Capital Stock and Earnings Per Share

3 Months Ended

May 04, 2013

Capital Stock and Earnings Per Share

Note C. Capital Stock and Earnings Per Share

Capital Stock: During the quarter ended May 4, 2013, TJX repurchased and retired 6.5 million shares of its common stock at a cost of $300.0 million. TJX reflects stock repurchases in its financial statements on a “settlement” basis. TJX had cash expenditures under its stock repurchase programs of $302.6 million for the thirteen weeks ended May 4, 2013 and $297.3 million for the thirteen weeks ended April 28, 2012. These expenditures were funded primarily by cash generated from operations. In February 2012, TJX’s Board of Directors approved a stock repurchase program that authorized the repurchase of up to $2 billion of TJX common stock from time to time. As of May 4, 2013, $624.7 million remained available for repurchase under this program. In the first quarter of fiscal 2014, TJX’s Board of Directors approved a new stock repurchase program that authorizes the repurchase of up to an additional $1.5 billion of TJX common stock from time to time, all of which remains available for repurchase at May 4, 2013.

All shares repurchased under the stock repurchase programs have been retired.

TJX has five million shares of authorized but unissued preferred stock, $1 par value.

Earnings per share: The following schedule presents the calculation of basic and diluted earnings per share (“EPS”) for net income:

	Thirteen Weeks Ended
In thousands, except per share data	May 4, 2013		April 28, 2012
Basic earnings per share
Net income	$	452,890	$	419,200
Weighted average common shares outstanding for basic EPS		719,528		742,233
Basic earnings per share	$	0.63	$	0.56
Diluted earnings per share
Net income	$	452,890	$	419,200
Shares for basic and diluted earnings per share calculations:
Weighted average common shares outstanding for basic EPS		719,528		742,233
Assumed exercise/vesting of:
Stock options and awards		13,027		13,783
Weighted average common shares outstanding for diluted EPS		732,555		756,016
Diluted earnings per share	$	0.62	$	0.55

The weighted average common shares for the diluted earnings per share calculation excludes the impact of outstanding stock options if the assumed proceeds per share of the option is in excess of the related fiscal period’s average price of TJX’s common stock. Such options are excluded because they would have an antidilutive effect. There were 4.8 million such options excluded for the thirteen weeks ended May 4, 2013. There were no such options excluded for the thirteen weeks ended April 28, 2012.