Note D. Capital Stock and Earnings Per Share

Capital Stock

TJX repurchased and retired 4.9 million shares of its common stock at a cost of $400.0 million during the quarter ended May 5, 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 $395.4 million for the three months ended May 5, 2018, and $350.0 million for the three months ended April 29, 2017. These expenditures were funded by cash generated from operations.

In February 2018, TJX announced that its Board of Directors had approved an additional stock repurchase program that authorized the repurchase of up to $3.0 billion of TJX common stock from time to time, all of which remained available at May 5, 2018.

In February 2017, TJX announced that its Board of Directors had approved an additional stock repurchase program that authorized the repurchase of up to $1.0 billion of TJX common stock from time to time. Under this program, on a “trade date” basis through May 5, 2018, TJX repurchased 3.2 million shares of common stock at a cost of $264.2 million.

As of May 5, 2018, TJX had $3.7 billion available under previously announced stock repurchase programs.

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

Earnings Per Share

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


	Thirteen Weeks Ended
In thousands, except per share data	May 5, 2018		April 29, 2017
Basic earnings per share
Net income	$	716,381	$	536,279
Weighted average common shares outstanding for basic EPS		626,612		644,425
Basic earnings per share	$	1.14	$	0.83
Diluted earnings per share
Net income	$	716,381	$	536,279
Shares for basic and diluted earnings per share calculations:
Weighted average common shares outstanding for basic EPS		626,612		644,425
Assumed exercise/vesting of:
Stock options and awards		7,824		10,374

Weighted average common shares outstanding for diluted EPS		634,436		654,799

Diluted earnings per share	$	1.13	$	0.82

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 8.6 million such options excluded for the thirteen weeks ended May 5, 2018. There were 8.0 million such options excluded for the thirteen weeks ended April 29, 2017.