Earnings per Share

12 Months Ended

May 31, 2022

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 13 entitled Stock-Based Compensation for additional information on restricted stock awards. The following tables set 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)	2022		2021		2020

Income from continuing operations	$	1,235,757	$	1,110,968	$	876,360
Less: income from continuing operations allocated to participating securities	6,132		7,623		8,158
Income from continuing operations available to common shareholders	$	1,229,625	$	1,103,345	$	868,202
Basic weighted average common shares outstanding	103,172		104,874		103,816

Basic earnings per share from continuing operations	$	11.92	$	10.52	$	8.36


Diluted Earnings per Share from Continuing Operations (In thousands except per share data)	2022		2021		2020

Income from continuing operations	$	1,235,757	$	1,110,968	$	876,360
Less: income from continuing operations allocated to participating securities	6,132		7,623		8,158
Income from continuing operations available to common shareholders	$	1,229,625	$	1,103,345	$	868,202
Basic weighted average common shares outstanding	103,172		104,874		103,816
Effect of dilutive securities – employee stock options	2,351		2,833		3,196
Diluted weighted average common shares outstanding	105,523		107,707		107,012

Diluted earnings per share from continuing operations	$	11.65	$	10.24	$	8.11

Basic and diluted earnings per share from discontinued operations were calculated using the two-class method. There were no discontinued operations for the fiscal years ended May 31, 2022 and 2021. Basic and diluted earnings per share from discontinued operations rounded to $0.00 for the fiscal year ended May 31, 2020.

For the fiscal years ended May 31, 2022, 2021 and 2020, options granted to purchase 0.5 million, 0.2 million and 0.2 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 October 30, 2018, we announced that the Board of Directors authorized a $1.0 billion share buyback program, which was completed during the third quarter of fiscal 2021. On October 29, 2019, we announced the Board of Directors authorized a $1.0 billion share buyback program, which was completed during the first quarter of fiscal 2022. On July 27, 2021, we announced that the Board of Directors authorized a new $1.5 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:


	2022					2021					2020
Buyback Program (In thousands except per share data)	Shares	Average Price per Share		Purchase Price		Shares	Average Price per Share		Purchase Price		Shares	Average Price per Share		Purchase Price

October 30, 2018	—	$	—	$	—	190	$	319.88	$	60,877	1,607	$	246.19	$	395,681
October 29, 2019	1,590	365.41		581,220		1,196	350.31		418,779		—	—		—
July 27, 2021	2,150	383.01		823,429		—	—		—		—	—		—
	3,740	$	375.53	$	1,404,649	1,386	$	346.13	$	479,656	1,607	$	246.19	$	395,681

Shares acquired for taxes due (1)	305	$	397.16	$	121,224	246	$	302.52	$	74,465	264	$	260.89	$	68,837

Total repurchase of Cintas common stock				$	1,525,873				$	554,121				$	464,518

(1) Shares of Cintas stock acquired for employee payroll taxes due on options exercised and vested restricted stock awards.

In addition to the share buyback activity presented above, Cintas acquired shares of Cintas common stock, via non-cash transactions, in connection with net-share settlements of option exercises. During the fiscal year ended May 31, 2022, Cintas acquired 0.1 million shares of Cintas common stock via such non-cash transactions at an average price of $402.73 for a total non-cash value of $28.7 million.

In the period subsequent to May 31, 2022, through July 27, 2022, we purchased 0.5 million shares of Cintas common stock at an average price of $396.39 for a total purchase price of $210.8 million. From the inception of the July 27, 2021 share buyback program through July 27, 2022, Cintas has purchased 2.7 million shares of Cintas common stock in the aggregate, at an average price of $385.66 per share, for a total purchase price of $1.0 billion.