Earnings per Share

12 Months Ended

May 31, 2011

Earnings per Share

Earnings per Share

10.  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)		2011		2010		2009
Basic and Diluted Earnings per Share
Net income	$	246,989	$	215,620	$	226,357
Less dividends to:
Common shares	$	71,197	$	73,377	$	71,811
Unvested shares		615		583		396
Total dividends	$	71,812	$	73,960	$	72,207
Undistributed net income	$	175,177	$	141,660	$	154,150
Less: net income allocated to participating unvested securities		1,097		661		427
Net income available to common shareholders	$	174,080	$	140,999	$	153,723
Basic weighted average common shares outstanding		146,586		152,858		152,942
Effect of dilutive securities — employee stock options		—		—		—
Diluted weighted average common shares outstanding		146,586		152,858		152,942
Basic and diluted earnings per share:
Common shares — distributed earnings	$	0.49	$	0.48	$	0.47
Common shares — undistributed earnings		1.19		0.92		1.01
Total common shares	$	1.68	$	1.40	$	1.48
Unvested shares — distributed earnings	$	0.49	$	0.48	$	0.47
Unvested shares — undistributed earnings		1.19		0.92		1.01
Total unvested shares	$	1.68	$	1.40	$	1.48

For the fiscal years ended May 31, 2011, 2010 and 2009, 3.9 million, 4.5 million and 5.5 million options granted to purchase 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 May 2, 2005 share buyback program by purchasing 7.7 million shares of Cintas common stock for a total purchase of $202.1 million of Cintas common stock by the end of September 30, 2010. On October 26, 2010, we announced that the Board of Directors authorized an additional $500.0 million share buyback program at market prices. Beginning in April 2011, under this new program, we purchased 7.7 million shares of Cintas common stock for a purchase price of $240.5 million, which resulted in a total purchase of $442.5 million of Cintas common stock through May 31, 2011. We completed the October 26, 2010 share buyback program by purchasing an additional 8.1 million shares of Cintas common stock in June and July 2011 for $259.5 million. From the inception of the October 26, 2010 share buyback program through July 29, 2011, Cintas has purchased a total of 15.8 million shares of Cintas common stock at an average price of $31.70 per share for a total purchase price of $500.0 million.