Capital Stock and Earnings Per Share

Capital Stock

In fiscal 2019, we completed a two-for-one stock split of the Company’s common stock in the form of a stock dividend. One additional share was paid for each share held by holders of record as of the close of business on October 30, 2018. The shares were distributed on November 6, 2018 and resulted in the issuance of 617 million shares of common stock. In connection with our stock split, the shareholders approved an increase in the number of authorized shares of common stock of 0.6 billion to 1.8 billion shares. As a result, the Consolidated Balance Sheets and the Consolidated Statements of Shareholders' Equity have been adjusted to retroactively present the two-for-one stock split. In addition, all historical per share amounts and references to common stock activity, as well as basic and diluted share amounts utilized in the calculation of earnings per share in these notes to the consolidated financial statements, have been adjusted to reflect this stock split.

TJX repurchased and retired 51.8 million shares of its common stock at a cost of $2.5 billion during fiscal 2019, 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 $2.4 billion in fiscal 2019, $1.6 billion in fiscal 2018 and $1.7 billion in fiscal 2017, and repurchased 50.8 million shares in fiscal 2019, 44.4 million shares in fiscal 2018 and 44.6 million shares in fiscal 2017. These expenditures were funded primarily by cash generated from operations.

As of February 2, 2019 TJX had approximately $1.7 billion available under previously announced stock repurchase programs. In February 2019, our Board of Directors approved the repurchase of an additional $1.5 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 table presents the calculation of basic and diluted earnings per share for net income:



	Fiscal Year Ended
Amounts in thousands except per share amounts	February 2, 2019		February 3, 2018		January 28, 2017
			(53 weeks)
Basic earnings per share:
Net income	$	3,059,798	$	2,607,948	$	2,298,234
Weighted average common stock outstanding for basic earnings per share calculation	1,241,153		1,273,654		1,311,294
Basic earnings per share	$	2.47	$	2.05	$	1.75
Diluted earnings per share:
Net income	$	3,059,798	$	2,607,948	$	2,298,234
Weighted average common stock outstanding for basic earnings per share calculation	1,241,153		1,273,654		1,311,294
Assumed exercise / vesting of:
Stock options and awards	18,099		18,555		17,570
Weighted average common stock outstanding for diluted earnings per share calculation	1,259,252		1,292,209		1,328,864
Diluted earnings per share	$	2.43	$	2.02	$	1.73
Cash dividends declared per share	$	0.78	$	0.63	$	0.52

The weighted average common shares for the diluted earnings per share calculation exclude the impact of outstanding stock options if the assumed proceeds per share of the option is in excess of the average price of TJX’s common stock for the related fiscal periods. Such options are excluded because they would have an antidilutive effect. There were 6.1 million, 24.9 million and 16.3 million such options excluded at the end of fiscal 2019, fiscal 2018 and fiscal 2017, respectively.