Note D. Capital Stock and Earnings Per Share

Capital Stock: TJX repurchased and retired 22.3 million shares of its common stock at a cost of $1.7 billion during fiscal 2018, 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 $1.6 billion in fiscal 2018, $1.7 billion in fiscal 2017 and $1.8 billion in fiscal 2016, and repurchased 22.2 million shares in fiscal 2018, 22.3 million shares in fiscal 2017 and 26.6 million shares in fiscal 2016. These expenditures were funded primarily by cash generated from operations.

As of February 3, 2018 TJX had $1.1 billion available under previously announced stock repurchase programs. In February 2018, TJX announced that its Board of Directors had approved the repurchase of an additional $3.0 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 3, 2018		January 28, 2017		January 30, 2016
	(53 weeks)
Basic earnings per share:
Net income	$	2,607,948	$	2,298,234	$	2,277,658
Weighted average common stock outstanding for basic earnings per share calculation		636,827		655,647		673,484
Basic earnings per share	$	4.10	$	3.51	$	3.38
Diluted earnings per share:
Net income	$	2,607,948	$	2,298,234	$	2,277,658
Weighted average common stock outstanding for basic earnings per share calculation		636,827		655,647		673,484
Assumed exercise / vesting of:
Stock options and awards		9,278		8,785		9,767
Weighted average common stock outstanding for diluted earnings per share calculation		646,105		664,432		683,251
Diluted earnings per share	$	4.04	$	3.46	$	3.33

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 12.5 million, 8.1 million and 4.1 million such options excluded at the end of fiscal 2018, fiscal 2017 and fiscal 2016, respectively.