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 6.7 million shares of its common stock at a cost of $350.0 million during the quarter ended May 4, 2019, on a “trade date” basis. TJX reflects stock repurchases in its Consolidated Financial Statements on a “settlement date” or cash basis. TJX had cash expenditures under repurchase programs of $397.3 million for the three months ended May 4, 2019, and $395.4 million for the three months ended May 5, 2018. These expenditures were funded by cash generated from current and prior period operations.

In February 2019, TJX announced that its Board of Directors had approved an additional stock repurchase program that authorized the repurchase of up to $1.5 billion of TJX common stock from time to time.

In February 2018, our Board of Directors approved the repurchase of an additional $3.0 billion of TJX common stock from time to time. Under this program, on a “trade date” basis through May 4, 2019, TJX repurchased 33.1 million shares of common stock at a cost of $1.7 billion.

As of May 4, 2019, TJX had approximately $2.8 billion available under these previously announced stock repurchase programs.

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

Earnings Per Share

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



	Thirteen Weeks Ended
In thousands, except per share amounts	May 4, 2019		May 5, 2018
Basic earnings per share
Net income	$	700,178	$	716,381
Weighted average common shares outstanding for basic EPS	1,214,531		1,253,224
Basic earnings per share	$	0.58	$	0.57
Diluted earnings per share
Net income	$	700,178	$	716,381
Shares for basic and diluted earnings per share calculations:
Weighted average common shares outstanding for basic EPS	1,214,531		1,253,224
Assumed exercise/vesting of:
Stock options and awards	18,876		15,648
Weighted average common shares outstanding for diluted EPS	1,233,407		1,268,872
Diluted earnings per share	$	0.57	$	0.56
Cash dividends declared per share	$	0.230	$	0.195

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 6.0 million such options excluded for the thirteen weeks ended May 4, 2019. There were 17.1 million such options excluded for the thirteen weeks ended May 5, 2018.