TJ Maxx 2009 Annual Report Download - page 83

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date fair value of the award is charged to income ratably over the period during which these awards vest. The fair value of
the awards is determined at date of grant and assumes that performance goals will be achieved. If such goals are not met,
no compensation cost is recognized and any recognized compensation cost is reversed.
A summary of the status of our nonvested performance-based restricted stock and changes during fiscal 2010 is
presented below:
Shares in thousands
Performance
Based
Restricted
Stock
Weighted
Average
Grant Date
Fair Value
Nonvested at beginning of year 442 $28.38
Granted 470 25.91
Vested (252) 26.43
Forfeited (19) 29.53
Nonvested at end of year 641 $27.30
There were 470,000 shares of performance-based restricted stock, with a weighted average grant date fair value of
$25.91, granted in fiscal 2010; 173,000 shares with a weighted average grant date fair value of $33.49 were granted in
fiscal 2009 and 200,000 shares with a weighted average grant date fair value of $28.04 were granted in fiscal 2008. The
fair value of performance-based restricted stock that vested was $6.7 million in fiscal 2010, $5.9 million in fiscal 2009
and $3.9 million in fiscal 2008.
TJX also awards deferred shares to its outside directors under the Stock Incentive Plan. The outside directors are
awarded two annual deferred share awards, each representing shares of TJX common stock valued at $50,000. One
award vests immediately and is payable, with accumulated dividends, in stock at the earlier of separation from service as a
director or change of control. The second award vests based on service as a director until the annual meeting that follows
the award and is payable, with accumulated dividends, in stock at vesting date, unless an irrevocable advance election is
made whereby it is payable at the same time as the first award. As of the end of fiscal 2010, a total of 174,577 deferred
shares were outstanding under the plan.
I. Capital Stock and Earnings Per Share
Capital Stock: In December 2009, we completed a $1 billion stock repurchase program which began in fiscal 2009
and initiated another multi-year $1 billion stock repurchase program approved in September 2009. We repurchased and
retired 27.0 million shares of our common stock at a cost of $949.9 million during fiscal 2010. TJX reflects stock
repurchases in its financial statements on a “settlement” basis. We had cash expenditures under our repurchase programs
of $944.8 million in fiscal 2010, $751.1 million in fiscal 2009 and $940.2 million in fiscal 2008, funded primarily by
cash generated from operations. We repurchased 26.9 million shares in fiscal 2010, 24.3 million shares in fiscal 2009 and
33.0 million shares in fiscal 2008. As of January 30, 2010, on a “trade date” basis, we had repurchased 5.5 million shares
of our common stock at a cost of $205.0 million under the $1 billion stock repurchase program authorized in September
2009. All shares repurchased under our stock repurchase programs have been retired.
In February 2010, TJX’s Board of Directors approved a new stock repurchase program that authorizes the
repurchase of up to an additional $1 billion of TJX common stock from time to time.
TJX has five million shares of authorized but unissued preferred stock, $1 par value.
F-20