Capital Stock and Earnings Per Share

9 Months Ended

Nov. 01, 2014

Capital Stock and Earnings Per Share

Note D. Capital Stock and Earnings Per Share

TJX repurchased and retired 7.5 million shares of its common stock at a cost of $448.3 million during the quarter ended November 1, 2014, on a “trade date” basis. During the nine months ended November 1, 2014, TJX repurchased and retired 21.5 million shares of its common stock at a cost of $1.2 billion, on a “trade date” basis. TJX reflects stock repurchases in its financial statements on a “settlement date” or cash basis. TJX had cash expenditures under repurchase programs of $1.2 billion for the nine months ended November 1, 2014 and $998.1 million for the nine months ended November 2, 2013.

In September 2014, TJX completed the $1.5 billion stock repurchase program announced in February 2013 under which TJX purchased 25.5 million shares of common stock.

In February 2014, TJX’s Board of Directors announced a stock repurchase program that authorized the repurchase of up to an additional $2.0 billion of TJX common stock from time to time. Under this program, on a “trade date” basis through November 1, 2014, TJX repurchased 4.6 million shares of common stock at a cost of $278.3 million. At November 1, 2014, $1.7 billion remained available for purchase under this program.

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	November 1, 2014		November 2, 2013
Basic earnings per share
Net income	$	594,957	$	622,655
Weighted average common shares outstanding for basic EPS		690,183		711,595
Basic earnings per share	$	0.86	$	0.88
Diluted earnings per share
Net income	$	594,957	$	622,655
Shares for basic and diluted earnings per share calculations:
Weighted average common shares outstanding for basic EPS		690,183		711,595
Assumed exercise/vesting of:
Stock options and awards		10,822		12,513
Weighted average common shares outstanding for diluted EPS		701,005		724,108
Diluted earnings per share	$	0.85	$	0.86

	Thirty-Nine Weeks Ended
In thousands, except per share data	November 1, 2014		November 2, 2013
Basic earnings per share
Net income	$	1,566,898	$	1,555,104
Weighted average common shares outstanding for basic EPS		695,142		715,657
Basic earnings per share	$	2.25	$	2.17
Diluted earnings per share
Net income	$	1,566,898	$	1,555,104
Shares for basic and diluted earnings per share calculations:
Weighted average common shares outstanding for basic EPS		695,142		715,657
Assumed exercise/vesting of:
Stock options and awards		10,980		12,626
Weighted average common shares outstanding for diluted EPS		706,122		728,283
Diluted earnings per share	$	2.22	$	2.14

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 8.9 million options excluded for the thirteen weeks and thirty-nine weeks ended November 1, 2014. There were 4.7 million options excluded for the thirteen weeks and thirty-nine weeks ended November 2, 2013.