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				Nine Months Ended
(In thousands except per share data)	February 28, 2014		February 28, 2013		February 28, 2014		February 28, 2013
Basic Earnings per Share
Net income	$	84,602	$	74,705	$	247,218	$	229,465

Less dividends to:
Common shares	$	—	$	—	$	92,244	$	78,866
Unvested shares	—		—		1,070		878
Total dividends	$	—	$	—	$	93,314	$	79,744

Undistributed net income	$	84,602	$	74,705	$	153,904	$	149,721

Less: net income allocated to participating unvested securities	685		517		1,237		1,048

Net income available to common shareholders	$	83,917	$	74,188	$	152,667	$	148,673

Basic weighted average common shares outstanding	119,913		123,120		120,658		124,483

Basic earnings per common share:
Common shares - distributed earnings	$	0.00	$	0.00	$	0.77	$	0.64
Common shares - undistributed earnings	0.70		0.60		1.27		1.20
Total common shares	$	0.70	$	0.60	$	2.04	$	1.84

Unvested shares - distributed earnings	$	0.00	$	0.00	$	0.77	$	0.64
Unvested shares - undistributed earnings	0.70		0.60		1.27		1.20
Total unvested shares	$	0.70	$	0.60	$	2.04	$	1.84



	Three Months Ended				Nine Months Ended
(In thousands except per share data)	February 28, 2014		February 28, 2013		February 28, 2014		February 28, 2013
Diluted Earnings per Share
Net income	$	84,602	$	74,705	$	247,218	$	229,465

Less dividends to:
Common shares	$	—	$	—	$	92,244	$	78,866
Unvested shares	—		—		1,070		878
Total dividends	$	—	$	—	$	93,314	$	79,744

Undistributed net income	$	84,602	$	74,705	$	153,904	$	149,721

Less: net income allocated to participating unvested securities	685		517		1,237		1,048

Net income available to common shareholders	$	83,917	$	74,188	$	152,667	$	148,673

Basic weighted average common shares outstanding	119,913		123,120		120,658		124,483

Effect of dilutive securities – employee stock options	1,367		637		1,156		418

Diluted weighted average common shares outstanding	121,280		123,757		121,814		124,901

Diluted earnings per share:
Common shares - distributed earnings	$	0.00	$	0.00	$	0.77	$	0.64
Common shares - undistributed earnings	0.69		0.60		1.25		1.19
Total common shares	$	0.69	$	0.60	$	2.02	$	1.83

Unvested shares - distributed earnings	$	0.00	$	0.00	$	0.77	$	0.64
Unvested shares - undistributed earnings	0.69		0.60		1.25		1.19
Total unvested shares	$	0.69	$	0.60	$	2.02	$	1.83

For the three months ended February 28, 2014 and 2013, options granted to purchase 0.4 million and 0.6 million shares of Cintas common stock, respectively, were excluded from the computation of diluted earnings per share. For the nine months ended February 28, 2014 and 2013, options granted to purchase 0.6 million and 0.8 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).

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 February 28, 2014, no shares of Cintas common stock were purchased. For the first nine months ended February 28, 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 February 28, 2014 through April 9, 2014, we did not purchase any shares of Cintas common stock. From the inception of the October 18, 2011 share buyback program through April 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 nine months ended February 28, 2014, Cintas acquired 0.1 million shares of Cintas common stock for employee payroll taxes due on restricted stock awards that vested during the nine months ended February 28, 2014. These shares were acquired at an average price of $48.20 per share for a total purchase price of $6.7 million. Of this total purchase price, $0.2 million occurred in the three months ended February 28, 2014.