Capital Stock and Earnings Per Share

12 Months Ended

Jan. 31, 2015

Capital Stock and Earnings Per Share

Note E.    Capital Stock and Earnings Per Share

Capital Stock: TJX repurchased and retired 27.7 million shares of its common stock at a cost of $1.7 billion during fiscal 2015, 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 $1.7 billion in fiscal 2015, $1.5 billion in fiscal 2014 and $1.3 billion in fiscal 2013 and repurchased 27.6 million shares in fiscal 2015, 27.3 million shares in fiscal 2014 and 32.0 million shares in fiscal 2013. These expenditures were funded primarily by cash generated from operations. In April 2012, TJX completed the $1 billion stock repurchase program announced in February 2011, in October 2013 TJX completed the $2 billion stock repurchase program announced in February 2012, and in September 2014, TJX completed the $1.5 billion stock repurchase program announced in February 2013. In February 2014, TJX’s Board of Directors announced a stock repurchase program that authorizes 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 January 31, 2015, TJX repurchased 10.8 million shares of common stock at a cost of $685.8 million. At January 31, 2015, $1.3 billion remained available for purchase under this program.

In February 2015, TJX’s Board of Directors announced another stock repurchase program that authorized the repurchase of up to an additional $2 billion of TJX common stock from time to time.

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 for income from continuing operations:

	Fiscal Year Ended
Amounts in thousands except per share amounts	January 31, 2015		February 1, 2014		February 2, 2013
	(53 weeks)
Basic earnings per share:
Net income	$	2,215,128	$	2,137,396	$	1,906,687
Weighted average common stock outstanding for basic earnings per share calculation		692,691		713,470		733,588
Basic earnings per share	$	3.20	$	3.00	$	2.60
Diluted earnings per share:
Net income	$	2,215,128	$	2,137,396	$	1,906,687
Weighted average common stock outstanding for basic earnings per share calculation		692,691		713,470		733,588
Assumed exercise / vesting of:
Stock options and awards		10,854		12,906		13,967
Weighted average common stock outstanding for diluted earnings per share calculation		703,545		726,376		747,555
Diluted earnings per share	$	3.15	$	2.94	$	2.55

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 8.8 million, 4.7 million and 4.9 million such options excluded at the end of fiscal 2015, fiscal 2014 and fiscal 2013, respectively.