Earnings per Share

12 Months Ended

May 31, 2013

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)	2013		2012		2011
Basic Earnings per Share
Net income	$	315,442	$	297,637	$	246,989
Less dividends to:
Common shares	$	78,866	$	70,055	$	71,197
Unvested shares	878		765		615
Total dividends	$	79,744	$	70,820	$	71,812
Undistributed net income	$	235,698	$	226,817	$	175,177
Less: net income allocated to participating unvested securities	1,896		1,880		1,097
Net income available to common shareholders	$	233,802	$	224,937	$	174,080
Basic weighted average common shares outstanding	123,956		129,891		146,586
Basic earnings per share:
Common shares — distributed earnings	$	0.64	$	0.54	$	0.49
Common shares — undistributed earnings	1.89		1.73		1.19
Total common shares	$	2.53	$	2.27	$	1.68
Unvested shares — distributed earnings	$	0.64	$	0.54	$	0.49
Unvested shares — undistributed earnings	1.89		1.73		1.19
Total unvested shares	$	2.53	$	2.27	$	1.68

(In thousands except per share data)	2013		2012		2011
Diluted Earnings per Share
Net income	$	315,442	$	297,637	$	246,989
Less dividends to:
Common shares	$	78,866	$	70,055	$	71,197
Unvested shares	878		765		615
Total dividends	$	79,744	$	70,820	$	71,812
Undistributed net income	$	235,698	$	226,817	$	175,177
Less: net income allocated to participating unvested securities	1,896		1,880		1,097
Net income available to common shareholders	$	233,802	$	224,937	$	174,080
Basic weighted average common shares outstanding	123,956		129,891		146,586
Effect of dilutive securities — employee stock options	575		142		—
Diluted weighted average common shares outstanding	124,531		130,033		146,586
Diluted earnings per share:
Common shares — distributed earnings	$	0.64	$	0.54	$	0.49
Common shares — undistributed earnings	1.88		1.73		1.19
Total common shares	$	2.52	$	2.27	$	1.68
Unvested shares — distributed earnings	$	0.64	$	0.54	$	0.49
Unvested shares — undistributed earnings	1.88		1.73		1.19
Total unvested shares	$	2.52	$	2.27	$	1.68

For the fiscal years ended May 31, 2013, 2012 and 2011, options granted to purchase 0.7 million, 2.0 million and 3.9 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.  Under this new program, we purchased 3.3 million shares of Cintas common stock in April and May 2012 for a total purchase price of $129.6 million. During fiscal 2013, Cintas purchased a total of 5.1 million shares of Cintas common stock at an average price of $40.97 per share for a total purchase price of $208.0 million. From the inception of the October 18, 2011 share buyback program through July 30, 2013, Cintas has purchased a total of 8.6 million shares of Cintas common stock at an average price of $40.43 per share for a total purchase price of $348.9 million. In addition, for the fiscal year ended May 31, 2013, Cintas acquired 0.2 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 $38.04 per share for a total purchase price of $7.7 million.