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Capital Stock and Earnings Per Share
 9 Months Ended
Oct. 27, 2012
Capital Stock and Earnings Per Share

Note C. Capital Stock and Earnings Per Share

Capital Stock: On January 5, 2012, TJX announced that its Board of Directors approved a two-for-one stock split of its 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 January 17, 2012. The shares were distributed on February 2, 2012 and resulted in the issuance of 372 million shares of common stock. The balance sheets as of January 28, 2012 and October 29, 2011 have been adjusted to retroactively present the two-for-one stock split. Also, 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, have been adjusted to reflect the split.

 

During the quarter ended October 27, 2012, TJX repurchased and retired 8.9 million shares of its common stock at a cost of $400.0 million. For the nine months ended October 27, 2012, TJX repurchased and retired 22.5 million shares of its common stock at a cost of $949.9 million. TJX reflects stock repurchases in its financial statements on a “settlement” basis. TJX had cash expenditures under its stock repurchase programs of $1,004.4 million for the nine months ended October 27, 2012 and $974.8 million for the nine months ended October 29, 2011. These expenditures were funded primarily by cash generated from operations.

In April 2012, TJX completed the $1 billion stock repurchase program authorized by its Board of Directors in February 2011 under which TJX repurchased 32.3 million shares of common stock.

In February 2012, TJX announced that its Board of Directors approved a stock repurchase program that authorizes the repurchase of up to an additional $2 billion of TJX common stock from time to time. At October 27, 2012, on a “trade” basis, $1,274.7 million remained available for repurchase 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

    October 27,
2012		      October 29,
2011		  

Basic earnings per share

      

Net income

    $ 461,551       $ 406,487   

Weighted average common shares outstanding for basic EPS

      731,575         754,273   

Basic earnings per share

    $ 0.63       $ 0.54   

Diluted earnings per share

      

Net income

    $ 461,551       $ 406,487   

Shares for basic and diluted earnings per share calculations:

      

Weighted average common shares outstanding for basic EPS

      731,575         754,273   

Assumed exercise/vesting of:

      

Stock options and awards

      14,166         11,779   
  

 

 

     

 

 

  

Weighted average common shares outstanding for diluted EPS

      745,741         766,052   
  

 

 

     

 

 

  

Diluted earnings per share

    $ 0.62       $ 0.53   

 

     Thirty-Nine Weeks Ended  

In thousands, except per share data

    October 27,
2012		      October 29,
2011		  

Basic earnings per share

      

Net income

    $ 1,301,843       $ 1,020,776   

Weighted average common shares outstanding for basic EPS

      736,846         764,648   

Basic earnings per share

    $ 1.77       $ 1.33   

Diluted earnings per share

      

Net income

    $ 1,301,843       $ 1,020,776   

Shares for basic and diluted earnings per share calculations:

      

Weighted average common shares outstanding for basic EPS

      736,846         764,648   

Assumed exercise/vesting of:

      

Stock options and awards

      14,188         12,330   
  

 

 

     

 

 

  

Weighted average common shares outstanding for diluted EPS

      751,034         776,978   
  

 

 

     

 

 

  

Diluted earnings per share

    $ 1.73       $ 1.31   

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 4.9 million such options excluded for the thirteen weeks and thirty-nine weeks ended October 27, 2012. There were no such options to exclude for the thirteen weeks ended October 29, 2011. There were 7.8 million such options excluded for the thirty-nine weeks ended October 29, 2011.