The Company reported net income of $428 million, or $1.27 per diluted share for the 2012 26-week period, compared to net income of $303 million, or $0.88 per diluted share for the 2011 26-week period. Excluding adjustments as described in the accompanying reconciliation, adjusted net income for the 2012 26-week period increased by 28 percent to $446 million, or $1.32 per diluted share, compared to adjusted net income of $348 million, or $1.01 per diluted share, in the 2011 26-week period.
As of August 3, 2012, total merchandise inventories, at cost, were $2.15 billion compared to $1.97 billion as of July 29, 2011, an increase of three percent on a per-store basis. Inventory turns were 5.2 times as of August 3, 2012 (based on a 53-week period).
Total additions to property and equipment in the 26-week 2012 period were $304 million, including: $86 million for improvements, upgrades, remodels and relocations of existing stores; $72 million related to new leased stores, primarily for leasehold improvements, fixtures and equipment; $69 million for stores purchased or built by the Company; $63 million for distribution and transportation-related capital expenditures; and $12 million for information systems upgrades and technology-related projects. During the 26-week period, the Company opened 295 new stores and remodeled or relocated 416 stores.
Additional Share Repurchase Authorization
The Company's Board of Directors has authorized the Company to purchase up to an additional $500 million of its common stock, which is over and above the $15 million remaining under the previous $500 million authorization approved in December of 2011. This brings the total authorizations to $1 billion. The Company has repurchased $485 million, or 11.7 million shares, under the December 2011 authorization. The new repurchase authorization has no expiration date and allows repurchases from time to time in the open market or in privately negotiated transactions, which could include repurchases from Buck Holdings, L.P. (which is controlled by affiliates of KKR and Goldman Sachs & Co.) or other related parties if appropriate. The timing and number of shares purchased depends on a variety of factors, such as price, market conditions and other factors.