 0.59 |
| | 0.55 |
| Total unvested shares | $ | 0.63 |
| | $ | 0.57 |
| | $ | 1.23 |
| | $ | 1.09 |
|
For the three months ended November 30, 2012 and 2011, 0.4 million and 3.3 million options granted to purchase shares of Cintas common stock were excluded from the computation of diluted earnings per share, respectively. For the six months ended November 30, 2012 and 2011, 0.7 million and 2.6 million options granted to purchase shares of Cintas common stock were excluded from the computation of diluted earnings per share, respectively. The exercise prices of these options were greater than the average market price of the common stock (anti-dilutive). On October 18, 2011, we announced that the Board of Directors authorized a $500.0 million share buyback program at market prices. During the first six months of fiscal 2013, we purchased 3.8 million shares of Cintas common stock for a total purchase price of $151.7 million. From the inception of the October 18, 2011 share buyback program through January 9, 2013, Cintas has purchased a total of 7.1 million shares of Cintas common stock at an average price of $39.72 for a total purchase price of $281.3 million. In addition, for the six months ended November 30, 2012, Cintas acquired 0.2 million shares of Cintas common stock for employee payroll taxes due on restricted stock awards that vested during the six months ended November 30, 2012. These shares were acquired at an average price of $37.88 per share for a total purchase price of $7.5 million. |