Earnings per Share

6 Months Ended

Nov. 30, 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		Six Months Ended
	November 30,		November 30,
	2011	2010	2011	2010
Basic Earnings per Share
Net income	$  74,350	$   55,866	$142,988	$ 117,143
Less dividends to:
Common shares	$  70,055	$   71,197	$  70,055	$   71,197
Unvested shares	765	683	765	683
Total dividends	$  70,820	$   71,880	$  70,820	$   71,880
Undistributed net income (loss)	$    3,530	$ (16,014)	$  72,168	$   45,263
Less: net income (loss) allocated to participating unvested securities	21	(74)	448	204
Net income (loss) available to common shareholders	$    3,509	$ (15,940)	$  71,720	$   45,059
Basic weighted average common shares outstanding	129,727	145,511	130,522	148,856
Basic earnings per share:
Common shares – distributed earnings	$      0.54	$       0.49	$      0.54	$       0.49
Common shares – undistributed earnings	0.03	(0.11)	0.55	0.29
Total common shares	$      0.57	$       0.38	$      1.09	$       0.78
Unvested shares - distributed earnings	$      0.54	$       0.49	$      0.54	$       0.49
Unvested shares - undistributed earnings	0.03	(0.11)	0.55	0.29
Total unvested shares	$      0.57	$       0.38	$      1.09	$       0.78

CINTAS CORPORATION

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

(Unaudited)

(In thousands except per share data)	Three Months Ended		Six Months Ended
	November 30,		November 30,
	2011	2010	2011	2010
Diluted Earnings per Share
Net income	$  74,350	$   55,866	$142,988	$ 117,143
Less dividends to:
Common shares	$  70,055	$   71,197	$  70,055	$   71,197
Unvested shares	765	683	765	683
Total dividends	$  70,820	$   71,880	$  70,820	$   71,880
Undistributed net income (loss)	$    3,530	$ (16,014)	$  72,168	$   45,263
Less: net income (loss) allocated to participating unvested securities	21	(74)	448	204
Net income (loss) available to common shareholders	$    3,509	$ (15,940)	$  71,720	$   45,059
Basic weighted average common shares outstanding	129,727	145,511	130,522	148,856
Effect of dilutive securities – employee stock options	13	----	21	----
Diluted weighted average common shares outstanding	129,740	145,511	130,543	148,856
Diluted earnings per share:
Common shares – distributed earnings	$      0.54	$       0.49	$      0.54	$       0.49
Common shares – undistributed earnings	0.03	(0.11)	0.55	0.29
Total common shares	$      0.57	$       0.38	$      1.09	$       0.78
Unvested shares - distributed earnings	$      0.54	$       0.49	$      0.54	$       0.49
Unvested shares - undistributed earnings	0.03	(0.11)	0.55	0.29
Total unvested shares	$      0.57	$       0.38	$      1.09	$       0.78

For the three months ended November 30, 2011 and 2010, 3.3 million and 3.5 million options granted to purchase shares of Cintas common stock were excluded from the computation of diluted earnings per share, respectively.  For the six months ended November 30, 2011 and 2010, 2.6 million and 3.9 million options granted to purchase shares of Cintas common stock were excluded from the computation of diluted earnings per share, respectively.  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 aggregate purchase price of $500.0 million.  On October 18, 2011, we announced that the Board of Directors authorized a new $500.0 million share buyback program at market prices.  This new share buyback program does not have an expiration date, and purchases will be made at the discretion of the Board of Directors.