XML 65 R18.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Stock-Based Compensation | 12 Months Ended
--- | ---
May 31, 2012
Share-based Compensation [Abstract] |
Stock-Based Compensation | Stock-Based Compensation Under the 2005 Equity Compensation Plan adopted by Cintas in fiscal 2006, Cintas may grant officers and key employees equity compensation in the form of stock options, stock appreciation rights, restricted and unrestricted stock awards, performance awards and other stock unit awards up to an aggregate of 14,000,000 shares of Cintas' common stock. At May 31, 2012, 8,171,124 shares of common stock are reserved for future issuance under the 2005 Equity Compensation Plan. The compensation cost for stock-based awards was $20.3 million, $15.2 million and $15.3 million for the fiscal years ended May 31, 2012, 2011 and 2010, respectively. The total income tax benefit recognized in the consolidated income statement for share-based compensation arrangements was $5.6 million, $4.5 million and $3.9 million for the fiscal years ended May 31, 2012, 2011 and 2010, respectively. Stock Options Stock options are granted at the fair market value of the underlying common stock on the date of grant. The option terms are determined by the Compensation Committee of the Board of Directors, but no stock option may be exercised later than 10 years after the date of the grant. The option awards generally have 10-year terms with graded vesting in years 3 through 10 based on continuous service during that period. Cintas recognizes compensation expense for these options using the straight-line recognition method over the vesting period. The fair value of these options was estimated at the date of grant using a Black-Scholes option-pricing model with the following assumptions:
| 2012 |  | 2011 |  | 2010
Risk-free interest rate | 2.4 | % |  | 2.5 | % |  | 3.9 | %
Dividend yield | 1.7 | % |  | 1.5 | % |  | 1.3 | %
Expected volatility of Cintas' common stock | 37.0 | % |  | 30.0 | % |  | 30.0 | %
Expected life of the option in years | 7.5 |  |  | 7.5 |  |  | 7.5 |
The risk-free interest rate is based on U.S. government issues with a remaining term equal to the expected life of the stock options. The determination of expected volatility is based on historical volatility of Cintas' common stock over the period commensurate with the expected term of stock options, as well as other relevant factors. The weighted average expected term was determined based on the historical employee exercise behavior of the options. The weighted-average fair value of stock options granted during fiscal 2012, 2011 and 2010 was $12.08, $8.04 and $8.23, respectively. The information presented in the following table relates primarily to stock options granted and outstanding under either the 2005 Equity Compensation Plan or under previously adopted plans:
| Shares |  | Weighted Average Exercise Price
Outstanding, May 31, 2009 (1,914,710 shares exercisable) | 6,359,424 |  |  | $ | 38.91 |
Granted | 1,070,798 |  |  | 28.52 |
Canceled | (963,016 | ) |  | 35.98 |
Exercised | — |  |  | — |
Outstanding, May 31, 2010 (1,838,530 shares exercisable) | 6,467,206 |  |  | 37.63 |
Granted | 2,030,764 |  |  | 32.42 |
Canceled | (833,267 | ) |  | 38.76 |
Exercised | — |  |  | — |
Outstanding, May 31, 2011 (1,945,207 shares exercisable) | 7,664,703 |  |  | 36.12 |
Granted | 1,638,907 |  |  | 36.26 |
Canceled | (1,591,480 | ) |  | 36.90 |
Exercised | (103,013 | ) |  | 32.66 |
Outstanding, May 31, 2012 (2,105,702 shares exercisable) | 7,609,117 |  |  | $ | 36.04 |
The intrinsic value of stock options exercised during fiscal 2012 was $0.6 million. The total cash received from employees as a result of employee stock option exercises for the fiscal year ended May 31, 2012, was $3.3 million. There were no stock options exercised during the years ended May 31, 2011 or 2010. The fair value of stock options vested was $12.9 million, $9.0 million and $6.8 million for the fiscal years ended May 31, 2012, 2011 and 2010, respectively. The following table summarizes the information related to stock options outstanding at May 31, 2012:
|  |  | Outstanding Options |  | Exercisable Options
Range of Exercise Prices | Number Outstanding |  | Average Remaining Option Life |  | Weighted Average Exercise Price |  | Number Exercisable |  | Weighted Average Exercise Price
$ 20.29 – $ 31.00 | 1,725,722 |  | 7.50 |  | $ | 26.22 |  |  | 176,768 |  |  | $ | 26.97 |
31.01 – 34.27 | 1,279,826 |  | 8.61 |  | 33.99 |  |  | 60,390 |  |  | 33.50 |
34.28 – 39.36 | 2,410,094 |  | 6.77 |  | 37.49 |  |  | 622,774 |  |  | 38.69 |
39.37 – 50.47 | 2,193,475 |  | 2.48 |  | 42.51 |  |  | 1,245,770 |  |  | 42.65 |
$ 20.29 – $ 50.47 | 7,609,117 |  | 6.01 |  | $ | 36.04 |  |  | 2,105,702 |  |  | $ | 39.90 |
At May 31, 2012, the aggregate intrinsic value of stock options outstanding and exercisable was $22.4 million and $2.1 million, respectively. The weighted-average remaining contractual term of stock options exercisable is 2.1 years. Restricted Stock Awards Restricted stock awards consist of Cintas' common stock that is subject to such conditions, restrictions and limitations as the Compensation Committee of the Board of Directors determines to be appropriate. The vesting period is generally three years after the grant date. The recipient of restricted stock awards will have all rights of a shareholder of Cintas, including the right to vote and the right to receive cash dividends, during the vesting period. The information presented in the following table relates to restricted stock awards granted and outstanding under either the 2005 Equity Compensation Plan or under previously adopted plans:
| Shares |  | Weighted Average Grant Price
Outstanding, unvested grants at May 31, 2009 | 981,369 |  |  | $ | 30.29 |
Granted | 597,514 |  |  | 24.63 |
Canceled | (53,278 | ) |  | 27.85 |
Vested | (118,254 | ) |  | 36.57 |
Outstanding, unvested grants at May 31, 2010 | 1,407,351 |  |  | 27.45 |
Granted | 712,721 |  |  | 31.59 |
Canceled | (66,754 | ) |  | 25.54 |
Vested | (135,936 | ) |  | 39.26 |
Outstanding, unvested grants at May 31, 2011 | 1,917,382 |  |  | 28.22 |
Granted | 452,267 |  |  | 35.95 |
Canceled | (188,685 | ) |  | 30.62 |
Vested | (291,968 | ) |  | 27.60 |
Outstanding, unvested grants at May 31, 2012 | 1,888,996 |  |  | $ | 29.93 |
The remaining unrecognized compensation cost related to unvested stock options and restricted stock at May 31, 2012, was $64.4 million. The weighted-average period of time over which this cost will be recognized is 3.3 years.

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_ShareBasedCompensationAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration