TJ Maxx 2004 Annual Report Download - page 43

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Financing activities:
Cash flows from financing activities resulted in net cash outflows of $587.6 million in fiscal 2005, $546.8 million in fiscal 2004,
and $509.1 million in fiscal 2003. The majority of this outflow relates to our share repurchase program.
We spent $594.6 million in fiscal 2005, $520.7 million in fiscal 2004, and $481.7 million in fiscal 2003 under our stock
repurchase programs. We repurchased 25.1 million shares in fiscal 2005, 26.8 million shares in fiscal 2004, and 25.9 million shares in
fiscal 2003. All shares repurchased were retired with the exception of 75,000 shares purchased in fiscal 2004 and 87,638 shares
purchased in fiscal 2003, which are held in treasury. During May 2004, we completed a $1 billion stock repurchase program and
announced our intention to repurchase an additional $1 billion of common stock. Since the inception of the new $1 billion stock
repurchase program, as of January 29, 2005, we have repurchased 17.7 million shares at a total cost of $406.6 million under this
program. All of these repurchased share numbers reflect the two-for-one stock split distributed in May 2002.
Financing activities also included scheduled principal payments on long-term debt of $5 million in fiscal 2005, and
$15 million in fiscal 2004.
We declared quarterly dividends on our common stock which totaled $.18 per share in fiscal 2005, $.14 per share in fiscal
2004, and $.12 per share in fiscal 2003. Cash payments for dividends on our common stock totaled $83.4 million in fiscal 2005,
$68.9 million in fiscal 2004, and $60.0 million in fiscal 2003. Financing activities also include proceeds of $96.9 million in fiscal
2005, $59.2 million in fiscal 2004, and $33.9 million in fiscal 2003 from the exercise of employee stock options. These stock option
exercises, along with vesting of restricted stock awards, also provided tax benefits of $20.9 million in fiscal 2005, $13.6 million in
fiscal 2004, and $11.8 million in fiscal 2003. These tax benefits are included in cash provided by operating activities.
We traditionally have funded our seasonal merchandise requirements through cash generated from operations, short-term bank
borrowings and the issuance of short-term commercial paper. During fiscal 2003, we entered into a $370 million five-year revolving
credit facility and in fiscal 2005 we renewed our 364-day revolving credit facility for $330 million. Effective March 17, 2005, we
extended the 364-day agreement until July 15, 2005, with substantially all of the terms and conditions of the original facility
remaining unchanged. We anticipate that during the year we will negotiate new agreements increasing the aggregate size of our
revolving credit facilities and extending their maturity. The credit facilities do not require any compensating balances, however, TJX
must maintain certain leverage and fixed charge coverage ratios. Based on our current financial condition, we believe that non-
compliance with these covenants is remote. The revolving credit facilities are used as backup to our commercial paper program. As
of January 29, 2005 there were no outstanding amounts under our credit facilities. The maximum amount of our U.S. short-term
borrowings outstanding was $5 million during fiscal 2005 and $27 million during fiscal 2004. There were no short-term borrowings
during fiscal 2003. The weighted average interest rate on our U.S. short-term borrowings was 2.04% in fiscal 2005 and 1.09% in
fiscal 2004. As of January 29, 2005, we had credit lines totaling C$20 million for our Canadian subsidiary. The maximum amount
outstanding under our Canadian credit line was C$6.8 million during fiscal 2005, C$5.6 million in fiscal 2004, and C$19.2 million
in fiscal 2003. The funding requirements of our Canadian operations were largely provided by TJX.
We believe that our current credit facilities are more than adequate to meet our operating needs. See Note C to the
consolidated financial statements for further information regarding our long-term debt and available financing sources.
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