TJ Maxx 2009 Annual Report Download - page 49

Investing Activities:
Our cash flows for investing activities include capital expenditures for the last three fiscal years as set forth in the table
below:
In millions 2010 2009 2008
Fiscal Year Ended January
New stores $127.8 $147.6 $120.7
Store renovations and improvements 206.8 264.3 269.8
Office and distribution centers 94.7 171.0 136.5
Capital expenditures $429.3 $582.9 $527.0
We expect that capital expenditures will approximate $750 million for fiscal 2011, which we expect to fund through
internally generated funds. This includes $216 million for new stores, $289 million for store renovations, expansions and
improvements and $245 million for our office and distribution centers. The planned increase in capital expenditures is
attributable to investment in systems, distribution and other infrastructure to support growth as well as an increase in
planned store openings, and increased spending on renovations and improvements to existing stores.
Investing activities for fiscal 2010 include the purchase and sale of some short-term investments by TJX Canada, as
excess cash was invested in funds with initial maturities greater than three months to enhance investment returns.
Investing activities for fiscal 2009 and 2008 also include cash flows associated with our net investment hedges. During
fiscal 2009, we suspended our policy of hedging the net investment in our foreign subsidiaries and settled such hedges
during the fourth quarter. The net cash received on net investment hedges during fiscal 2009 amounted to $14.4 million
versus net cash payments of $13.7 million in fiscal 2008.
Financing Activities:
Cash flows from financing activities resulted in net cash outflows of $584 million in fiscal 2010, $769 million in
fiscal 2009 and $953 million in fiscal 2008. The majority of this outflow relates to our share repurchase programs.
Cash flows from financing activities for fiscal 2010 include the net proceeds of $774 million from two debt
offerings. On April 7, 2009, we issued $375 million aggregate principal amount of 6.95% ten-year notes. Related to this
transaction, TJX called for the redemption of its zero coupon convertible subordinated notes, virtually all of which were
converted into 15.1 million shares of common stock. We used the proceeds of the 6.95% notes to repurchase additional
shares of common stock under our stock repurchase program. On July 23, 2009, we issued $400 million aggregate
principal amount of 4.20% six-year notes. We used a portion of the proceeds of this offering to refinance our
C$235 million term credit facility on August 10, 2009, prior to its scheduled maturity, and used the remainder, together
with funds from operations, to pay our 7.45% notes on their scheduled maturity of December 15, 2009.
We spent $950 million in fiscal 2010, $741 million in fiscal 2009 and $950 million in fiscal 2008 under our stock
repurchase programs. We repurchased 27.0 million shares in fiscal 2010, 24.0 million shares in fiscal 2009 and
33.3 million shares in fiscal 2008. All shares repurchased were retired. We record the repurchase of our stock on a cash
basis, and the amounts reflected in the financial statements may vary from the above due to the timing of the settlement
of our repurchases. During fiscal 2010, we completed the $1 billion stock repurchase program approved by the Board of
Directors in fiscal 2009 and initiated another multi-year repurchase program that had been approved by the Board in
September 2009. As of January 30, 2010, $795 million remained available for purchase under the program authorized in
September 2009. In February 2010, the Board authorized an additional $1 billion stock repurchase program. We
currently plan to repurchase up to approximately $900 million to $1 billion of our stock in fiscal 2011. We determine
the timing and amount of repurchases and execution of Rule 10b5-1 plans from time to time based on our assessment of
various factors including excess cash flow, liquidity, market conditions, the economic environment and prospects for the
business and other factors, and the timing and amount of these purchases may change.
We declared quarterly dividends on our common stock which totaled $0.48 per share in fiscal 2010, $0.44 per share
in fiscal 2009 and $0.36 per share in fiscal 2008. Cash payments for dividends on our common stock totaled
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