Earnings per Share

12 Months Ended

May 31, 2020

Cintas uses the two-class method to calculate basic and diluted earnings per share as a result of outstanding participating securities in the form of restricted stock awards. See Note 12 entitled Stock-Based Compensation for additional information on restricted stock awards. The following table sets forth the computation of basic and diluted earnings per share from continuing operations using the two-class method for amounts attributable to Cintas' common shares for the fiscal years ended May 31:


Basic Earnings per Share from Continuing Operations (In thousands except per share data)	2020		2019		2018

Income from continuing operations	$	876,360	$	882,635	$	783,932
Less: income from continuing operations allocated to participating securities	8,158		9,568		11,794
Income from continuing operations available to common shareholders	$	868,202	$	873,067	$	772,138
Basic weighted average common shares outstanding	103,816		106,080		106,593

Basic earnings per share from continuing operations	$	8.36	$	8.23	$	7.24


Diluted Earnings per Share from Continuing Operations (In thousands except per share data)	2020		2019		2018

Income from continuing operations	$	876,360	$	882,635	$	783,932
Less: income from continuing operations allocated to participating securities	8,158		9,568		11,794
Income from continuing operations available to common shareholders	$	868,202	$	873,067	$	772,138
Basic weighted average common shares outstanding	103,816		106,080		106,593
Effect of dilutive securities – employee stock options	3,196		3,415		3,217
Diluted weighted average common shares outstanding	107,012		109,495		109,810

Diluted earnings per share from continuing operations	$	8.11	$	7.97	$	7.03

Basic and diluted earnings per share from discontinued operations were calculated using the two-class method. Basic earnings per share from discontinued operations rounded to $0.00, $0.02 and $0.54 for the fiscal years ended May 31, 2020, 2019 and 2018, respectively. Diluted earnings per share from discontinued operations rounded to $0.00, $0.02 and $0.53 for the fiscal years ended May 31, 2020, 2019 and 2018, respectively.

For the fiscal years ended May 31, 2020, 2019 and 2018, options granted to purchase 0.2 million, 0.5 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 shares (anti-dilutive).

On August 2, 2016, we announced that the Board of Directors authorized a $500.0 million share buyback program. This program was completed in November 2018. On October 30, 2018, we announced that the Board of Directors authorized a $1.0 billion share buyback program, which does not have an expiration date. On October 29, 2019, we announced the Board of Directors authorized a new $1.0 billion share buyback program, which does not have an expiration date. The following table summarizes the buyback activity by program and fiscal year ended May 31:


	2020								2019							2018
Buyback Program (In thousands except per share data)	Shares	Avg. Price per Share		Purchase Price		Shares	Avg. Price per Share		Purchase Price		Shares	Avg. Price per Share		Purchase Price

August 2, 2016	—	$	—	$	—	2,130	$	192.55	$	410,003	518	$	173.51	$	89,997
October 30, 2018	1,607	$	246.19	$	395,681	2,673	$	203.30	$	543,442	—	$	—	$	—
October 29, 2019	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—
	1,607	$	246.19	$	395,681	4,803	$	198.53	$	953,445	518	$	173.51	$	89,997

There were no share buybacks in the period subsequent to May 31, 2020 through July 29, 2020, under any share buyback program. From the inception of the October 30, 2018 program through July 29, 2020, Cintas has purchased a total of 4.3 million shares of Cintas common stock at an average price of $219.42 per share for a total purchase price of $939.1 million.

In addition to the buyback programs, Cintas acquired shares of Cintas common stock in satisfaction of employee payroll taxes due on restricted stock awards that vested during the fiscal year. For the fiscal year ended May 31, 2020, Cintas acquired 0.3 million shares at an average price of $260.89 per share for a total purchase price of $68.8 million. For the fiscal year ended May 31, 2019, Cintas acquired 0.3 million shares at an average price of $204.50 per share for a total purchase price of $62.9 million. For the fiscal year ended May 31, 2018, Cintas acquired 0.3 million shares at an average price of $130.30 per share for a total purchase price of $37.3 million.