Capital Stock and Earnings (Loss) Per Share

6 Months Ended

Jul. 31, 2021

Equity [Abstract]

Capital Stock and Earnings (Loss) Per Share

Capital Stock and Earnings (Loss) Per Share

Capital Stock

During the second quarter of fiscal 2022, the Company lifted the temporary suspension of its previously authorized stock repurchase programs. TJX repurchased and retired 4.6 million shares of its common stock at a cost of approximately $300 million during the quarter and six months ended July 31, 2021, on a “trade date” basis. Prior to the suspension of the Company’s share repurchase program, during the first quarter of fiscal 2021, TJX repurchased and retired 3.2 million shares of its common stock at a cost of $190 million on a “trade date” basis, and no shares were repurchased during the second quarter of fiscal 2021 through the first quarter of fiscal 2022. TJX reflects stock repurchases in its financial statements on a “settlement date” or cash basis. TJX had cash expenditures under repurchase programs of $297 million for the six months ended July 31, 2021 and $201 million for the six months ended August 1, 2020. These expenditures were funded by cash generated from operations.

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. Also, in February 2019, TJX announced that its Board of Directors had approved a stock repurchase program that authorized the repurchase of up to $1.5 billion of TJX common stock from time to time.

As of July 31, 2021, TJX had approximately $2.7 billion available under these previously announced stock repurchase programs.

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

Earnings (Loss) Per Share

The following table presents the calculation of basic and diluted earnings (loss) per share for net income (loss):

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
Amounts in thousands, expect per share amounts	July 31, 2021		August 1, 2020		July 31, 2021		August 1, 2020
Basic earnings (loss) per share:
Net income (loss)	$	785,681	$	(214,220)	$	1,319,611	$	(1,101,709)
Weighted average common shares outstanding for basic earnings (loss) per share calculation	1,205,054		1,198,634		1,205,247		1,198,222
Basic earnings (loss) per share	$	0.65	$	(0.18)	$	1.09	$	(0.92)
Diluted earnings (loss) per share:
Net income (loss)	$	785,681	$	(214,220)	$	1,319,611	$	(1,101,709)
Weighted average common shares outstanding for basic earnings (loss) per share calculations	1,205,054		1,198,634		1,205,247		1,198,222
Assumed exercise / vesting of stock options and awards	15,561		—		15,765		—
Weighted average common shares outstanding for diluted earnings (loss) per share calculation	1,220,615		1,198,634		1,221,012		1,198,222
Diluted earnings (loss) per share	$	0.64	$	(0.18)	$	1.08	$	(0.92)
Cash dividends declared per share	$	0.26	$	—	$	0.52	$	—

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 average price of TJX’s common stock for the related fiscal period. Such options are excluded because they would have an antidilutive effect. There were no such options excluded for the thirteen weeks and twenty-six weeks ended July 31, 2021. For the thirteen weeks and twenty-six weeks ended August 1, 2020, as a result of the net losses, all options were antidilutive and therefore have been excluded from the calculation.

The Board of Directors declared a quarterly dividend of $0.26 per share in the second quarter of fiscal 2022.