Capital Stock and Earnings Per Share

12 Months Ended

Feb. 01, 2020

Capital Stock

TJX repurchased and retired 27.1 million shares of its common stock at a cost of $1.5 billion during fiscal 2020, 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 2020, $2.4 billion in fiscal 2019 and $1.6 billion in fiscal 2018, and repurchased 28.1 million shares in fiscal 2020, 50.8 million shares in fiscal 2019 and 44.4 million shares in fiscal 2018. These expenditures were funded primarily by cash generated from operations.

As of February 1, 2020 TJX had approximately $1.7 billion available under previously announced stock repurchase programs. In February 2020, the Company announced that its Board of Directors had approved, in January 2020, 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. In connection with the actions taken related to the novel coronavirus (“COVID-19”) pandemic as described in Note Q—Subsequent Event, the Company suspended its share repurchase 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 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 1, 2020		February 2, 2019		February 3, 2018
					(53 weeks)
Basic earnings per share:
Net income	$	3,272,193	$	3,059,798	$	2,607,948
Weighted average common stock outstanding for basic earnings per share calculation	1,208,163		1,241,153		1,273,654
Basic earnings per share	$	2.71	$	2.47	$	2.05
Diluted earnings per share:
Net income	$	3,272,193	$	3,059,798	$	2,607,948
Weighted average common stock outstanding for basic earnings per share calculation	1,208,163		1,241,153		1,273,654
Assumed exercise / vesting of:
Stock options and awards	18,356		18,099		18,555
Weighted average common stock outstanding for diluted earnings per share calculation	1,226,519		1,259,252		1,292,209
Diluted earnings per share	$	2.67	$	2.43	$	2.02
Cash dividends declared per share	$	0.92	$	0.78	$	0.63

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 11.8 million, 6.1 million and 24.9 million such options excluded at the end of fiscal 2020, fiscal 2019 and fiscal 2018, respectively.