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Press release from Business Wire

The TJX Companies, Inc. Reports Another Year of Double-Digit EPS Growth; Announces New Stock Repurchase Program; Plans 21% Increase in Dividend

Wednesday, February 22, 2012

The TJX Companies, Inc. Reports Another Year of Double-Digit EPS Growth; Announces New Stock Repurchase Program; Plans 21% Increase in Dividend08:39 EST Wednesday, February 22, 2012 FRAMINGHAM, Mass. (Business Wire) -- The TJX Companies, Inc. (NYSE: TJX), the leading off-price retailer of apparel and home fashions in the U.S. and worldwide, today announced sales and earnings results for the fiscal year and fourth quarter ended January 28, 2012. All earnings per share figures reflect the Company's recent two-for-one stock split. Net sales for the 52-week fiscal year were $23.2 billion, a 6% increase over last year. Consolidated comparable store sales for the year increased 4% over the prior year's 4% increase. Income from continuing operations for the 52-week fiscal year was $1.5 billion, and diluted earnings per share from continuing operations were $1.93. A number of items (detailed under “Items Impacting Comparability” below) impacted the comparability of earnings per share for both periods. Excluding these items, adjusted diluted earnings per share from continuing operations for the fiscal year were $1.99, a 14% increase over the adjusted $1.75 in the prior year. For the 13-week fourth quarter ended January 28, 2012, net sales were $6.7 billion, a 6% increase over the prior year. Consolidated comparable store sales for the quarter increased 7% over the prior year. Income from continuing operations for the fourth quarter was $475 million, and diluted earnings per share from continuing operations were $.62. An item (detailed under “Items Impacting Comparability” below) impacted the comparability of earnings per share. Excluding this item, the $.62 in diluted earnings per share for the fourth quarter represents a 17% increase over the adjusted $.53 in the prior year. Carol Meyrowitz, Chief Executive Officer of The TJX Companies, Inc., stated, “I am extremely proud of our performance in 2011, which marked another great year for TJX and underscores the power of our flexible business model to perform in almost any kind of economic environment. Consolidated comps increased 4% on top of 4% and 6% increases in the two prior years, respectively, and earnings grew substantially over significant growth in each of the past two years. Above all, we delivered extraordinary values on ever-changing assortments of current fashions and brands to consumers, and ended the year with significant gains in customer traffic. We enter a new fiscal year with considerable momentum in our business and are off to a very strong start in 2012. With favorable weather patterns in February, comp store sales are trending toward a 7% increase for the month. We believe our values separate us from other retailers and will continue to draw more customers to our stores. Inventories are lean as we begin the year, which positions us very well to flow fresh spring merchandise to our stores. Importantly, we are very proud of our ability to simultaneously make significant investments in the future growth of our business while continuing to deliver on our sales and earnings expectations. I am optimistic about our near-term abilities and remain very confident in our long-term vision to grow TJX to a $40 billion company and beyond.” Increase in Shareholder Distributions The Company also announced today its plans to repurchase approximately $1.2 billion to $1.3 billion of TJX stock during the Fiscal Year ending February 2, 2013. With approximately $225 million remaining at Fiscal 2012 year end under the Company's existing stock repurchase program, the Company's Board of Directors approved a new stock repurchase program that authorizes the repurchase of up to an additional $2 billion of TJX common stock from time to time. The new authorization would represent approximately 8% of the Company's outstanding shares at current prices. The new stock repurchase program marks the 13th program approved by the Board since 1997. Over this period, the Company has spent approximately $10.0 billion on the repurchase of TJX stock. In Fiscal 2012, the Company spent a total of $1.4 billion to repurchase TJX stock, retiring 49.7 million shares on a post-split basis. During the fourth quarter, the Company spent a total of $402 million to repurchase TJX stock, retiring 12.5 million shares on a post-split basis. Under the Company's repurchase plans, share repurchases may be made from time to time in market or private transactions and may include derivative transactions. The repurchase program announced today has no time limit and may be suspended or discontinued at any time. The Company also intends to increase the regular quarterly dividend on its common stock to be declared in April 2012 and payable in May 2012 to $.115 per share, subject to the approval of the Company's Board of Directors. This increase would represent a 21% increase in the current per share dividend and mark the 16th consecutive year that the Company has raised the dividend. Over this period of time, the Company's dividend has grown at a compound annual rate of 23%. Meyrowitz commented, “Our business continues to deliver superior financial returns for shareholders and generates enormous amounts of excess cash. In Fiscal 2013, we plan to invest to support our growth, including investments in our supply chain and infrastructure, new stores, store remodels, and building an e-commerce business. Simultaneously, we plan to continue our large share buyback program, with $1.2 billion to $1.3 billion of repurchases planned for Fiscal 2013, and to significantly increase our dividend. The new stock repurchase authorization, the planned dividend increase, and the two-for-one stock split earlier this year all underscore our confidence in our ability to continue to deliver significant increases in sales, earnings, and cash flow, and generate superior financial returns.” Sales by Business Segment The Company's comparable store sales and net sales by division for the full year were as follows:             Full YearFull YearComparable Store Sales1     Net Sales ($ in millions)2,3           FY2012   FY2011     FY2012   FY2011 In the U.S.:                         Marmaxx4         +5%   +4%     $15,368   $14,092 HomeGoods         +6%   +6%     $2,244   $1,958 International:                         TJX Canada         -1%   +4%     $2,680   $2,510 TJX Europe         +2%   -3%     $2,891   $2,493                           TJX5         +4%   +4%     $23,191   $21,942 1Comparable store sales outside the U.S. calculated on a constant currency basis, which removes the effect of changes in currency exchange rates. 2Sales in Canada and Europe were impacted by foreign currency exchange rates. See below. 3Figures may not foot due to rounding. 4Combination of T.J. Maxx and Marshalls. 5 Includes the former A.J. Wright segment, which had net sales of $9 million in FY12 and comparable store sales of +6% and net sales of $888 million in FY11. The Company's comparable store sales and net sales by division, in the fourth quarter, were as follows:             Fourth QuarterFourth QuarterComparable Store Sales1     Net Sales ($ in millions)2,3           FY2012   FY2011     FY2012   FY2011 In the U.S.:                         Marmaxx4         +6%   +3%     $4,398   $4,002 HomeGoods         +10%   +2%     $674   $565 International:                         TJX Canada         +3%   +4%     $745   $707 TJX Europe         +10%   -6%     $892   $778                           TJX5         +7%   +2%     $6,710   $6,332 1Comparable store sales outside the U.S. calculated on a constant currency basis, which removes the effect of changes in currency exchange rates. 2Sales in Canada and Europe were impacted by foreign currency exchange rates. See below. 3Figures may not foot due to rounding. 4 Combination of T.J. Maxx and Marshalls. 5 Includes the former A.J. Wright segment, which had comparable store sales of +18% and net sales of $279 million in Q4FY11. Impact of Foreign Currency Exchange Rates Changes in foreign exchange rates affect the translation of sales and earnings of the Company's international businesses into U.S. dollars for financial reporting purposes. In addition, ordinary-course inventory-related hedging instruments are marked to market at the end of each quarter. Changes in currency exchange rates affect the magnitude of these translations and adjustments, and can have a material impact when there is significant volatility in currency exchange rates. The movement in foreign currency exchange rates had a 1 percentage point favorable impact on consolidated net sales growth for the full Fiscal 2012 year. The movement in foreign currency exchange rates had no impact on consolidated net sales growth in the Fiscal 2012 fourth quarter. The impact of foreign currency exchange rates on earnings per share is discussed below under “Items Impacting Comparability.” A table detailing the impact of foreign currency on TJX pretax earnings and margins, as well as those of its international businesses, can be found in the Investor Information section of the Company's website, www.tjx.com. Items Impacting Comparability Certain items that impact the comparability of the full year and fourth quarter to prior year are detailed in the tables below:         Full Year           FY2012     FY2011 Reported EPS from continuing operations $1.93     $1.65 Impact of A.J. Wright Closing$.04$.11Store Conversion/Grand Re-Openings Costs$.02-Impact of Computer Intrusion(s) Provision Adjustment-$(.01)Adjusted EPS from continuing operations$1.99$1.75   The Fiscal 2012 and 2011 costs associated with closing A.J. Wright stores, distribution centers and home office, and the sales, operating expenses and operating losses associated with those closures, which are recorded in the A.J. Wright segment, had a significant effect on the comparability of the full Fiscal 2012 year to the prior year. Additionally, the Fiscal 2012 first quarter costs related to the conversion and grand re-opening of certain former A.J. Wright stores to T.J. Maxx, Marshalls and HomeGoods banners, which are recorded in the Marmaxx and HomeGoods segments, also impacted year-over-year comparability of Fiscal 2012 to the prior year. On a reported basis, fully diluted earnings per share from continuing operations for the full Fiscal 2012 year were $1.93 compared to $1.65 last year. Excluding the items above, adjusted diluted earnings per share for the full year were $1.99, a 14% increase over last year's adjusted $1.75. Foreign currency exchange rates also impacted the comparability of full year earnings per share. The overall net impact of foreign currency exchange rates increased full year earnings per share by $.01 compared with a $.01 per share negative impact last year.         Fourth Quarter           FY2012     FY2011 Reported EPS from continuing operations $.62     $.42 Impact of A.J. Wright Closing-.11Adjusted EPS from continuing operations$.62$.53   On a reported basis, diluted earnings per share from continuing operations for the fourth quarter of Fiscal 2012 were $.62 compared to $.42 last year. Excluding the Fiscal 2011 item above, diluted earnings per share for the fourth quarter of Fiscal 2012 represent a 17% increase over last year's adjusted $.53. Foreign currency exchange rates also impacted the comparability of fourth quarter earnings per share. The overall net impact of foreign currency exchange rates negatively impacted fourth quarter earnings per share by $.01 compared with no impact in the prior year. To provide investors information to assist them in assessing the Company's ongoing operations on a comparable basis, the Company is providing financial measures that exclude the items detailed above. Throughout this release, the term “reported” refers to information prepared in accordance with accounting principles generally accepted in the United States (GAAP), while the term “adjusted” refers to non-GAAP financial information adjusted to exclude the impact of these items as applicable. Adjusted financial information, along with reconciliations of this information to financial information prepared under GAAP, is available in the Investor Information section of the Company's website, www.tjx.com. Fourth Quarter Items During the fourth quarter, the Company incurred certain charges and benefits that were not anticipated in its original guidance, which impacted its operating results and were previously discussed in the Company's December and January sales releases. Combined, these items (“fourth quarter items”) reduced earnings per share by $.02 for both the fourth quarter and the full year periods. In addition to impacting earnings per share, these items reduced pretax profit margins by approximately 0.5 percentage point for the fourth quarter and 0.2 percentage point for the full year. Margins On an adjusted basis, the Company's consolidated pretax profit margin from continuing operations for Fiscal 2012 was 10.7%, up 0.1 percentage point over the prior year. The increase was driven by improved gross profit margins, partially offset by selling, general and administrative cost deleverage. On an adjusted basis, the gross profit margin for Fiscal 2012 was 27.4%, 0.3 percentage point above the prior year, driven by buying and occupancy leverage. On an adjusted basis, selling, general and administrative costs as a percent of sales were 16.5%, 0.2 percentage point above the prior year. This increase reflects the 0.2 percentage point impact of the fourth quarter items mentioned above. The Company's consolidated pretax profit margin from continuing operations for the fourth quarter of Fiscal 2012 was 11.3%, up 0.1 percentage point over the prior year's adjusted pretax profit margin. This increase reflects improved gross profit margins and leverage across the majority of selling, general and administrative expense categories, partially offset by the 0.5 percentage point impact of the fourth quarter items, as well as foreign currency exchange rates which had a 0.2 percentage point negative impact on year-over-year comparisons. The gross profit margin for the fourth quarter of Fiscal 2012 was 27.2%, 0.3 percentage point above the prior year's adjusted margin. The improvement was primarily due to buying and occupancy leverage, as well as a slight improvement in merchandise margins. Selling, general and administrative costs as a percent of sales were 15.8% in the fourth quarter, 0.2 percentage point above the prior year's adjusted ratio, with the fourth quarter items negatively impacting comparisons by 0.4 percentage point. Inventory Total inventories as of January 28, 2012, were $3.0 billion, compared with $2.8 billion at the end of the prior fiscal year. Consolidated inventories on a per-store basis, including the distribution centers, at January 28, 2012, were up 3% for the Company's existing businesses, lower than it had anticipated. The Company's store inventories were below prior year levels on a per-store basis. Further, as of Fiscal 2012 year end, its forward inventory purchase commitments were down significantly from last year, and it enters Fiscal 2013 with great liquidity in its inventories and in an excellent position to flow fresh spring merchandise to its stores. Full Year and First Quarter Fiscal 2013 Outlook For the fiscal year ending February 2, 2013, on a GAAP basis, the Company expects fully diluted earnings per share to be in the range of $2.21 to $2.31, compared with $1.93 in earnings per share in Fiscal 2012. This guidance represents an 11% to 16% increase over the prior year's adjusted earnings per share from continuing operations of $1.99 (detailed below). This outlook is based upon estimated consolidated comparable store sales growth of 1% to 2%.         Full Year FY2013E     FY2012           (53 weeks)     (52 weeks) EPS from continuing operations$2.21 - $2.31$1.93Impact of A.J. Wright Closing-$.04Store Conversion/Grand Re-Openings Costs-$.02Adjusted EPS from continuing operations$2.21 - $2.31$1.99   The Company's full-year guidance includes an expected $.07 per share benefit from the 53rd week in the Company's Fiscal 2013 calendar. Excluding this benefit, this guidance represents an 8% to 13% increase over prior year. For the first quarter of Fiscal 2013, on a GAAP basis, the Company expects fully diluted earnings per share to be in the range of $.45 to $.47 compared with $.34 last year. On an adjusted basis, excluding the items below, this guidance represents a 15% to 21% increase over prior year's adjusted earnings per share from continuing operations of $.39. This outlook is based upon estimated consolidated comparable store sales growth of 2% to 4%.         First Quarter           FY2013E     FY2012 EPS from continuing operations$.45-$.47     $.34Impact of A.J. Wright Store Closings-$.04Store Conversion/Grand Re-Openings Costs-$.02Adjusted EPS from continuing operations*$.45 -$.47$.39   *Figures do not foot due to rounding. The Company's earnings guidance for the first quarter and full year Fiscal 2013 assumes that currency exchange rates will remain unchanged from current levels. More detailed information on the effects of the A.J. Wright consolidation including store closings and costs related to converting former A.J. Wright stores to other banners (including grand re-opening costs) on Fiscal 2012 results is available in the Investor Information section of the Company's website, www.tjx.com. Stores by Concept During the fiscal year ended January 28, 2012, the Company increased its store count by a net of 46 stores to end the year with 2,905 stores. The Company increased square footage by 2% over the same period last year.             Store LocationsGross Square Feet*FY2012FY2012       (in millions)           Beginning   End     Beginning   EndIn the U.S.:                         T.J. Maxx         923   983     27.3   28.7 Marshalls         830   884     26.2   27.6 HomeGoods         336   374     8.4   9.3 TJX Canada:                         Winners         215   216     6.3   6.3 HomeSense         82   86     2.0   2.1 Marshalls         -   6     -   0.2 TJX Europe:                         T.K. Maxx         307   332     9.8   10.5 HomeSense         24   24     0.5   0.5                           TJX         2,859**   2,905     84.0**   85.3 *Square feet figures may not foot due to rounding.** Total includes 142 stores, or 3.6 million gross square feet, from former A.J. Wright stores. About The TJX Companies, Inc. The TJX Companies, Inc. is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The Company operates 983 T.J. Maxx, 884 Marshalls, and 374 HomeGoods stores in the United States; 216 Winners, 86 HomeSense, and 6 Marshalls stores in Canada; and 332 T.K. Maxx and 24 HomeSense stores in Europe. TJX's press releases and financial information are also available at www.tjx.com. Fiscal Year and Fourth Quarter 2012 Earnings Conference Call At 11:00 a.m. ET today, Carol Meyrowitz, Chief Executive Officer of TJX, will hold a conference call with stock analysts to discuss the Company's full year and fourth quarter Fiscal 2012 results, operations and business trends and plans for Fiscal 2013. A real-time webcast of the call will be available at www.tjx.com. A replay of the call will also be available by dialing (866) 367-5577 through Wednesday, February 29, 2012 or at www.tjx.com. February Fiscal 2013 Sales Recorded Call Additionally, the Company expects to release its February 2012 sales results on Thursday, March 1, 2012, at approximately 8:15 a.m. ET. Concurrent with that press release, a recorded message with more detailed information regarding TJX's February sales results, operations and business trends will be available at www.tjx.com, or by calling (703) 736-7248 through Thursday, March 8, 2012. Important Information at Website Archived versions of the Company's recorded messages and conference calls are available at the Investor Information section of www.tjx.com after they are no longer available by telephone as well as reconciliations of non-GAAP financial measures to GAAP financial measures, and other financial information. The Company routinely posts information that may be important to investors in the Investor Information section at www.tjx.com. The Company encourages investors to consult that section of its website regularly. Forward-looking Statement SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Various statements made in this release are forward-looking and involve a number of risks and uncertainties. All statements that address activities, events or developments that we intend, expect or believe may occur in the future are forward-looking statements. The following are some of the factors that could cause actual results to differ materially from the forward-looking statements: global economies and credit and financial markets; foreign currency exchange rates; buying and inventory management; market, geographic and category expansion; customer trends and preferences; quarterly operating results; marketing, advertising and promotional programs; data security; seasonal influences; large size and scale; unseasonable weather; serious disruptions and catastrophic events; competition; personnel recruitment and retention; acquisitions and divestitures; information systems and technology; cash flows; consumer spending; merchandise quality and safety; merchandise importing; international operations; commodity prices; compliance with laws, regulations and orders; changes in laws and regulations; outcomes of litigation and proceedings; real estate leasing; market expectations; tax matters and other factors that may be described in our filings with the Securities and Exchange Commission. We do not undertake to publicly update or revise our forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied in such statements will not be realized.             The TJX Companies, Inc. and Consolidated Subsidiaries Financial Summary (Unaudited) (Dollars In Thousands Except Per Share Amounts)   Thirteen Weeks Ended Fifty-Two Weeks Ended January 28,2012   January 29,2011   January 28,2012   January 29,2011     Net sales $6,709,758$6,331,726$23,191,455$21,942,193     Cost of sales, including buying and occupancy costs 4,884,369 4,666,173 16,854,249 16,040,461 Selling, general and administrative expenses 1,057,739 1,122,081 3,890,144 3,710,053 Provision (credit) for Computer Intrusion related costs - - - (11,550 ) Interest expense, net   9,071   9,145   35,648   39,137     Income from continuing operations before provision for income taxes 758,579 534,327 2,411,414 2,164,092 Provision for income taxes   283,265   203,524   915,324   824,562     Income from continuing operations 475,314 330,803 1,496,090 1,339,530 Income from discontinued operations, net of income taxes   -   3,611   -   3,611     Net income $475,314$334,414$1,496,090$1,343,141     Diluted earnings per share: Income from continuing operations $ 0.62 $ 0.42 $ 1.93 $ 1.65 Net Income $ 0.62 $ 0.42 $ 1.93 $ 1.65     Cash dividends declared per share $ 0.095 $ 0.075 $ 0.38 $ 0.30   Weighted average common shares – diluted (in thousands) 762,819 795,159 773,772 812,825     The TJX Companies, Inc. and Consolidated Subsidiaries Condensed Balance Sheets (Unaudited) (In Millions)             January 28,2012 January 29,2011 ASSETS Current assets: Cash and cash equivalents $ 1,507.1 $ 1,741.8 Short-term investments 94.7 76.3 Accounts receivable and other current assets 474.4 449.8 Current deferred income taxes, net 105.9 66.1 Merchandise inventories   2,950.5   2,765.5   Total current assets   5,132.6   5,099.5   Property and capital leases, net of depreciation 2,715.2 2,460.9 Other assets 253.9 231.5 Goodwill and tradename, net of amortization   179.9   179.9   TOTAL ASSETS $8,281.6$7,971.8   LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,645.3 $ 1,683.9 Accrued expenses and other current liabilities   1,418.1   1,449.2   Total current liabilities   3,063.4   3,133.1   Other long-term liabilities 871.9 722.5 Non-current deferred income taxes, net 362.5 241.9 Long-term debt 774.5 774.4   Shareholders' equity   3,209.3   3,099.9   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $8,281.6$7,971.8     The TJX Companies, Inc. and Consolidated Subsidiaries Condensed Statements of Cash Flows (Unaudited) (In Millions)         Fifty-Two Weeks Ended January 28,2012     January 29,2011   CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,496.1 $ 1,343.1 Depreciation and amortization 485.7 458.1 Deferred income tax provision 144.8 50.6 Share-based compensation 64.2 58.8 (Increase) in accounts receivable and other assets (25.1 ) (23.1 ) (Increase) in merchandise inventories (187.2 ) (211.8 ) Increase (decrease) in accounts payable (36.6 ) 163.8 Increase in accrued expenses and other liabilities 10.7 66.1 Other   (36.7 )   70.9     Net cash provided by operating activities   1,915.9     1,976.5     CASH FLOWS FROM INVESTING ACTIVITIES: Property additions (803.3 ) (707.1 ) Purchases of short-term investments (152.0 ) (119.5 ) Sales and maturities of short-term investments 132.7 180.1 Other   11.6     (1.1 ) Net cash (used in) investing activities   (811.0 )   (647.6 )   CASH FLOWS FROM FINANCING ACTIVITIES: Payments for repurchase of common stock (1,320.8 ) (1,193.4 ) Proceeds from sale and issuance of common stock 219.0 176.2 Cash dividends paid (275.0 ) (229.3 ) Other   41.1     22.6   Net cash (used in) financing activities   (1,335.7 )   (1,223.9 )   Effect of exchange rate changes on cash   (3.9 )   22.2     Net (decrease) increase in cash and cash equivalents (234.7 ) 127.2 Cash and cash equivalents at beginning of year   1,741.8     1,614.6     Cash and cash equivalents at end of year $1,507.1   $1,741.8       The TJX Companies, Inc. and Consolidated Subsidiaries Selected Information by Major Business Segment (Unaudited) (In Thousands)             Thirteen Weeks Ended Fifty-Two Weeks Ended January 28,2012   January 29,2011 January 28,2012   January 29,2011 Net sales:     U.S. segments: Marmaxx $ 4,398,384 $ 4,002,076 $ 15,367,519 $ 14,092,159 HomeGoods 674,328 565,404 2,243,986 1,958,007 A.J. Wright - 278,942 9,229 888,364 International segments: TJX Canada 745,250 706,957 2,680,071 2,510,201 TJX Europe   891,796   778,347     2,890,650     2,493,462   Total net sales $6,709,758$6,331,726   $23,191,455   $21,942,193     Segment profit (loss): U.S. segments: Marmaxx $ 601,968 $ 537,496 $ 2,073,430 $ 1,875,951 HomeGoods 88,386 66,221 234,445 186,535 A.J. Wright - (140,601 ) (49,291 ) (129,986 ) International segments: TJX Canada 93,700 102,064 348,028 351,989 TJX Europe   50,341   26,671     68,739     75,849   Total segment profit 834,395 591,851 2,675,351 2,360,338   General corporate expenses 66,745 48,379 228,289 168,659 Provision (credit) for Computer Intrusion related costs - - - (11,550 ) Interest expense, net   9,071   9,145     35,648     39,137   Income from continuing operations before provision for income taxes $758,579$534,327   $2,411,414   $2,164,092       The TJX Companies, Inc. and Consolidated SubsidiariesNotes to Consolidated Condensed Statements On January 5, 2012, TJX announced that its Board of Directors approved a two-for-one stock split of the Company's common stock in the form of a stock dividend, payable February 2, 2012 to shareholders of record at the close of business on January 17, 2012. The stock split resulted in the issuance of 373 million shares of common stock. The balance sheet as of January 28, 2012 reflects the effect of the stock split. All historical per share amounts and references to common stock activity, as well as basic and diluted share amounts utilized in the calculation of earnings per share in the current period, have been adjusted to reflect the two-for-one stock split. During the fourth quarter ended January 28, 2012, TJX repurchased 12.5 million shares (adjusted for the two-for-one stock split) of its common stock at a cost of $402 million. For the fifty-two weeks ended January 28, 2012, TJX repurchased 49.7 million shares (adjusted for the two-for-one stock split) of its common stock at a cost of $1.4 billion. At the end of fiscal 2012, TJX had $225 million available under the $1 billion stock repurchase program approved in February 2011. In February 2012, TJX announced that its Board of Directors approved an additional $2 billion stock repurchase program. TJX records the repurchase of its stock on a cash basis, and the amounts reflected in the financial statements may vary from the above amounts due to the timing of settlement of repurchases. In the fourth quarter of fiscal 2011, TJX's Board of Directors approved the consolidation of its A.J. Wright division whereby 90 A.J. Wright stores were converted into T.J. Maxx, Marshalls or HomeGoods stores and the remaining 72 stores, its two distribution centers and home office were closed. TJX commenced the liquidation process in the fiscal 2011 fourth quarter and 20 stores had been closed as of January 29, 2011. All of the remaining stores ceased operation by February 13, 2011. The majority of the costs to consolidate A.J. Wright were recognized in last year's fourth quarter resulting in a fiscal 2011 fourth quarter segment loss of $141 million. Because of the timing of the store closings the remainder of the closing costs (primarily lease related obligations) and additional operating losses were reported as a $49 million A.J. Wright segment loss in the first quarter of fiscal 2012. In addition, the first quarter of fiscal 2012 included costs related to the conversion of the 90 A.J. Wright stores to other banners (primarily store payroll and occupancy costs during the approximate eight to twelve week period in which the stores were closed) and costs related to grand opening events when the stores re-opened. These costs totaled $20 million with $17 million reflected in the Marmaxx segment and $3 million in the HomeGoods year to date segment results. The TJX Companies, Inc.Reconciliation of Reported results to Non-GAAP measures The Company reports its financial results in accordance with accounting principles generally accepted in the U.S. (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods and expectations for future periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. The Tables below provide supplemental non-GAAP financial data and corresponding reconciliations to GAAP financial measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. Results for Full Year FY12 reflect expenses related to the A.J. Wright consolidation, including closing costs and additional operating losses related to the closure of A.J. Wright stores not closed in Q4 FY11, and the costs related to the conversion of the former A.J. Wright stores to other TJX banners and the costs related to grand re-opening events when the stores re-opened. Segment results for Full Year FY12 for the Marmaxx and HomeGoods segments reflect the costs related to store conversions and grand re-openings of A.J. Wright stores to their banners. Results for the Full Year and Fourth Quarter FY11, reflect the operating results of the A.J. Wright segment for the fourth quarter of FY11, which includes most of the costs related to the closing of the A.J. Wright business, including closing costs as well as operating losses, and a positive benefit of $11.5M due to a reduction in the Company's provision related to the previously announced computer intrusion(s). The following tables show the reconciliation between Full Year FY12 and FY11 GAAP financial measures on a consolidated basis and for the Marmaxx and HomeGoods segments as well as the Fourth Quarter FY11 and the adjusted non-GAAP financial measures for the respective periods excluding the items identified above.     Full Year Fiscal 2012 - Reconciliation of expense ratios and pre-tax margin                           US$ in Millions Fiscal 2012Fiscal 2012As ReportedAs Adjusted   % to   % to $'s   net sales Adjustments $'s   net sales   Net Sales $23,191 ($9) $23,182   Cost of sales including buying and occupancy costs 16,854 72.7% (16) 16,838 72.6% Gross Profit Margin 27.3% 27.4%   Selling, general and administrative expenses 3,890 16.8% (63) 3,828 16.5%   Interest expense, net 36   36   Income before taxes $2,411   10.4%$69$2,481   10.7%   Full Year Fiscal 2011 - Reconciliation of expense ratios and pre-tax margin             US$ in Millions Fiscal 2011Fiscal 2011As ReportedAs Adjusted % to % to $'s   net sales Adjustments $'s   net sales   Net Sales $21,942 ($279) $21,663   Cost of sales including buying and occupancy costs 16,040 73.1% ($242) 15,798 72.9% Gross Profit Margin 26.9% 27.1%   Selling, general and administrative expenses 3,710 16.9% ($177) 3,533 16.3%   Provision (credit) for Computer Intrusion related costs (12) 12 0   Interest expense, net 39   39   Income before taxes $2,164   9.9%$129$2,293   10.6%   Note: Figures may not foot due to rounding.   Full Year Fiscal 2012 - Reconciliation of Marmaxx & HomeGoods segment margins                                     US$ in Millions Fiscal 2012Fiscal 2012Fiscal 2011As ReportedAs AdjustedAs Reported   % to   % to   % to $'s   net sales Adjustments $'s   net sales $'s   net sales   Marmaxx Net Sales $15,368 $0 $15,368 $14,092 Segment Profit 2,073 13.5% 17 2,090 13.6% 1,876 13.3%   HomeGoods Net Sales $2,244 $0 $2,244 $1,958 Segment Profit 234   10.4% 3 238   10.6% 187   9.5%   Note: Figures may not foot due to rounding.   Q4 of Fiscal 2012 - Reconciliation of expense ratios and pre-tax margin                       US$ in Millions Fiscal 2012As Reported   % to $'s   net sales   Net Sales $6,710   Cost of sales including buying and occupancy costs 4,884 72.8% Gross Profit Margin 27.2%   Selling, general and administrative expenses 1,058 15.8%   Interest expense, net 9   Income before taxes $759   11.3%     Q4 of Fiscal 2011 - Reconciliation of expense ratios and pre-tax margin             US$ in Millions Fiscal 2011Fiscal 2011As ReportedAs Adjusted % to % to $'s   net sales Adjustments $'s   net sales   Net Sales $6,332 ($279) $6,053   Cost of sales including buying and occupancy costs 4,666 73.7% ($243) 4,423 73.1% Gross Profit Margin 26.3% 26.9%   Selling, general and administrative expenses 1,122 17.7% ($177) 945 15.6%   Interest expense, net 9   9   Income before taxes $534   8.4%$141$675   11.2%   Note: Figures may not foot due to rounding. The TJX Companies, Inc.Sherry LangSenior Vice PresidentGlobal Communications(508) 390-2323