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Capital Stock and Earnings Per Share
 12 Months Ended
Feb. 02, 2013
Capital Stock and Earnings Per Share

Note D.    Capital Stock and Earnings Per Share

Capital Stock: In February 2012, TJX effected a two-for-one stock split in the form of a stock dividend. All share and per share information has been retroactively adjusted to reflect the stock split (see Note A).

TJX repurchased and retired 30.6 million shares of its common stock at a cost of $1.3 billion during fiscal 2013. TJX reflects stock repurchases in its financial statements on a “settlement” basis. TJX had cash expenditures under repurchase programs of $1.3 billion in fiscal 2013, $1.3 billion in fiscal 2012 and $1.2 billion in fiscal 2011 and repurchased 32.0 million shares in fiscal 2013, 48.4 million shares in fiscal 2012 and 54.9 million shares in fiscal 2011. These expenditures were funded primarily by cash generated from operations. In April 2012, TJX completed the $1 billion stock repurchase program authorized in February 2011. In February 2012, TJX’s Board of Directors approved another stock repurchase program that authorizes the repurchase of up to an additional $2 billion of TJX common stock from time to time.

Under the repurchase program authorized in February 2012, on a “trade date” basis, TJX repurchased 24.7 million shares of common stock at a cost of $1,075.3 million during fiscal 2013 and $924.7 million remained available at February 2, 2013 under this program.

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

In the first quarter of fiscal 2014, TJX’s Board of Directors approved a new stock repurchase program that authorizes the repurchase of up to an additional $1.5 billion of TJX common stock from time to time.

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   

February 2,

2013

     

January 28,

2012

     

January 29,

2011

  
     (53 weeks)                

Basic earnings per share:

         

Income from continuing operations

    $ 1,906,687       $ 1,496,090       $ 1,339,530   

Weighted average common stock outstanding for basic earnings per share calculation

      733,588         761,109         800,291   

Basic earnings per share

    $ 2.60       $ 1.97       $ 1.67   

Diluted earnings per share:

         

Income from continuing operations

    $ 1,906,687       $ 1,496,090       $ 1,339,530   

Weighted average common stock outstanding for basic earnings per share calculation

      733,588         761,109         800,291   

Assumed exercise / vesting of:

         

Stock options and awards

      13,967         12,663         12,535   

Weighted average common stock outstanding for diluted earnings per share calculation

      747,555         773,772         812,826   

Diluted earnings per share

    $ 2.55       $ 1.93       $ 1.65   

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 at the end of fiscal 2013. There were no such options excluded at the end of fiscal 2012 or 2011.