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Capital Stock and Earnings Per Share
 6 Months Ended
Aug. 01, 2015
Capital Stock and Earnings Per Share

Note D. Capital Stock and Earnings Per Share

Capital Stock: TJX repurchased and retired 6.6 million shares of its common stock at a cost of $440.0 million during the quarter ended August 1, 2015, on a “trade date” basis. During the six months ended August 1, 2015, TJX repurchased and retired 12.7 million shares of its common stock at a cost of $855.0 million, 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 $851.1 million for the six months ended August 1, 2015 and $799.8 million for the six months ended August 2, 2014.

In February 2014, TJX’s Board of Directors announced a stock repurchase program that authorized 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 August 1, 2015, TJX repurchased 23.5 million shares of common stock at a cost of $1.5 billion. At August 1, 2015, $459.2 million 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 $2.0 billion of TJX common stock from time to time, all of which remained available at August 1, 2015.

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

    August 1,
2015		      August 2,
2014		  

Basic earnings per share

      

Net income

    $ 549,335       $ 517,624   

Weighted average common shares outstanding for basic EPS

      676,082         694,217   

Basic earnings per share

    $ 0.81       $ 0.75   

Diluted earnings per share

      

Net income

    $ 549,335       $ 517,624   

Shares for basic and diluted earnings per share calculations:

      

Weighted average common shares outstanding for basic EPS

      676,082         694,217   

Assumed exercise/vesting of:

      

Stock options and awards

      9,240         10,983   
  

 

 

     

 

 

  

Weighted average common shares outstanding for diluted EPS

      685,322         705,200   
  

 

 

     

 

 

  

Diluted earnings per share

    $ 0.80       $ 0.73   

 

     Twenty-Six Weeks Ended  

In thousands, except per share data

    August 1,
2015		      August 2,
2014		  

Basic earnings per share

      

Net income

    $ 1,023,936       $ 971,941   

Weighted average common shares outstanding for basic EPS

      678,735         697,622   

Basic earnings per share

    $ 1.51       $ 1.39   

Diluted earnings per share

      

Net income

    $ 1,023,936       $ 971,941   

Shares for basic and diluted earnings per share calculations:

      

Weighted average common shares outstanding for basic EPS

      678,735         697,622   

Assumed exercise/vesting of:

      

Stock options and awards

      9,844         11,598   
  

 

 

     

 

 

  

Weighted average common shares outstanding for diluted EPS

      688,579         709,220   
  

 

 

     

 

 

  

Diluted earnings per share

    $ 1.49       $ 1.37   

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 no such options excluded for either the thirteen weeks or the twenty-six weeks ended August 1, 2015. There were 4.6 million such options excluded for the thirteen weeks ended August 2, 2014 and 4.2 million such options excluded for the twenty-six weeks ended August 2, 2014.