TJ Maxx 2009 Annual Report Download - page 84

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Earnings Per Share: The following schedule presents the calculation of basic and diluted earnings per share for
income from continuing operations:
Amounts in thousands
except per share amounts
January 30,
2010
January 31,
2009
January 26,
2008
(53 weeks)
Basic earnings per share:
Income from continuing operations $1,213,572 $914,886 $782,432
Weighted average common stock outstanding for basic earnings per share
calculation 417,796 419,076 443,050
Basic earnings per share $ 2.90 $ 2.18 $ 1.77
Diluted earnings per share:
Income from continuing operations $1,213,572 $914,886 $782,432
Add back: Interest expense on zero coupon convertible subordinated notes,
net of income taxes 1,073 4,653 4,716
Income from continuing operations used for diluted earnings per share calculation $1,214,645 $919,539 $787,148
Weighted average common stock outstanding for basic earnings per share
calculation 417,796 419,076 443,050
Assumed conversion/exercise of:
Convertible subordinated notes 3,901 16,434 16,905
Stock options and awards 5,922 6,745 8,091
Weighted average common stock outstanding for diluted earnings per share
calculation 427,619 442,255 468,046
Diluted earnings per share $ 2.84 $ 2.08 $ 1.68
In April 2009, TJX called for the redemption of its zero coupon convertible subordinated notes. There were 462,057
of such notes with a carrying value of $365.1 million that were converted into 15.1 million shares of TJX common stock
at a conversion rate of 32.667 shares per note. TJX paid $2.3 million to redeem the remaining 2,886 notes outstanding
that were not converted.
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 related fiscal year’s average
price of TJX’s common stock. Such options are excluded because they would have an antidilutive effect. Excluded were
9.5 million options at January 30, 2010, 5.2 million at January 31, 2009 and 5.7 million at January 26, 2008.
J. Accumulated Other Comprehensive Income
Cumulative foreign currency translation adjustments included in shareholders’ equity amounted to a loss of
$76.3 million, net of related tax effect of $21.6 million, as of January 30, 2010; a loss of $152.9 million, net of related tax
effect of $2.6 million, as of January 31, 2009; and a gain of $17.8 million, net of related tax effect of $23.7 million, as of
January 26, 2008. Cumulative gains and losses on derivatives that hedged our net investment in foreign operations and
deferred gains and losses on cash flow hedges that have been recorded in accumulated other comprehensive income
amounted to a gain of $27.3 million, net of related tax effects of $18.2 million at both January 30, 2010 and January 31,
2009, and a loss of $42.1 million, net of related tax effects of $28.1 million at January 26, 2008.
In accordance with U.S. GAAP, TJX is required to recognize the funded status of its post retirement benefit plans
which are discussed in Note L. Cumulative loss adjustments included in accumulated other comprehensive income was
$85.2 million, net of related tax effects of $56.8 million at January 30, 2010, $92.2 million, net of related tax effects of
$61.5 million at January 31, 2009, and $4.4 million, net of related tax effects of $3.7 million at January 26, 2008.
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