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, 2013			November 30, 2012			November 30, 2013		November 30, 2012
Basic Earnings per Share
Net income	$	84,862		$	78,027		$	162,616	$	154,760

Less dividends to:
Common shares	$	92,229		$	78,866		$	92,229	$	78,866
Unvested shares	1,091			878			1,091		878
Total dividends	$	93,320		$	79,744		$	93,320	$	79,744

Undistributed net (loss) income	$	(8,458	)	$	(1,717	)	$	69,296	$	75,016

Less: net (loss) income allocated to participating unvested securities	(59		)	(8		)	482		409

Net (loss) income available to common shareholders	$	(8,399	)	$	(1,709	)	$	68,814	$	74,607

Basic weighted average common shares outstanding	119,907			124,185			121,025		125,153

Basic earnings per common share:
Common shares - distributed earnings	$	0.77		$	0.64		$	0.77	$	0.64
Common shares - undistributed earnings	(0.06		)	(0.01		)	0.57		0.60
Total common shares	$	0.71		$	0.63		$	1.34	$	1.24

Unvested shares - distributed earnings	$	0.77		$	0.64		$	0.77	$	0.64
Unvested shares - undistributed earnings	(0.06		)	(0.01		)	0.57		0.60
Total unvested shares	$	0.71		$	0.63		$	1.34	$	1.24



	Three Months Ended						Six Months Ended
(In thousands except per share data)	November 30, 2013			November 30, 2012			November 30, 2013		November 30, 2012
Diluted Earnings per Share
Net income	$	84,862		$	78,027		$	162,616	$	154,760

Less dividends to:
Common shares	$	92,229		$	78,866		$	92,229	$	78,866
Unvested shares	1,091			878			1,091		878
Total dividends	$	93,320		$	79,744		$	93,320	$	79,744

Undistributed net (loss) income	$	(8,458	)	$	(1,717	)	$	69,296	$	75,016

Less: net (loss) income allocated to participating unvested securities	(59		)	(8		)	482		409

Net (loss) income available to common shareholders	$	(8,399	)	$	(1,709	)	$	68,814	$	74,607

Basic weighted average common shares outstanding	119,907			124,185			121,025		125,153

Effect of dilutive securities – employee stock options	1,143			424			991		388

Diluted weighted average common shares outstanding	121,050			124,609			122,016		125,541

Diluted earnings per share:
Common shares - distributed earnings	$	0.77		$	0.64		$	0.77	$	0.64
Common shares - undistributed earnings	(0.07		)	(0.01		)	0.56		0.59
Total common shares	$	0.70		$	0.63		$	1.33	$	1.23

Unvested shares - distributed earnings	$	0.77		$	0.64		$	0.77	$	0.64
Unvested shares - undistributed earnings	(0.07		)	(0.01		)	0.56		0.59
Total unvested shares	$	0.70		$	0.63		$	1.33	$	1.23

For the three months ended November 30, 2013 and 2012, options granted to purchase 0.5 million and 0.4 million shares of Cintas common stock were excluded from the computation of diluted earnings per share, respectively. For both the six months ended November 30, 2013 and 2012, options granted to purchase 0.7 million shares of Cintas common stock 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).

On October 18, 2011, we announced that the Board of Directors authorized a $500.0 million share buyback program. On July 30, 2013, we announced that the Board of Directors authorized a new $500.0 million share buyback program, which does not have an expiration date. For the three months ended November 30, 2013, we purchased 1.1 million shares of Cintas common stock for a total purchase price of $56.9 million. During the first six months of fiscal 2014, we purchased 3.2 million shares of Cintas common stock for a total purchase price of $157.7 million. In the period subsequent to November 30, 2013 through January 9, 2014, we did not purchase any shares of Cintas common stock. From the inception of the October 18, 2011 share buyback program through January 9, 2014, Cintas has purchased a total of 11.6 million shares of Cintas common stock at an average price of $42.58 for a total purchase price of $495.3 million. In addition, for the six months ended November 30, 2013, Cintas acquired 0.1 million shares of Cintas common stock for employee payroll taxes due on restricted stock awards that vested during the six months ended November 30, 2013. These shares were acquired at an average price of $47.89 per share for a total purchase price of $6.5 million. Of the total purchase price, $0.3 million occurred in the three months ended November 30, 2013.