Earnings per Share

3 Months Ended

Aug. 31, 2011

Earnings per Share

Earnings per Share

4. 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)	Three Months Ended
		August 31, 2011		August 31, 2010
Basic Earnings per Share
Net income		$	68,638	$	61,277
Less: net income allocated to participating unvested securities		370		227
Net income available to common shareholders		$	68,268	$	61,050
Basic weighted average common shares outstanding		131,309		152,164
Basic earnings per share		$	0.52	$	0.40
Diluted Earnings per Share
Net income		$	68,638	$	61,277
Less: net income allocated to participating unvested securities		370		227
Net income available to common shareholders		$	68,268	$	61,050
Basic weighted average common shares outstanding		131,309		152,164
Effect of dilutive securities – employee stock options		29		—
Diluted weighted average common shares outstanding		131,338		152,164
Diluted earnings per share		$	0.52	$	0.40

For the three months ended August 31, 2011 and 2010, 2.5 million and 5.0 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 stock (anti-dilutive).

On October 26, 2010, we announced that the Board of Directors authorized an additional $500.0 million share buyback program at market prices.  We completed the October 26, 2010 share buyback program by purchasing 8.1 million shares of Cintas common stock in June and July 2011 for an aggregate purchase price of $259.5 million.  From the inception of the October 26, 2010 share buyback program through July 29, 2011, Cintas 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.