UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(mark one)
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended July 30, 2022April 29, 2023
OR
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from                     to                     
Commission file number 1-4908 
The TJX Companies, Inc.
(Exact name of registrant as specified in its charter)
Delaware 04-2207613
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
770 Cochituate Road Framingham, Massachusetts 01701
(Address of principal executive offices) (Zip Code)
(508) 390-1000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $1.00 per shareTJXNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes    No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer   Accelerated filer 
Non-accelerated filer   Smaller reporting company 
Emerging growth company    
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES      NO  
The number of shares of registrant’s common stock outstanding as of AugustMay 19, 2022: 1,161,052,9612023: 1,149,238,467



The TJX Companies, Inc.
TABLE OF CONTENTS

2


PART I - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
THE TJX COMPANIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
IN THOUSANDSMILLIONS EXCEPT PER SHARE AMOUNTS
 
Thirteen Weeks EndedTwenty-Six Weeks Ended Thirteen Weeks Ended
July 30,
2022
July 31,
2021
July 30,
2022
July 31,
2021
April 29,
2023
April 30,
2022
Net salesNet sales$11,843,008 $12,077,063 $23,249,482 $22,163,724 Net sales$11,783 $11,406 
Cost of sales, including buying and occupancy costsCost of sales, including buying and occupancy costs8,571,550 8,528,130 16,794,763 15,783,765 Cost of sales, including buying and occupancy costs8,374 8,223 
Selling, general and administrative expensesSelling, general and administrative expenses2,174,861 2,223,692 4,269,443 4,288,684 Selling, general and administrative expenses2,238 2,094 
Impairment on equity investmentImpairment on equity investment — 217,619 — Impairment on equity investment 218 
Loss on early extinguishment of debt 242,248  242,248 
Interest expense, net11,007 28,661 29,792 73,349 
Interest (income) expense, netInterest (income) expense, net(37)19 
Income before income taxesIncome before income taxes1,085,590 1,054,332 1,937,865 1,775,678 Income before income taxes1,208 852 
Provision for income taxesProvision for income taxes276,250 268,651 541,052 456,067 Provision for income taxes317 265 
Net incomeNet income$809,340 $785,681 $1,396,813 $1,319,611 Net income$891 $587 
Basic earnings per shareBasic earnings per share$0.69 $0.65 $1.19 $1.09 Basic earnings per share$0.77 $0.50 
Weighted average common shares – basicWeighted average common shares – basic1,167,922 1,205,054 1,172,531 1,205,247 Weighted average common shares – basic1,153 1,177 
Diluted earnings per shareDiluted earnings per share$0.69 $0.64 $1.18 $1.08 Diluted earnings per share$0.76 $0.49 
Weighted average common shares – dilutedWeighted average common shares – diluted1,178,140 1,220,615 1,183,704 1,221,012 Weighted average common shares – diluted1,165 1,189 
The accompanying notes are an integral part of the unaudited consolidated financial statements.
3


THE TJX COMPANIES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
IN THOUSANDSMILLIONS
 
 Thirteen Weeks Ended
 July 30,
2022
July 31,
2021
Net income$809,340 $785,681 
Additions to other comprehensive (loss) income:
Foreign currency translation adjustments, net of related tax provision of $409 in fiscal 2023 and tax benefit of $1,140 in fiscal 2022(30,935)(876)
Reclassifications from other comprehensive (loss) to net income:
Amortization of prior service cost and deferred gains/losses, net of related tax provisions of $1,376 in fiscal 2023 and $1,590 in fiscal 20223,778 4,368 
Other comprehensive (loss) income, net of tax(27,157)3,492 
Total comprehensive income$782,183 $789,173 
 Thirteen Weeks Ended
 April 29,
2023
April 30,
2022
Net income$891 $587 
Additions to other comprehensive (loss):
Foreign currency translation adjustments, net of related tax benefit of $1 in fiscal 2024 and $1 in fiscal 202314 (59)
Reclassifications from other comprehensive income to net income:
Amortization of prior service cost and deferred gains/losses, net of related tax provisions of $0 in fiscal 2024 and $1 in fiscal 20230 
Other comprehensive income (loss), net of tax14 (55)
Total comprehensive income$905 $532 
Twenty-Six Weeks Ended
July 30,
2022
July 31,
2021
Net income$1,396,813 $1,319,611 
Additions to other comprehensive (loss) income:
Foreign currency translation adjustments, net of related tax benefit of $165 in fiscal 2023 and tax provision of $1,758 in fiscal 2022(88,547)21,373 
Reclassifications from other comprehensive (loss) to net income:
Amortization of prior service cost and deferred gains/losses, net of related tax provisions of $2,751 in fiscal 2023 and $2,646 in fiscal 20227,556 7,269 
Amortization of loss on cash flow hedge, net of related tax provision of $603 in fiscal 2022 (263)
Other comprehensive (loss) income, net of tax(80,991)28,379 
Total comprehensive income$1,315,822 $1,347,990 
The accompanying notes are an integral part of the unaudited consolidated financial statements.
4


THE TJX COMPANIES, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
IN THOUSANDS,MILLIONS, EXCEPT SHARE DATA
 
July 30,
2022
January 29,
2022
July 31,
2021
April 29,
2023
January 28,
2023
April 30,
2022
AssetsAssetsAssets
Current assets:Current assets:Current assets:
Cash and cash equivalentsCash and cash equivalents$3,531,212 $6,226,765 $7,106,016 Cash and cash equivalents$5,025 $5,477 $4,295 
Accounts receivable, netAccounts receivable, net555,691 517,623 615,634 Accounts receivable, net587 563 576 
Merchandise inventoriesMerchandise inventories7,083,260 5,961,573 5,086,631 Merchandise inventories6,441 5,819 6,990 
Prepaid expenses and other current assetsPrepaid expenses and other current assets552,480 438,099 459,046 Prepaid expenses and other current assets496 478 565 
Federal, state and foreign income taxes recoverableFederal, state and foreign income taxes recoverable112,122 114,537 121,703 Federal, state and foreign income taxes recoverable46 119 54 
Total current assetsTotal current assets11,834,765 13,258,597 13,389,030 Total current assets12,595 12,456 12,480 
Net property at costNet property at cost5,389,735 5,270,827 5,107,346 Net property at cost5,899 5,783 5,289 
Non-current deferred income taxes, netNon-current deferred income taxes, net171,723 184,971 127,483 Non-current deferred income taxes, net150 158 177 
Operating lease right of use assetsOperating lease right of use assets8,986,682 8,853,934 9,183,258 Operating lease right of use assets9,177 9,086 9,067 
GoodwillGoodwill96,648 96,662 97,972 Goodwill95 97 97 
Other assetsOther assets611,053 796,467 878,357 Other assets765 769 600 
Total assetsTotal assets$27,090,606 $28,461,458 $28,783,446 Total assets$28,681 $28,349 $27,710 
LiabilitiesLiabilitiesLiabilities
Current liabilities:Current liabilities:Current liabilities:
Accounts payableAccounts payable$4,085,478 $4,465,427 $4,413,316 Accounts payable$4,304 $3,794 $4,371 
Accrued expenses and other current liabilitiesAccrued expenses and other current liabilities3,928,610 4,244,997 3,968,968 Accrued expenses and other current liabilities3,954 4,346 3,811 
Current portion of operating lease liabilitiesCurrent portion of operating lease liabilities1,571,508 1,576,561 1,612,603 Current portion of operating lease liabilities1,609 1,610 1,576 
Current portion of long-term debtCurrent portion of long-term debt499,646 — — Current portion of long-term debt500 500 — 
Federal, state and foreign income taxes payableFederal, state and foreign income taxes payable61,877 181,155 47,171 Federal, state and foreign income taxes payable167 55 261 
Total current liabilitiesTotal current liabilities10,147,119 10,468,140 10,042,058 Total current liabilities10,534 10,305 10,019 
Other long-term liabilitiesOther long-term liabilities916,663 1,015,720 1,072,847 Other long-term liabilities865 919 909 
Non-current deferred income taxes, netNon-current deferred income taxes, net67,030 44,175 3,451 Non-current deferred income taxes, net133 127 54 
Long-term operating lease liabilitiesLong-term operating lease liabilities7,706,002 7,575,590 7,905,814 Long-term operating lease liabilities7,867 7,775 7,777 
Long-term debtLong-term debt2,857,143 3,354,841 3,352,892 Long-term debt2,860 2,859 3,356 
Commitments and contingencies (See Note K)Commitments and contingencies (See Note K)0Commitments and contingencies (See Note K)
Shareholders’ equityShareholders’ equityShareholders’ equity
Preferred stock, authorized 5,000,000 shares, par value $1, no shares issuedPreferred stock, authorized 5,000,000 shares, par value $1, no shares issued — — Preferred stock, authorized 5,000,000 shares, par value $1, no shares issued — — 
Common stock, authorized 1,800,000,000 shares, par value $1, issued and outstanding 1,161,886,769; 1,181,188,731 and 1,202,980,524 respectively1,161,887 1,181,189 1,202,981 
Common stock, authorized 1,800,000,000 shares, par value $1, issued and outstanding 1,150,179,322; 1,155,437,908 and 1,172,711,116 respectivelyCommon stock, authorized 1,800,000,000 shares, par value $1, issued and outstanding 1,150,179,322; 1,155,437,908 and 1,172,711,116 respectively1,150 1,155 1,173 
Additional paid-in capitalAdditional paid-in capital — 117,603 Additional paid-in capital — — 
Accumulated other comprehensive loss(768,141)(687,150)(577,692)
Accumulated other comprehensive (loss) incomeAccumulated other comprehensive (loss) income(592)(606)(742)
Retained earningsRetained earnings5,002,903 5,508,953 5,663,492 Retained earnings5,864 5,815 5,164 
Total shareholders’ equityTotal shareholders’ equity5,396,649 6,002,992 6,406,384 Total shareholders’ equity6,422 6,364 5,595 
Total liabilities and shareholders’ equityTotal liabilities and shareholders’ equity$27,090,606 $28,461,458 $28,783,446 Total liabilities and shareholders’ equity$28,681 $28,349 $27,710 
The accompanying notes are an integral part of the unaudited consolidated financial statements.
5


THE TJX COMPANIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
IN THOUSANDSMILLIONS
 
Twenty-Six Weeks Ended Thirteen Weeks Ended
July 30,
2022
July 31,
2021
April 29,
2023
April 30,
2022
Cash flows from operating activities:Cash flows from operating activities:Cash flows from operating activities:
Net incomeNet income$1,396,813 $1,319,611 Net income$891 $587 
Adjustments to reconcile net income to cash provided by operating activities:
Adjustments to reconcile net income to net cash provided by (used in) operating activities:Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortizationDepreciation and amortization437,733 430,561 Depreciation and amortization232 220 
Loss on early extinguishment of debt 242,248 
Impairment on equity investmentImpairment on equity investment217,619 — Impairment on equity investment 218 
Loss on property disposals and impairment chargesLoss on property disposals and impairment charges5,232 482 Loss on property disposals and impairment charges4 
Deferred income tax provision (benefit)25,867 (39,258)
Deferred income tax provisionDeferred income tax provision16 12 
Share-based compensationShare-based compensation58,186 114,121 Share-based compensation34 27 
Changes in assets and liabilities:Changes in assets and liabilities:Changes in assets and liabilities:
(Increase) in accounts receivable(Increase) in accounts receivable(47,758)(154,350)(Increase) in accounts receivable(22)(66)
(Increase) in merchandise inventories(Increase) in merchandise inventories(1,206,761)(733,035)(Increase) in merchandise inventories(624)(1,085)
Decrease (increase) in income taxes recoverable2,415 (85,441)
(Increase) decrease in prepaid expenses and other current assets(49,755)19,738 
(Decrease) in accounts payable(311,338)(425,274)
(Decrease) increase in accrued expenses and other liabilities(392,606)468,039 
(Decrease) in income taxes payable(122,617)(34,819)
Increase (decrease) in net operating lease liabilities5,771 (96,648)
Decrease in income taxes recoverableDecrease in income taxes recoverable73 61 
(Increase) in prepaid expenses and other current assets(Increase) in prepaid expenses and other current assets(15)(33)
Increase (decrease) in accounts payableIncrease (decrease) in accounts payable507 (53)
(Decrease) in accrued expenses and other liabilities(Decrease) in accrued expenses and other liabilities(477)(565)
Increase in income taxes payableIncrease in income taxes payable113 77 
(Decrease) in net operating lease liabilities(Decrease) in net operating lease liabilities(1)(4)
Other, netOther, net(12,564)(79,096)Other, net14 (34)
Net cash provided by operating activities6,237 946,879 
Net cash provided by (used in) operating activitiesNet cash provided by (used in) operating activities745 (634)
Cash flows from investing activities:Cash flows from investing activities:Cash flows from investing activities:
Property additionsProperty additions(693,495)(444,944)Property additions(361)(314)
Purchases of investmentsPurchases of investments(20,901)(12,182)Purchases of investments(11)(16)
Sales and maturities of investmentsSales and maturities of investments11,013 14,365 Sales and maturities of investments10 
Net cash (used in) investing activitiesNet cash (used in) investing activities(703,383)(442,761)Net cash (used in) investing activities(362)(324)
Cash flows from financing activities:Cash flows from financing activities:Cash flows from financing activities:
Payments on debt (2,975,518)
Payments for repurchase of common stockPayments for repurchase of common stock(1,307,202)(297,099)Payments for repurchase of common stock(492)(607)
Cash dividends paidCash dividends paid(655,213)(628,859)Cash dividends paid(343)(309)
Proceeds from issuance of common stockProceeds from issuance of common stock49,982 62,510 Proceeds from issuance of common stock28 18 
Payments of employee tax withholdings for stock awards(32,454)(24,478)
OtherOther(30)(33)
Net cash (used in) financing activitiesNet cash (used in) financing activities(1,944,887)(3,863,444)Net cash (used in) financing activities(837)(931)
Effect of exchange rate changes on cashEffect of exchange rate changes on cash(53,520)(4,228)Effect of exchange rate changes on cash2 (43)
Net (decrease) in cash and cash equivalentsNet (decrease) in cash and cash equivalents(2,695,553)(3,363,554)Net (decrease) in cash and cash equivalents(452)(1,932)
Cash and cash equivalents at beginning of yearCash and cash equivalents at beginning of year6,226,765 10,469,570 Cash and cash equivalents at beginning of year5,477 6,227 
Cash and cash equivalents at end of periodCash and cash equivalents at end of period$3,531,212 $7,106,016 Cash and cash equivalents at end of period$5,025 $4,295 
The accompanying notes are an integral part of the unaudited consolidated financial statements.
6


THE TJX COMPANIES, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(UNAUDITED)
IN THOUSANDSMILLIONS
Thirteen Weeks EndedThirteen Weeks Ended
Common Stock  Common Stock  
Shares
Par Value
$1
Additional Paid-In
Capital
Accumulated Other Comprehensive
Loss
Retained
Earnings
Total Shares
Par Value
$1
Additional Paid-In
Capital
Accumulated Other Comprehensive
(Loss) Income
Retained
Earnings
Total
Balance, April 30, 20221,172,711 $1,172,711 $ $(740,984)$5,163,713 $5,595,440 
Balance, January 28, 2023Balance, January 28, 20231,155 $1,155 $ $(606)$5,815 $6,364 
Net incomeNet income    809,340 809,340 Net income    891 891 
Other comprehensive (loss), net of tax   (27,157) (27,157)
Other comprehensive income, net of taxOther comprehensive income, net of tax   14  14 
Cash dividends declared on common stockCash dividends declared on common stock    (343,280)(343,280)Cash dividends declared on common stock    (383)(383)
Recognition of share-based compensationRecognition of share-based compensation  30,850   30,850 Recognition of share-based compensation  34   34 
Issuance of common stock under stock incentive plan, and related tax effect1,022 1,022 31,034  (599)31,457 
Issuance of common stock under stock incentive plan and related tax effectIssuance of common stock under stock incentive plan and related tax effect1 1 (3)  (2)
Common stock repurchasedCommon stock repurchased(11,846)(11,846)(61,884) (626,271)(700,001)Common stock repurchased(6)(6)(31) (459)(496)
Balance, July 30, 20221,161,887 $1,161,887 $ $(768,141)$5,002,903 $5,396,649 
Balance, April 29, 2023Balance, April 29, 20231,150 $1,150 $ $(592)$5,864 $6,422 
Thirteen Weeks Ended
Common Stock  
Shares
Par Value
$1
Additional Paid-In
Capital
Accumulated Other Comprehensive
Loss
Retained
Earnings
Total
Balance, May 1, 20211,206,387 $1,206,387 $321,475 $(581,184)$5,192,536 $6,139,214 
Net income— — — — 785,681 785,681 
Other comprehensive income, net of tax— — — 3,492 — 3,492 
Cash dividends declared on common stock— — — — (314,378)(314,378)
Recognition of share-based compensation— — 63,585 — — 63,585 
Issuance of common stock under stock incentive plan, and related tax effect1,105 1,105 25,131 — (347)25,889 
Common stock repurchased and retired(4,511)(4,511)(292,588)— — (297,099)
Balance, July 31, 20211,202,981 $1,202,981 $117,603 $(577,692)$5,663,492 $6,406,384 
Thirteen Weeks Ended
Common Stock  
Shares
Par Value
$1
Additional Paid-In
Capital
Accumulated Other Comprehensive
(Loss) Income
Retained
Earnings
Total
Balance, January 29, 20221,181 $1,181 $ $(687)$5,509 $6,003 
Net income— — — — 587 587 
Other comprehensive (loss), net of tax— — — (55)— (55)
Cash dividends declared on common stock— — — — (347)(347)
Recognition of share-based compensation— — 27 — — 27 
Issuance of common stock under stock incentive plan and related tax effect(15)— — (13)
Common stock repurchased(10)(10)(12)— (585)(607)
Balance, April 30, 20221,173 $1,173 $ $(742)$5,164 $5,595 
The accompanying notes are an integral part of the unaudited consolidated financial statements.
7


THE TJX COMPANIES, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(UNAUDITED)
IN THOUSANDS
Twenty-Six Weeks Ended
 Common Stock  
  Shares
Par Value
$1
Additional Paid-In
Capital
Accumulated Other Comprehensive
Loss
Retained
Earnings
Total
Balance, January 29, 20221,181,189 $1,181,189 $ $(687,150)$5,508,953 $6,002,992 
Net income1,396,813 1,396,813 
Other comprehensive (loss), net of tax   (80,991)(80,991)
Cash dividends declared on common stock    (690,202)(690,202)
Recognition of share-based compensation  58,186   58,186 
Issuance of common stock under stock incentive plan, net of shares used to pay tax withholdings2,167 2,167 15,485  (599)17,053 
Common stock repurchased and retired(21,469)(21,469)(73,671) (1,212,062)(1,307,202)
Balance, July 30, 20221,161,887 $1,161,887 $ $(768,141)$5,002,903 $5,396,649 

Twenty-Six Weeks Ended
Common Stock  
Shares
Par Value
$1
Additional Paid-In
Capital
Accumulated Other Comprehensive
Loss
Retained
Earnings
Total
Balance, January 30, 20211,204,698 $1,204,698 $260,515 $(606,071)$4,973,542 $5,832,684 
Net income— — — — 1,319,611 1,319,611 
Other comprehensive income, net of tax— — — 28,379 28,379 
Cash dividends declared on common stock— — — — (629,314)(629,314)
Recognition of share-based compensation— — 114,121 — — 114,121 
Issuance of common stock under stock incentive plan, net of shares used to pay tax withholdings2,794 2,794 35,555 — (347)38,002 
Common stock repurchased(4,511)(4,511)(292,588)— — (297,099)
Balance, July 31, 20211,202,981 $1,202,981 $117,603 $(577,692)$5,663,492 $6,406,384 
The accompanying notes are an integral part of the unaudited consolidated financial statements.
8


THE TJX COMPANIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note A. Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation
The Consolidated Financial Statements and Notes thereto have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. These Consolidated Financial Statements and Notes thereto are unaudited and, in the opinion of management, reflect all normal recurring adjustments, accruals and deferrals among periods required to match costs properly with the related revenue or activity, considered necessary by The TJX Companies, Inc. (together with its subsidiaries, “TJX”) for a fair statement of its Consolidated Financial Statements for the periods reported, all in conformity with GAAP consistently applied. Investments for which the Company exercises significant influence but does not have control are accounted for under the equity method. The Consolidated Financial Statements and Notes thereto should be read in conjunction with the audited Consolidated Financial Statements, including the related notes, contained in TJX’s Annual Report on Form 10-K for the fiscal year ended January 29, 202228, 2023 (“fiscal 2022”2023”).
These interim results are not necessarily indicative of results for the full fiscal year. TJX’s business, in common with the businesses of retailers generally, is subject to seasonal influences, with higher levels of sales and income generally realized in the second half of the year.
The January 29, 202228, 2023 balance sheet data was derived from audited Consolidated Financial Statements and does not include all disclosures required by GAAP.
Fiscal Year
TJX’s fiscal year ends on the Saturday nearest to the last day of January of each year. The current fiscal year ends January 28, 2023February 3, 2024 (“fiscal 2023”2024”) and is a 52-week53-week fiscal year. Fiscal 20222023 was also a 52-week fiscal year. Fiscal 2024 will be a 53-week fiscal year and will end February 3, 2024.
Use of Estimates
The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. TJX considers its accounting policies relating to inventory valuation, reserves for uncertain tax positions and loss contingencies to be the most significant accounting policies that involve management estimates and judgments. Actual amounts could differ from these estimates, and such differences could be material.
Equity Investment
In fiscal 2020, the Company acquired a minority ownership stake in privately held Familia, an off-price retailer of apparel and home fashions domiciled in Luxembourg that operates stores throughout Russia. During the first quarter ended April 30, 2022,of fiscal 2023, the Company announced that it had committed to divesting its minority investment, and as a result, the Company performed an impairment analysis of this investment. Based on this analysis the Company concluded that there was an other-than-temporary impairment of this investment and recordedresulting in an impairment charge of $218 million representing the entiretyentire carrying value of the Company’s investment. Additionally, the Company realized a $54 million tax benefit when the Company completed the divestiture of this investment during the third quarter of fiscal 2023. See Note F—Fair Value Measurements for additional information.
Deferred Gift Card Revenue
The following table presents deferred gift card revenue activity:
In thousandsJuly 30,
2022
July 31,
2021
Balance, beginning of year$685,202 $576,187 
Deferred revenue852,192 769,970 
Effect of exchange rates changes on deferred revenue(3,288)2,041 
Revenue recognized(905,519)(802,194)
Balance, end of period$628,587 $546,004 

9


In millionsApril 29,
2023
April 30,
2022
Balance, beginning of year$721 $685 
Deferred revenue381 384 
Effect of exchange rates changes on deferred revenue(1)(3)
Revenue recognized(444)(443)
Balance, end of period$657 $623 
TJX recognized $462 million$0.4 billion in gift card revenue for both the three months ended July 30, 2022April 29, 2023 and $436 million in gift card revenue for the three months ended July 31, 2021.April 30, 2022. Gift cards are combined in one homogeneous pool and are not separately identifiable. As such, the revenue recognized consists of gift cards that were part of the deferred revenue balance at the beginning of the period as well as gift cards that were issued during the period.
8


Leases
Supplemental cash flow information related to leases is as follows:
Twenty-Six Weeks EndedThirteen Weeks Ended
In thousandsJuly 30,
2022
July 31,
2021
In millionsIn millionsApril 29,
2023
April 30,
2022
Operating cash flows paid for operating leasesOperating cash flows paid for operating leases$972,062 $1,061,163 Operating cash flows paid for operating leases$495 $488 
Lease liabilities arising from obtaining right of use assetsLease liabilities arising from obtaining right of use assets$1,151,045 $1,016,813 Lease liabilities arising from obtaining right of use assets$529 $757 
Future Adoption of New Accounting Standards
From time to time, the Financial Accounting Standards Board (“FASB”) or other standard setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification are communicated through issuance of an Accounting Standards Update (“ASU”). The Company has reviewed the new guidance and has determined that it will either not apply to TJX or is not expected to be material to its Consolidated Financial Statements upon adoption, and, therefore, the guidance is not disclosed.
Note B. Property at Cost
The following table presents the components of property at cost:
In thousandsJuly 30,
2022
January 29,
2022
July 31,
2021
In millionsIn millionsApril 29,
2023
January 28,
2023
April 30,
2022
Land and buildingsLand and buildings$1,960,479 $1,911,569 $1,771,907 Land and buildings$2,055 $2,043 $1,930 
Leasehold costs and improvementsLeasehold costs and improvements3,666,573 3,652,280 3,634,959 Leasehold costs and improvements3,968 3,874 3,615 
Furniture, fixtures and equipmentFurniture, fixtures and equipment7,080,322 6,871,777 6,692,117 Furniture, fixtures and equipment7,579 7,400 6,961 
Total property at costTotal property at cost$12,707,374 $12,435,626 $12,098,983 Total property at cost$13,602 $13,317 $12,506 
Less: accumulated depreciation and amortizationLess: accumulated depreciation and amortization7,317,639 7,164,799 6,991,637 Less: accumulated depreciation and amortization7,703 7,534 7,217 
Net property at costNet property at cost$5,389,735 $5,270,827 $5,107,346 Net property at cost$5,899 $5,783 $5,289 
Depreciation expense was $216 million$0.2 billion for both the three months ended July 30, 2022April 29, 2023 and $213 million for the three months ended July 31, 2021. Depreciation expense was $434 million for the six months ended JulyApril 30, 2022 and $425 million for the six months ended July 31, 2021.2022.
Non-cash investing activities in the cash flows consist of accrued capital additions of $145 million and $126 million$0.2 billion as of both of the periods ended JulyApril 29, 2023 and April 30, 2022, and July 31, 2021, respectively.
10


Note C. Accumulated Other Comprehensive (Loss) Income
Amounts included in Accumulated other comprehensive loss(loss) income are recorded net of taxes. The following table details the changes in Accumulated other comprehensive loss for the twelve months ended January 29, 202228, 2023 and the sixthree months ended July 30, 2022:April 29, 2023:
In thousandsForeign
Currency
Translation
Deferred
Benefit
Costs
Cash
Flow
Hedge
on Debt
Accumulated
Other
Comprehensive
(Loss) Income
Balance, January 30, 2021$(441,532)$(164,802)$263 $(606,071)
Additions to other comprehensive loss:
Foreign currency translation adjustments (net of taxes of $207)(46,715)— — (46,715)
Recognition of net gains/losses on benefit obligations (net of taxes of $17,659)— (48,504)— (48,504)
Reclassifications from other comprehensive loss to net income:
Amortization of loss on cash flow hedge (net of taxes of $603)— — (263)(263)
Amortization of prior service cost and deferred gains/losses (net of taxes of $4,588)— 14,403 — 14,403 
Balance, January 29, 2022$(488,247)$(198,903)$ $(687,150)
Additions to other comprehensive loss:
Foreign currency translation adjustments (net of taxes of $165)(88,547)(88,547)
Reclassifications from other comprehensive loss to net income:
Amortization of prior service cost and deferred gains/losses (net of taxes of $2,751) 7,556  7,556 
Balance, July 30, 2022$(576,794)$(191,347)$ $(768,141)
In millionsForeign
Currency
Translation
Deferred
Benefit
Costs
Accumulated
Other
Comprehensive
(Loss) Income
Balance, January 29, 2022$(488)$(199)$(687)
Additions to other comprehensive loss:
Foreign currency translation adjustments, net of taxes(56)— (56)
Recognition of net gains/losses on benefit obligations, net of taxes— 121 121 
Reclassifications from other comprehensive loss to net income:
Amortization of prior service cost and deferred gains/losses, net of taxes— 16 16 
Balance, January 28, 2023$(544)$(62)$(606)
Additions to other comprehensive loss:
Foreign currency translation adjustments, net of taxes14  14 
Reclassifications from other comprehensive loss to net income:
Amortization of prior service cost and deferred gains/losses, net of taxes 0 0 
Balance, April 29, 2023$(530)$(62)$(592)
9


Note D. Capital Stock and Earnings Per Share
Capital Stock
TJX repurchased and retired 11.86.5 million shares of its common stock at a cost of approximately $0.7$0.5 billion, including applicable excise tax, during the quarter ended July 30, 2022, on a “trade date” basis. During the six months ended July 30, 2022, TJX repurchased and retired 21.4 million shares of its common stock at a cost of approximately $1.3 billion,April 29, 2023, on a “trade date” basis. TJX reflects stock repurchases in its consolidated financial statements on a “settlement date” or cash basis. TJX had cash expenditures under repurchase programs of $1.3$0.5 billion for the sixthree months ended July 30, 2022April 29, 2023 and $0.3$0.6 billion for the sixthree months ended July 31, 2021.April 30, 2022. These expenditures were funded by cash on hand and cash generated from current and prior period operations.
In February 2022,2023, the Company announced that its Board of Directors had approved a new stock repurchase program that authorizes the repurchase of up to an additional $3.0$2 billion of TJX common stock from time to time. Under this program and previously announced programs, TJX had approximately $2.5$3 billion available for repurchase as of July 30, 2022.April 29, 2023.
All shares repurchased under the stock repurchase programs have been retired.
11


Earnings Per Share
The following table presents the calculation of basic and diluted earnings per share:
Thirteen Weeks EndedTwenty-Six Weeks Ended Thirteen Weeks Ended
Amounts in thousands, except per share amountsJuly 30,
2022
July 31,
2021
July 30,
2022
July 31,
2021
Amounts in millions, except per share amountsAmounts in millions, except per share amountsApril 29,
2023
April 30,
2022
Basic earnings per share:Basic earnings per share:Basic earnings per share:
Net incomeNet income$809,340 $785,681 $1,396,813 $1,319,611 Net income$891 $587 
Weighted average common shares outstanding for basic earnings per share calculationWeighted average common shares outstanding for basic earnings per share calculation1,167,922 1,205,054 1,172,531 1,205,247 Weighted average common shares outstanding for basic earnings per share calculation1,153 1,177 
Basic earnings per shareBasic earnings per share$0.69 $0.65 $1.19 $1.09 Basic earnings per share$0.77 $0.50 
Diluted earnings per share:Diluted earnings per share:Diluted earnings per share:
Net incomeNet income$809,340 $785,681 $1,396,813 $1,319,611 Net income$891 $587 
Weighted average common shares outstanding for basic earnings per share calculationWeighted average common shares outstanding for basic earnings per share calculation1,167,922 1,205,054 1,172,531 1,205,247 Weighted average common shares outstanding for basic earnings per share calculation1,153 1,177 
Assumed exercise / vesting of stock options and awards10,218 15,561 11,173 15,765 
Assumed exercise/vesting of stock options and awardsAssumed exercise/vesting of stock options and awards12 12 
Weighted average common shares outstanding for diluted earnings per share calculationWeighted average common shares outstanding for diluted earnings per share calculation1,178,140 1,220,615 1,183,704 1,221,012 Weighted average common shares outstanding for diluted earnings per share calculation1,165 1,189 
Diluted earnings per shareDiluted earnings per share$0.69 $0.64 $1.18 $1.08 Diluted earnings per share$0.76 $0.49 
Cash dividends declared per shareCash dividends declared per share$0.295 $0.26 $0.59 $0.52 Cash dividends declared per share$0.3325 $0.295 
The weighted average common shares for the diluted earnings per share calculation excludes the impact of outstanding stock options if the assumed proceeds per share of the option is in excess of the average price of TJX’s common stock for the related fiscal period.periods. Such options are excluded because they would have an antidilutive effect. There were 6 million such options excluded for the thirteen weeks ended April 29, 2023. There were 5.1 million such options excluded for the thirteen weeks and twenty-six weeks ended JulyApril 30, 2022. There were no such options excluded for the thirteen weeks and twenty-six weeks ended July 31, 2021.
Note E. Financial Instruments
As a result of its operating and financing activities, TJX is exposed to market risks from changes in interest and foreign currency exchange rates and fuel costs. These market risks may adversely affect TJX’s operating results and financial position. TJX seeks to minimize risk from changes in interest and foreign currency exchange rates and fuel costs through the use of derivative financial instruments when and to the extent deemed appropriate. TJX does not use derivative financial instruments for trading or other speculative purposes and does not use any leveraged derivative financial instruments. TJX recognizes all derivative instruments as either assets or liabilities in the Consolidated Balance Sheet and measures those instruments at fair value. The fair values of the derivatives are classified as assets or liabilities, current or non-current, based upon valuation results and settlement dates of the individual contracts. Changes to the fair value of derivative contracts that do not qualify for hedge accounting are reported in earnings in the period of the change. For derivatives that qualify for hedge accounting, changes in the fair value of the derivatives are either recorded in shareholders’ equity as a component of Accumulated other comprehensive loss(loss) income or are recognized currently in earnings, along with an offsetting adjustment against the basis of the item being hedged.
Diesel Fuel Contracts
TJX hedges portions of its estimated notional diesel fuel requirements based on the diesel fuel expected to be consumed by independent freight carriers transporting TJX’s inventory. Independent freight carriers transporting TJX’s inventory charge TJX a mileage surcharge based on the price of diesel fuel. The hedge agreements are designed to mitigate the volatility of diesel fuel pricing, and the resulting per mile surcharges payable by TJX, by setting a fixed price per gallon for the period being hedged.
10


During fiscal 2022, TJX entered into agreements to hedge a portion of its estimated notional diesel requirements for fiscal 2023, and during the first six months of fiscal 2023, TJX entered into agreements to hedge a portion of its estimated notional diesel fuel requirements for fiscal 2024, and during the first three months of fiscal 2024, TJX entered into agreements to hedge a portion of its estimated notional diesel fuel requirements for the first sixthree months of fiscal 2024.2025. The hedge agreements outstanding at July 30, 2022April 29, 2023 relate to approximately 54%50% of TJX’s estimated notional diesel fuel requirements for the remainder of fiscal 20232024 and approximately 47% of TJX’s estimated notional diesel requirements for the first sixthree months of fiscal 2024.2025. These diesel fuel hedge agreements will settle throughout fiscal 20232024 and throughout the first sevenfour months of fiscal 2024.2025. TJX elected not to apply hedge accounting to these contracts.
12


Foreign Currency Contracts
TJX enters into forward foreign currency exchange contracts to obtain economic hedges on portions of merchandise purchases made and anticipated to be made by the Company’s operations in currencies other than their respective functional currencies. The contracts outstanding at July 30, 2022April 29, 2023 cover merchandise purchases the Company is committed to over the next several months.months in fiscal 2024. Additionally, TJX’s operations in Europe are subject to foreign currency exposure as a result of their buying function being centralized in the U.K. All merchandiseMerchandise is purchased centrally in the U.K. and then shipped and billed to the retail entities in other countries. This intercompany billing to TJX’s European businesses’ Euro denominated operations creates exposure to the central buying entity for changes in the exchange rate between the Euro and British Pound. A portion of the inflows of Euros to the central buying entity provides a natural hedge for merchandise purchased from third-party vendors that is denominated in Euros. TJX calculates any excess Euro exposure each month and enters into forward contracts of approximately 30 days' duration to mitigate this exposure.
TJX also enters into derivative contracts, generally designated as fair value hedges, to hedge intercompany debt. The changes in fair value of these contracts are recorded in Selling, general and administrative expenses and are offset by marking the underlying item to fair value in the same period. Upon settlement, the realized gains and losses on these contracts are offset by the realized gains and losses of the underlying item in Selling, general and administrative expenses.
11


The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at July 30, 2022:April 29, 2023:
In thousandsPayReceiveBlended
Contract
Rate
Balance Sheet
Location
Current
Asset
U.S.$
Current
(Liability)
U.S.$
Net Fair
Value in
U.S.$ at
July 30,
2022
In millionsIn millionsPayReceiveBlended
Contract
Rate
Balance Sheet
Location
Current
Asset
U.S.$
Current
(Liability)
U.S.$
Net Fair
Value in
U.S.$ at
April 29,
2023
Fair value hedges:Fair value hedges:Fair value hedges:
Intercompany balances, primarily debt related:
Intercompany balances, primarily debt:Intercompany balances, primarily debt:
60,000 £50,568 0.8428 Prepaid Exp$343 $ $343 60 £53 0.8807 (Accrued Exp)$ $0.0 $0.0 
A$170,000 U.S.$119,579 0.7034 Prepaid Exp / (Accrued Exp)810 (1,040)(230)A$150 U.S.$105 0.7003 Prepaid Exp4.9  4.9 
U.S.$74,646 £55,000 0.7368 (Accrued Exp) (6,831)(6,831)U.S.$69 £55 0.8010 Prepaid Exp0.2  0.2 
£150,000 U.S.$203,667 1.3578 Prepaid Exp19,059  19,059 £200 U.S.$244 1.2191 (Accrued Exp) (6.5)(6.5)
200,000 U.S.$223,126 1.1156 Prepaid Exp / (Accrued Exp)14,663 (117)14,546 200 U.S.$213 1.0641 Prepaid Exp / (Accrued Exp)0.1 (8.0)(7.9)
Economic hedges for which hedge accounting was not elected:Economic hedges for which hedge accounting was not elected:Economic hedges for which hedge accounting was not elected:
Diesel fuel contracts
Fixed on
2.6M – 3.9M
gal per month
Float on
2.6M – 3.9M
gal per month
N/APrepaid Exp38,234  38,234 Diesel fuel contracts
Fixed on
3.0M – 3.8M
gal per month
Float on
3.0M – 3.8M
gal per month
N/A(Accrued Exp) (19.3)(19.3)
Intercompany billings in TJX International, primarily merchandise related:
Intercompany billings in TJX International, primarily merchandise:Intercompany billings in TJX International, primarily merchandise:
205,500 £173,888 0.8462 Prepaid Exp2,145  2,145 100 £88 0.8811 Prepaid Exp0.3  0.3 
Merchandise purchase commitments:Merchandise purchase commitments:Merchandise purchase commitments:
C$807,155 U.S.$635,000 0.7867 Prepaid Exp / (Accrued Exp)6,657 (984)5,673 C$821 U.S.$610 0.7434 Prepaid Exp / (Accrued Exp)4.9 (1.5)3.4 
C$25,978 19,000 0.7314 (Accrued Exp) (685)(685)C$27 18 0.6790 Prepaid Exp / (Accrued Exp)0.2 0.0 0.2 
£439,682 U.S.$569,000 1.2941 Prepaid Exp / (Accrued Exp)29,989 (2,151)27,838 £367 U.S.$445 1.2147 Prepaid Exp / (Accrued Exp)0.2 (13.3)(13.1)
A$71,070 U.S.$50,750 0.7141 Prepaid Exp / (Accrued Exp)1,055 (364)691 A$90 U.S.$61 0.6829 Prepaid Exp / (Accrued Exp)1.6 (0.1)1.5 
701,000 £124,092 0.1770 Prepaid Exp / (Accrued Exp)2,215 (34)2,181 532 £98 0.1833 (Accrued Exp) (4.1)(4.1)
U.S.$113,734 104,500 0.9188 Prepaid Exp / (Accrued Exp)110 (5,970)(5,860)U.S.$120 112 0.9271 Prepaid Exp / (Accrued Exp)2.6 (0.1)2.5 
Total fair value of derivative financial instrumentsTotal fair value of derivative financial instruments$115,280 $(18,176)$97,104 Total fair value of derivative financial instruments$15.0 $(52.9)$(37.9)
12


The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at January 28, 2023:
In millionsPayReceiveBlended
Contract
Rate
Balance Sheet
Location
Current
Asset
U.S.$
Current
(Liability)
U.S.$
Net Fair
Value in
U.S.$ at
January 28,
2023
Fair value hedges:
Intercompany balances, primarily debt:
60 £53 0.8807 (Accrued Exp)$— $(0.3)$(0.3)
A$150 U.S.$105 0.7003 (Accrued Exp)— (2.6)(2.6)
U.S.$69 £55 0.8010 (Accrued Exp)— (0.3)(0.3)
£200 U.S.$244 1.2191 (Accrued Exp)— (5.5)(5.5)
200 U.S.$213 1.0652 Prepaid Exp / (Accrued Exp)0.8 (7.0)(6.2)
Economic hedges for which hedge accounting was not elected:
Diesel fuel contracts
Fixed on
3.2M – 3.6M
gal per month
Float on
3.2M– 3.6M
gal per month
N/APrepaid Exp3.9 — 3.9 
Intercompany billings in TJX International, primarily merchandise:
146 £129 0.8834 Prepaid Exp0.8 — 0.8 
Merchandise purchase commitments:
C$705 U.S.$525 0.7449 Prepaid Exp / (Accrued Exp)2.2 (7.1)(4.9)
C$23 16 0.7064 Prepaid Exp / (Accrued Exp)0.4 0.0 0.4 
£299 U.S.$356 1.1916 Prepaid Exp / (Accrued Exp)0.1 (15.4)(15.3)
507 £91 0.1788 (Accrued Exp)— (3.6)(3.6)
A$104 U.S.$71 0.6819 (Accrued Exp)— (3.3)(3.3)
U.S.$85 82 0.9634 Prepaid Exp4.3 — 4.3 
Total fair value of derivative financial instruments$12.5 $(45.1)$(32.6)
13


The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at January 29,April 30, 2022:
In thousandsPayReceiveBlended
Contract
Rate
Balance Sheet
Location
Current
Asset
U.S.$
Current
(Liability)
U.S.$
Net Fair
Value in
U.S.$ at
January 29,
2022
Fair value hedges:
Intercompany balances, primarily debt related:
25,000 £4,541 0.1816 Prepaid Exp$72 $— $72 
60,000 £50,568 0.8428 Prepaid Exp111 — 111 
A$170,000 U.S.$122,061 0.7180 Prepaid Exp2,047 — 2,047 
U.S.$74,646 £55,000 0.7368 (Accrued Exp)— (918)(918)
200,000 U.S.$230,319 1.1516 Prepaid Exp4,535 — 4,535 
Economic hedges for which hedge accounting was not elected:
Diesel fuel contracts
Fixed on
3.6M – 4.0M
gal per month
Float on
3.6M– 4.0M
gal per month
N/APrepaid Exp23,649 — 23,649 
Intercompany billings in TJX International, primarily merchandise related:
91,000 £75,894 0.8340 (Accrued Exp)— (145)(145)
Merchandise purchase commitments:
C$987,756 U.S.$783,000 0.7927 Prepaid Exp / (Accrued Exp)6,641 (80)6,561 
C$38,138 26,500 0.6948 (Accrued Exp)— (248)(248)
£325,482 U.S.$442,100 1.3583 Prepaid Exp / (Accrued Exp)6,023 (632)5,391 
453,000 £82,112 0.1813 Prepaid Exp / (Accrued Exp)744 (449)295 
A$65,551 U.S.$47,500 0.7246 Prepaid Exp1,270 — 1,270 
U.S.$66,989 59,000 0.8807 (Accrued Exp)— (820)(820)
Total fair value of derivative financial instruments$45,092 $(3,292)$41,800 
14


The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at July 31, 2021:
In thousandsPayReceiveBlended
Contract
Rate
Balance Sheet
Location
Current
Asset
U.S.$
Current
(Liability)
U.S.$
Net Fair 
Value in 
U.S.$ at 
July 31,
2021
Fair value hedges:
Intercompany balances, primarily debt related:
45,000 £8,846 0.1966 Prepaid Exp$562 $— $562 
A$110,000 U.S.$84,198 0.7654 Prepaid Exp3,100 — 3,100 
U.S.$75,102 £55,000 0.7323 Prepaid Exp1,351 — 1,351 
£250,000 U.S.$346,344 1.3854 Prepaid Exp / (Accrued Exp)426 (1,504)(1,078)
170,000 U.S.$207,623 1.2213 Prepaid Exp / (Accrued Exp)5,169 (143)5,026 
C$150,000 U.S.$124,009 0.8267 Prepaid Exp3,698 — 3,698 
Economic hedges for which hedge accounting was not elected:
Diesel fuel contracts
Fixed on
3.3M – 4.0M
gal per month
Float on
3.3M – 4.0M
gal per month
N/APrepaid Exp21,805 — 21,805 
Intercompany billings in TJX International, primarily merchandise related:
98,000 £84,053 0.8577 Prepaid Exp343 — 343 
Merchandise purchase commitments:
C$630,947 U.S.$512,000 0.8115 Prepaid Exp / (Accrued Exp)7,066 (1,132)5,934 
C$34,928 23,500 0.6728 Prepaid Exp / (Accrued Exp)93 (161)(68)
£396,740 U.S.$555,900 1.4012 Prepaid Exp / (Accrued Exp)5,202 (678)4,524 
A$52,396 U.S.$39,225 0.7486 Prepaid Exp / (Accrued Exp)656 (36)620 
400,100 £75,659 0.1891 Prepaid Exp / (Accrued Exp)961 (126)835 
U.S.$55,198 45,000 0.8152 (Accrued Exp)— (1,713)(1,713)
Total fair value of derivative financial instruments$50,432 $(5,492)$44,940 
15


In millionsPayReceiveBlended
Contract
Rate
Balance Sheet
Location
Current
Asset
U.S.$
Current
(Liability)
U.S.$
Net Fair 
Value in 
U.S.$ at 
April 30,
2022
Fair value hedges:
Intercompany balances, primarily debt:
25 £0.1816 Prepaid Exp$0.1 $— $0.1 
60 £51 0.8428 (Accrued Exp)— (0.1)(0.1)
A$170 U.S.$122 0.7180 Prepaid Exp1.9 — 1.9 
U.S.$75 £55 0.7368 (Accrued Exp)— (5.6)(5.6)
£150 U.S.$204 1.3578 Prepaid Exp15.5 — 15.5 
200 U.S.$229 1.1462 Prepaid Exp16.8 — 16.8 
Economic hedges for which hedge accounting was not elected:
Diesel fuel contracts
Fixed on
3.2M – 4.0M
gal per month
Float on
3.2M – 4.0M
gal per month
N/APrepaid Exp53.7 — 53.7 
Intercompany billings in TJX International, primarily merchandise:
260 £217 0.8331 (Accrued Exp)— (2.3)(2.3)
Merchandise purchase commitments:
C$826 U.S.$655 0.7929 Prepaid Exp14.2 — 14.2 
C$31 22 0.7108 (Accrued Exp)— (0.8)(0.8)
£436 U.S.$582 1.3354 Prepaid Exp / (Accrued Exp)36.3 (0.2)36.1 
A$70 U.S.$51 0.7264 Prepaid Exp1.4 — 1.4 
615 £110 0.1796 Prepaid Exp2.5 — 2.5 
U.S.$152 136 0.8910 (Accrued Exp)— (9.0)(9.0)
Total fair value of derivative financial instruments$142.4 $(18.0)$124.4 
The impact of derivative financial instruments on the Consolidated Statements of Income is presented below:
 Amount of Gain (Loss) Recognized
in Income by Derivative
 Amount of Gain (Loss) Recognized
in Income by Derivative
 Location of Gain (Loss)
Recognized in Income by
Derivative
Thirteen Weeks EndedTwenty-Six Weeks Ended
 Location of Gain (Loss)
Recognized in Income by
Derivative
Thirteen Weeks Ended
In thousandsJuly 30,
2022
July 31,
2021
July 30,
2022
July 31,
2021
In millionsIn millions
 Location of Gain (Loss)
Recognized in Income by
Derivative
April 29,
2023
April 30,
2022
Fair value hedges:Fair value hedges:Fair value hedges:
Intercompany balances, primarily debt relatedSelling, general and administrative expenses$8,961 $15,417 $33,356 $12,553 
Intercompany balances, primarily debtIntercompany balances, primarily debtSelling, general and administrative expenses$6 $24 
Economic hedges for which hedge accounting was not elected:Economic hedges for which hedge accounting was not elected:Economic hedges for which hedge accounting was not elected:
Diesel fuel contractsDiesel fuel contractsCost of sales, including buying and occupancy costs9,356 7,276 53,529 20,846 Diesel fuel contractsCost of sales, including buying and occupancy costs(18)44 
Intercompany billings in TJX International, primarily merchandise relatedCost of sales, including buying and occupancy costs252 3,427 (118)3,545 
Intercompany billings in TJX International, primarily merchandiseIntercompany billings in TJX International, primarily merchandiseCost of sales, including buying and occupancy costs0 
Merchandise purchase commitmentsMerchandise purchase commitmentsCost of sales, including buying and occupancy costs7,465 11,710 48,394 (4,259)Merchandise purchase commitmentsCost of sales, including buying and occupancy costs8 41 
Gain recognized in income$26,034 $37,830 $135,161 $32,685 
(Loss) gain recognized in income(Loss) gain recognized in income$(4)$109 
14


Note F. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date or “exit price”. The inputs used to measure fair value are generally classified into the following hierarchy:
Level 1:  Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2:  Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability
Level 3:  Unobservable inputs for the asset or liability
The following table sets forth TJX’s financial assets and liabilities that are accounted for at fair value on a recurring basis:
In thousandsJuly 30,
2022
January 29,
2022
July 31,
2021
In millionsIn millionsApril 29,
2023
January 28,
2023
April 30,
2022
Level 1Level 1Level 1
Assets:Assets:Assets:
Executive Savings Plan investmentsExecutive Savings Plan investments$364,333 $387,666 $394,078 Executive Savings Plan investments$372.9 $371.6 $366.0 
Level 2Level 2Level 2
Assets:Assets:Assets:
Foreign currency exchange contractsForeign currency exchange contracts$77,046 $21,443 $28,627 Foreign currency exchange contracts$15.0 $8.6 $88.7 
Diesel fuel contractsDiesel fuel contracts38,234 23,649 21,805 Diesel fuel contracts 3.9 53.7 
Liabilities:Liabilities:Liabilities:
Foreign currency exchange contractsForeign currency exchange contracts$18,176 $3,292 $5,492 Foreign currency exchange contracts$33.6 $45.1 $18.0 
Diesel fuel contractsDiesel fuel contracts19.3 — — 
Investments designed to meet obligations under the Executive Savings Plan are invested in registered investment companies traded in active markets and are recorded at unadjusted quoted prices.
Foreign currency exchange contracts and diesel fuel contracts are valued using broker quotations, which include observable market information. TJX does not make adjustments to quotes or prices obtained from brokers or pricing services but does assess the credit risk of counterparties and will adjust final valuations when appropriate. Where independent pricing services provide fair values, TJX obtains an understanding of the methods used in pricing. As such, these instruments are classified within Level 2.
16


The fair value of TJX’s general corporate debt was estimated by obtaining market quotes given the trading levels of other bonds of the same general issuer type and market perceived credit quality. These inputs are considered to be Level 2.2 inputs. The fair value of long-term debt as of July 30, 2022April 29, 2023 was $2.7 billion compared to a carrying value of $2.9 billion primarily due to the recent increase in interest rates. The fair value and the carrying value of the current portion of long-term debt as of April 29, 2023 were both $0.5 billion. The fair value of long-term debt as of January 28, 2023 was $2.6 billion compared to a carrying value of $2.9 billion. The fair value and the carrying value of the current portion of long-term debt as of July 30, 2022 was $0.5 billion compared to a carrying value ofJanuary 28, 2023 were both $0.5 billion. The fair value of long-term debt as of January 29,April 30, 2022 was $3.5 billion compared to a carrying value of $3.4 billion. The fair value of long-term debt as of July 31, 2021 was $3.7$3.2 billion compared to a carrying value of $3.4 billion. These estimates do not necessarily reflect provisions or restrictions in the various debt agreements that might affect TJX’s ability to settle these obligations. For additional information on long-term debt, see Note I—Long-Term Debt and Credit Lines.
TJX’s cash equivalents are stated at cost, which approximates fair value due to the short maturities of these instruments.
Certain assets and liabilities are measured at fair value on a nonrecurring basis, whereas the majority of assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances, such as when there is evidence of an impairment. For the periods ended JulyApril 29, 2023, January 28, 2023 and April 30, 2022, January 29, 2022 and July 31, 2021, the Company did not record any material impairments to long-lived assets.
During the first quarter of fiscal 2023, the Company announced its intention to divest from its position in its minority investment in Familia and re-characterized this investment as held-for-sale valued as a Level 3 position. Given the lack of an active market or observable inputs, the Company derived an exit price which indicated that this investment had no market value. TheAs a result, the Company recorded a $218 million charge in the first quarter of fiscal 2023, which representsrepresented the entirety of its investment. See Note A—Basis of Presentation and Summary of Significant Accounting Policies for additional information.
15


Note G. Segment Information
TJX operates 4four main business segments. The Marmaxx segment (T.J. Maxx, Marshalls, tjmaxx.com and marshalls.com) and the HomeGoods segment (HomeGoods, Homesense, and homegoods.com) both operate in the United States, the TJX Canada segment operates Winners, HomeSense and Marshalls in Canada, and the TJX International segment operates T.K. Maxx, Homesense and tkmaxx.com in Europe and T.K. Maxx in Australia. In addition to the Company’s 4four main business segments, Sierra operates sierra.comretail stores and retail storessierra.com in the U.S. The results of Sierra are included in the Marmaxx segment.
All of TJX’s stores, with the exception of HomeGoods and HomeSense,HomeSense/Homesense, sell family apparel and home fashions. HomeGoods and HomeSenseHomeSense/Homesense offer home fashions.
TJX evaluates the performance of its segments based on “segment profit or loss,” which it defines as pre-tax income or loss before general corporate expense, interest (income) expense, net and certain separately disclosed unusual or infrequent items. “Segment profit or loss,” as defined by TJX, may not be comparable to similarly titled measures used by other entities. This measure of performance should not be considered an alternative to net income or cash flows from operating activities as an indicator of TJX’s performance or as a measure of liquidity.
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Presented below is financial information with respect to TJX’s business segments:
Thirteen Weeks EndedTwenty-Six Weeks Ended Thirteen Weeks Ended
In thousandsJuly 30,
2022
July 31,
2021
July 30,
2022
July 31,
2021
In millionsIn millionsApril 29,
2023
April 30,
2022
Net sales:Net sales:Net sales:
In the United States:In the United States:In the United States:
MarmaxxMarmaxx$7,235,219 $7,348,931 $14,107,489 $13,989,417 Marmaxx$7,366 $6,871 
HomeGoodsHomeGoods1,856,313 2,083,261 3,892,098 4,225,017 HomeGoods1,966 2,036 
TJX CanadaTJX Canada1,248,706 1,021,549 2,330,234 1,787,085 TJX Canada1,038 1,082 
TJX InternationalTJX International1,502,770 1,623,322 2,919,661 2,162,205 TJX International1,413 1,417 
Total net salesTotal net sales$11,843,008 $12,077,063 $23,249,482 $22,163,724 Total net sales$11,783 $11,406 
Segment profit (loss):
Segment profit:Segment profit:
In the United States:In the United States:In the United States:
MarmaxxMarmaxx$933,177 $1,014,175 $1,837,399 $1,839,030 Marmaxx$1,028 $904 
HomeGoodsHomeGoods49,616 182,526 171,601 434,128 HomeGoods144 122 
TJX CanadaTJX Canada197,772 118,686 324,390 190,263 TJX Canada117 127 
TJX InternationalTJX International104,615 173,456 117,847 (48,102)TJX International38 13 
Total segment profitTotal segment profit1,285,180 1,488,843 2,451,237 2,415,319 Total segment profit1,327 1,166 
General corporate expenseGeneral corporate expense188,583 163,602 265,961 324,044 General corporate expense156 77 
Impairment on equity investmentImpairment on equity investment — 217,619 — Impairment on equity investment 218 
Loss on early extinguishment of debt 242,248  242,248 
Interest expense, net11,007 28,661 29,792 73,349 
Interest (income) expense, netInterest (income) expense, net(37)19 
Income before income taxesIncome before income taxes$1,085,590 $1,054,332 $1,937,865 $1,775,678 Income before income taxes$1,208 $852 
Note H. Pension Plans and Other Retirement Benefits
Presented below is financial information relating to TJX’s funded defined benefit pension plan (“qualified pension plan” or “funded plan”) and its unfunded supplemental pension plan (“unfunded plan”) for the periods shown:
Funded PlanUnfunded Plan Funded PlanUnfunded Plan
Thirteen Weeks Ended Thirteen Weeks Ended
In thousandsJuly 30,
2022
July 31,
2021
July 30,
2022
July 31,
2021
In millionsIn millionsApril 29,
2023
April 30,
2022
April 29,
2023
April 30,
2022
Service costService cost$12,168 $12,718 $728 $755 Service cost$8 $12 $1 $
Interest costInterest cost14,426 13,188 931 780 Interest cost18 15 1 
Expected return on plan assetsExpected return on plan assets(22,229)(23,992) — Expected return on plan assets(20)(22) — 
Amortization of net actuarial loss and prior service costAmortization of net actuarial loss and prior service cost4,276 4,697 878 1,155 Amortization of net actuarial loss and prior service cost0 0 
Total expenseTotal expense$8,641 $6,611 $2,537 $2,690 Total expense$6 $$2 $
Funded PlanUnfunded Plan
Twenty-Six Weeks Ended
In thousandsJuly 30,
2022
July 31,
2021
July 30,
2022
July 31,
2021
Service cost$24,336 $24,937 $1,455 $1,510 
Interest cost28,852 26,000 1,862 1,560 
Expected return on plan assets(44,457)(47,984) — 
Amortization of net actuarial loss and prior service cost8,550 7,500 1,757 2,309 
Total expense$17,281 $10,453 $5,074 $5,379 
1816


TJX’s policy with respect to the funded plan is to fund, at a minimum, the amount required to maintain a funded status of 80% of the applicable pension liability (the Funding Target pursuant to the Internal Revenue Code section 430) or such other amount as is sufficient to avoid restrictions with respect to the funding of nonqualified plans under the Internal Revenue Code. The Company does not anticipate any required funding in fiscal 20232024 for the funded plan. The Company anticipates making contributions of $4 million to provide current benefits coming due under the unfunded plan in fiscal 2023.2024.
The amounts included in amortizationAmortization of net actuarial loss and prior service cost in the table above have been reclassified in their entirety from Accumulated other comprehensive loss(loss) income to the Consolidated Statements of Income, net of related tax effects, for the periods presented.
Subsequent to the end of the quarter, the Company announced that it will be offering eligible, former TJX Associates who have not yet commenced their qualified pension plan benefit an opportunity to receive a voluntary lump sum payout of their vested pension plan benefit. As a result, the Company anticipates an immaterial non-cash settlement charge. This potential non-cash settlement charge is expected to be incurred in the third quarter of fiscal 2024 and would impact the Company’s pretax profit margin and earnings per share results.
Note I. Long-Term Debt and Credit Lines
The table below presents long-term debt as of JulyApril 29, 2023, January 28, 2023 and April 30, 2022, January 29, 2022 and July 31, 2021.2022. All amounts are net of unamortized debt discounts.
In thousandsJuly 30,
2022
January 29,
2022
July 31,
2021
General corporate debt:
2.500% senior unsecured notes, maturing May 15, 2023 (effective interest rate of 2.51% after reduction of unamortized debt discount of $33 at July 30, 2022, $56 at January 29, 2022 and $78 at July 31, 2021)$499,967 $499,944 $499,922 
2.250% senior unsecured notes, maturing September 15, 2026 (effective interest rate of 2.32% after reduction of unamortized debt discount of $3,046 at July 30, 2022, $3,419 at January 29, 2022 and $3,792 at July 31, 2021)996,954 996,581 996,208 
1.150% senior unsecured notes, maturing May 15, 2028 (effective interest rate of 1.18% after reduction of unamortized debt discount of $747 at July 30, 2022, $811 at January 29, 2022, and $875 at July 31, 2021)499,253 499,189 499,125 
3.875% senior unsecured notes, maturing April 15, 2030 (effective interest rate of 3.89% after reduction of unamortized debt discount of $475 at July 30, 2022, $506 at January 29, 2022 and $537 at July 31, 2021)495,375 495,344 495,313 
1.600% senior unsecured notes, maturing May 15, 2031 (effective interest rate of 1.61% after reduction of unamortized debt discount of $521 at July 30, 2022, $551 at January 29, 2022, and $581 at July 31, 2021)499,479 499,449 499,419 
4.500% senior unsecured notes, maturing April 15, 2050 (effective interest rate of 4.52% after reduction of unamortized debt discount of $2,094 at July 30, 2022, $2,132 at January 29, 2022 and $2,170 at July 31, 2021)383,405 383,367 383,329 
Total debt3,374,433 3,373,874 3,373,316 
Current maturities of long-term debt, net of debt issuance costs(499,646)— — 
Debt issuance costs(17,644)(19,033)(20,424)
Long-term debt$2,857,143 $3,354,841 $3,352,892 
In millions and net of immaterial unamortized debt discountApril 29,
2023
January 28,
2023
April 30,
2022
General corporate debt:
2.500% senior unsecured notes, maturing May 15, 2023 (effective interest rate of 2.51% after reduction of unamortized debt discount)$500 $500 $500 
2.250% senior unsecured notes, maturing September 15, 2026 (effective interest rate of 2.32% after reduction of unamortized debt discount)998 997 997 
1.150% senior unsecured notes, maturing May 15, 2028 (effective interest rate of 1.18% after reduction of unamortized debt discount)499 499 499 
3.875% senior unsecured notes, maturing April 15, 2030 (effective interest rate of 3.89% after reduction of unamortized debt discount)496 496 495 
1.600% senior unsecured notes, maturing May 15, 2031 (effective interest rate of 1.61% after reduction of unamortized debt discount)500 500 500 
4.500% senior unsecured notes, maturing April 15, 2050 (effective interest rate of 4.52% after reduction of unamortized debt discount)383 383 383 
Total debt3,376 3,375 3,374 
Current maturities of long-term debt, net of debt issuance costs(500)(500)— 
Debt issuance costs(16)(16)(18)
Long-term debt$2,860 $2,859 $3,356 
Senior Unsecured Notes
Subsequent to the quarter end, in the second quarter of fiscal 2024, the Company repaid its 2.500% ten-year Notes due May 2023 at maturity.
Credit Facilities
The CompanyTJX has 2two revolving credit facilities, a $1 billion senior unsecured revolving credit facility maturing in June 2026 (the “2026 Revolving Credit Facility”) and a $500 million revolving credit facility that matureswas set to mature in May 2024 (the “2024 Revolving Credit Facility”). On May 8, 2023, the Company amended the 2024 Revolving Credit Facility to (i) extend the maturity to May 8, 2028 and (ii) replace the London Interbank Offered Rate (“LIBOR”) with a term secured overnight financing rate plus a 0.10% credit spread adjustment (“Adjusted Term SOFR”). Term SOFR borrowings under the “2028 Revolving Credit Facility”, as amended, bear interest at the Adjusted Term SOFR plus a margin of 45.0 - 87.5 basis points and a quarterly facility fee payment of 5.0 - 12.5 basis points on the total commitments under the 2028 Revolving Credit Facility, in each case, based on the Company’s long-term debt ratings. All other material terms and conditions of the 2028 Revolving Credit Facility were unchanged.
Additionally, on May 8, 2023, the Company amended its 2026 Revolving Credit Facility to replace the LIBOR with Adjusted Term SOFR. Term SOFR borrowings under the 2026 Revolving Credit Facility, as amended, bear interest at the Adjusted Term SOFR plus a variable margin based on the Company’s long-term debt ratings. All other material terms and conditions of the 2026 Revolving Credit Facility were unchanged.
17


Under these credit facilities, the Company has maintained a borrowing capacity of $1.5 billion. The termsAs of these revolving credit facilities require quarterly payments on the committed amountApril 29, 2023, January 28, 2023 and payment of interest on borrowings at rates based on LIBOR or a base rate plus a variable margin, in each case based on the Company’s long-term debt ratings. The 2024 Revolving Credit Facility requires usage fees based on total credit extensions under the facility. As of JulyApril 30, 2022, January 29, 2022 and July 31, 2021, there were no amounts outstanding under any of the Company’sthese facilities. Each of these facilities require TJX to maintain a ratio of funded debt to earnings before interest, taxes, depreciation and amortization and rentals (EBITDAR) of not more than 3.50 to 1.00 on a rolling four-quarter basis. TJX was in compliance with all covenants related to its credit facilities at the end of all periods presented.
As of JulyApril 29, 2023, January 28, 2023 and April 30, 2022, January 29, 2022 and July 31, 2021, TJX Canada had 2two uncommitted credit lines, a C$10 million facility for operating expenses and a C$10 million letter of credit facility. As of JulyApril 29, 2023, January 28, 2023 and April 30, 2022, January 29, 2022 and July 31, 2021, and during the quarters and year then ended, there were no amounts outstanding on the Canadian credit lines for operating expenses. As of JulyApril 29, 2023, January 28, 2023 and April 30, 2022, January 29, 2022 and July 31, 2021, the Company’s European business at TJX International had an uncommitted credit line of £5 million. As of JulyApril 29, 2023, January 28, 2023 and April 30, 2022, January 29, 2022 and July 31, 2021, and during the quarters and year then ended, there were no amounts outstanding on the European credit line.
19


Note J. Income Taxes
In August 2022, the Inflation Reduction Act of 2022 (“IRA”), was signed into law. Among other things, the IRA imposes a 15% corporate alternative minimum tax (the “Corporate AMT”) for tax years beginning after December 31, 2022 and levies a 1% excise tax on net stock repurchases after December 31, 2022. The excise tax on the net stock repurchase, Corporate AMT, or other provisions of the IRA did not have a material impact on our results of operations or financial position for the first quarter of fiscal 2024.
The effective income tax rate was 25.4%26.2% for the secondfirst quarter of fiscal 20232024 and 25.5%31.1% for the secondfirst quarter of fiscal 2022.2023. The decrease in the first quarter of fiscal 2024 effective income tax rate was 27.9% for the first six months of fiscal 2023 and 25.7% for the first six months of fiscal 2022. The increase in the effective income tax rate for the first six months of fiscal 2023 was primarily due to the first quarter of fiscal 2023 reflecting the impairment of the Company’sour minority investment in Familia which as of July 30, 2022, did not have an associatedwith no estimated tax benefit and a reduction of excess tax benefits from share-based compensation,that was partially offset by the change of jurisdictional mix of profits and losses and the resolution of various tax matters.
TJX had net unrecognized tax benefits of $272$266 million as of July 30, 2022, $288April 29, 2023, $265 million as of January 29, 202228, 2023 and $280$273 million as of July 31, 2021.April 30, 2022.
TJX is subject to U.S. federal income tax as well as income tax in multiple state, local and foreign jurisdictions. In the U.S. and India, fiscal years through 2010 are no longer subject to examination. In all other jurisdictions, fiscal years through 2011 are no longer subject to examination.
TJX’s accounting policy is to classify interest and penalties related to income tax matters as part of income tax expense. The accrued amounts for interest and penalties on the Consolidated Balance Sheets was $39$40 million as of July 30, 2022, $43April 29, 2023, $37 million as of January 29, 202228, 2023 and $40$44 million as of July 31, 2021.April 30, 2022.
Based on the final resolution of tax examinations, judicial or administrative proceedings, changes in facts or law, expirations of statutes of limitations in specific jurisdictions or other resolutions of, or changes in, tax positions, it is reasonably possible that unrecognized tax benefits for certain tax positions taken on previously filed tax returns may change materially from those represented on the consolidated financial statements as of July 30, 2022.April 29, 2023. During the next 12 months, it is reasonably possible that tax audit resolutions may reduce unrecognized tax benefits by up to $40$54 million, which would reduce the provision for taxes on earnings.
Note K. Contingent Obligations, Contingencies, and Commitments
Contingent Contractual Obligations
TJX is a party to various agreements under which it may be obligated to indemnify the other party with respect to certain losses related to matters including title to assets sold, specified environmental matters or certain income taxes. These obligations are sometimes limited in time or amount. There are no amounts reflected in the Company’s Consolidated Balance Sheets with respect to these contingent obligations.
Legal Contingencies
TJX is subject to certain legal proceedings, lawsuits, disputes and claims that arise from time to time in the ordinary course of its business. TJX has accrued immaterial amounts in the accompanying Consolidated Financial Statements for certain of its legal proceedings.
2018


Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The Thirteen Weeks (second(first quarter) and Twenty-Six Weeks (six months) Ended July 30, 2022April 29, 2023
Compared to
The Thirteen Weeks (second(first quarter) and Twenty-Six Weeks (six months) Ended July 31, 2021April 30, 2022
OVERVIEW
We are the leading off-price apparel and home fashions retailer in the U.S. and worldwide. Our mission is to deliver great value to our customers every day. We do this by selling a rapidly changing assortment of apparel, home fashions and other merchandise at prices generally 20% to 60% below full-price retailers’ (including department, specialty and major online retailers) regular prices on comparable merchandise, every day through our stores and five distinctive branded e-commerce sites. We operate over 4,7004,800 stores through our four main segments: in the U.S., Marmaxx (which operates T.J. Maxx, Marshalls, tjmaxx.com and marshalls.com) and HomeGoods (which operates HomeGoods, Homesense and homegoods.com); TJX Canada (which operates Winners, HomeSense and Marshalls in Canada); and TJX International (which operates T.K. Maxx, Homesense and tkmaxx.com in Europe, and T.K. Maxx in Australia). In addition to our four main segments, Sierra operates sierra.comretail stores and retail storessierra.com in the U.S. The results of Sierra are included in the Marmaxx segment.
RESULTS OF OPERATIONS
As an overview of our financial performance, results for the quarter ended July 30, 2022April 29, 2023 include the following:
Net sales decreased 2%increased 3% to $11.8 billion for the secondfirst quarter of fiscal 20232024 versus last year’s secondfirst quarter sales of $12.1$11.4 billion. As of July 30, 2022,April 29, 2023, the number of stores in operation increased 2%3% and selling square footage increased 1%3% compared to the end of the secondfirst quarter of fiscal 2022.2023.
U.S.Consolidated comp store sales decreased5%increased 3% for the secondfirst quarter of fiscal 2023. The U.S. open-only comp store sales increase was 21% for the second quarter of fiscal 2022.2024. See Net Sales below for definition of both U.S. comp store sales and U.S. open-only comp store sales.
Net sales decreased 7% for TJX International and increased 22% for TJX Canada for the second quarter of fiscal 2023. On a constant currency basis, net sales increased 6% and 28% for TJX International and TJX Canada, respectively.
Diluted earnings per share for the secondfirst quarter of fiscal 2024 were $0.76 versus $0.49 in the first quarter of fiscal 2023. The first quarter of fiscal 2023 were $0.69 versus $0.64 in the second quarter of fiscal 2022. The second quarter of fiscal 2022 included a $0.15$218 million impairment on our equity investment in Familia, or a $0.19 negative impact due to a debt extinguishment charge.on earnings per share.
Pre-tax profit margin (the ratio of pre-tax income to net sales) for the secondfirst quarter of fiscal 20232024 was 9.2%10.3%, which was a 0.52.8 percentage point increase compared with 8.7%7.5% in the secondfirst quarter of fiscal 2022. The second quarter of fiscal 20222023, which included a 2negative 1.9 percentage point negative impact due to a debt extinguishment charge.from the impairment on our equity investment in Familia.
Our cost of sales, ratio, including buying and occupancy costs, ratio for the secondfirst quarter of fiscal 20232024 was 72.4%71.1%, a 1.81.0 percentage point increasedecrease compared with 70.6%72.1% in the secondfirst quarter of fiscal 2022.2023.
Our selling, general and administrative (“SG&A”) expense ratio for the secondfirst quarter of fiscal 20232024 was 18.4%19.0%, which was flat versusa 0.6 percentage point increase compared with 18.4% in the secondfirst quarter of fiscal 2022.2023.
Our consolidated average per store inventories, including inventory on hand at our distribution centers (which excludes inventory in transit) and excluding our e-commerce sites and Sierra stores, were up 33%down 5% on a reported basis and 35%down 4% on a constant currency basis at the end of the secondfirst quarter of fiscal 2023.2024.
During the secondfirst quarter of fiscal 2023,2024, we returned over $1$0.8 billion to our shareholders through share repurchases and dividends.
21


Operating Results as a Percentage of Net Sales
The following table sets forth our consolidated operating results as a percentage of net sales:
Thirteen Weeks EndedTwenty-Six Weeks EndedThirteen Weeks Ended
July 30,
2022
July 31,
2021
July 30,
2022
July 31,
2021
April 29,
2023
April 30,
2022
Net salesNet sales100.0 %100.0 %100.0 %100.0 %Net sales100.0 %100.0 %
Cost of sales, including buying and occupancy costsCost of sales, including buying and occupancy costs72.4 70.6 72.2 71.2 Cost of sales, including buying and occupancy costs71.1 72.1 
Selling, general and administrative expensesSelling, general and administrative expenses18.4 18.4 18.4 19.4 Selling, general and administrative expenses19.0 18.4 
Impairment on equity investmentImpairment on equity investment — 0.9 — Impairment on equity investment 1.9 
Loss on early extinguishment of debt 2.0  1.1 
Interest expense, net0.1 0.2 0.1 0.3 
Income before provision for income taxes*
9.2 %8.7 %8.3 %8.0 %
Interest (income) expense, netInterest (income) expense, net(0.3)0.2 
Income before income taxes*
Income before income taxes*
10.3 %7.5 %
*Figures may not foot due to rounding.
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Net Sales
Net sales for the quarter ended July 30, 2022April 29, 2023 totaled $11.8 billion, a 2% decrease3% increase versus secondfirst quarter fiscal 20222023 net sales of $12.1$11.4 billion. The decreaseincrease reflects a 5% decrease3% increase in U.S. comp store sales and a 2%1% increase from non-comp store sales, partially offset by a 1% negative impact from foreign currency exchange rates. This decrease was partially offset by a fully open store base for the second quarter compared to having temporary store closures in the second quarter of fiscal 2022, as well as an increase from non-comp store sales. Net sales from our e-commerce sites combined amounted to less than 2% of total sales for each of the secondfirst quarters of fiscal 20232024 and fiscal 2022.2023.
Net sales for the six months ended July 30, 2022 totaled $23.2 billion, a 5% increase versus the first six months of fiscal 2022 net sales of $22.2 billion. The increase reflects a fully open store base for the six-month period compared to having temporary store closures for the first six months of fiscal 2022, as well as an increase from non-comp store sales. This was partially offset by a 2% decrease in U.S. comp store sales and a 2% negative impact from foreign currency exchange rates. Net sales from our e-commerce sites combined amounted to less than 3% of total sales for the first six months of both fiscal 2023 and fiscal 2022.
For fiscal 2023, weWe have returned to our historical definition of comparable store sales.sales (as defined below). While stores in the U.S. were open for all of fiscal 2022, a significant number of stores in TJX Canada and TJX International experienced COVID-19 relatedCOVID-related temporary store closures and government-mandated shopping restrictions during fiscal 2022. Therefore, in fiscal 2023, we cannotcould not measure year-over-year comparable store sales with fiscal 2022 in these geographies in a meaningful way. As a result, the comparable stores included in the fiscal 2023 measure consistconsisted of U.S. stores only, which we refer to as U.S. comparable store sales (“U.S. comp store sales”), and are calculated against sales for the comparable periodsperiod in fiscal 2022.
U.S. compComp store sales decreased 5% for the second quarter and 2%increased 3% for the first six monthsquarter of fiscal 2023 compared to a 21% open-only comp store sales increase in the second quarter and a 19% open-only comp store increase in the first six months of fiscal 2022.2024. U.S. comp store sales for both periodsthe first quarter of fiscal 2023 were flat. Comp store sales reflect an increase in customer traffic, partially offset by a decrease in customer trafficaverage basket. Within average basket, a decline in units was partially offset by an increase in average basket driven by higher average ticket. PositiveStrong apparel comp sales outperformed a decline in home fashions sales for the secondfirst quarter and first six months ended July 30, 2022.
There remains significant uncertainty in the current macro-economic environment, driven by inflationary pressures, as well as ongoing industry-wide supply chain issues. These factors have impacted, and are expected to continue to impact, consumer discretionary spending and many of the costs in our business.fiscal 2024.
As of July 30, 2022,April 29, 2023, our store count increased 2%3% and selling square footage increased 1%3% compared to the end of the secondfirst quarter last year.
Definition of CompComparable Store Sales
We define comparable store sales, or comp store sales, to be sales of stores that have been in operation for all or a portion of two consecutive fiscal years, or, in other words, stores that are starting their third fiscal year of operation. We calculate comp store sales on a 52-week basis by comparing the current and prior year weekly periods that are most closely aligned. Relocated stores and stores that have changed in size are generally classified in the same way as the original store, and we believe that the impact of these stores on the consolidated comp percentage is immaterial.
22


Sales excluded from comp store sales (“non-comp store sales”) consist of sales from:
New stores - stores that have not yet met the comp store sales criteria, which represents a substantial majority of non-comp store sales
Stores that are closed permanently or for an extended period of time
Sales from our e-commerce sites
We determine which stores are included in the comp store sales calculation at the beginning of a fiscal year and the classification remains constant throughout that year unless a store is closed permanently or for an extended period during that fiscal year.
Comp store sales of our foreign segments are calculated by translating the current year’s comp store sales using the prior year’s exchange rates. This removes the effect of changes in currency exchange rates, which we believe is a more accurate measure of segment operating performance.
Comp store sales may be referred to as “same store” sales by other retail companies. The method for calculating comp store sales varies across the retail industry,industry; therefore, our measure of comp store sales may not be comparable to that of other retail companies.
We define customer traffic to be the number of transactions in stores and average ticket to be the average retail price of the units sold. We define average transaction or average basket to be the average dollar value of transactions.
Open-Only Comp Store Sales
Due to the temporary closing of stores as a result of the COVID-19 pandemic, our historical definition of comp store sales was not applicable for fiscal 2022. In order to provide a performance indicator for its stores, during fiscal 2022, we temporarily reported open-only comp store sales. Open-only comp store sales included stores initially classified as comp stores at the beginning of fiscal 2021. This measure reported the sales increase or decrease of these stores for the days the stores were open in fiscal 2022 against sales for the same days in fiscal 2020, prior to the emergence of the global pandemic.
Impact of Foreign Currency Exchange Rates
Our operating results are affected by foreign currency exchange rates as a result of changes in the value of the U.S. dollar or a division’s local currency in relation to other currencies. We specifically refer to “foreign currency” as the impact of translational foreign currency exchange and mark-to-market of inventory derivatives, as described in detail below. This does not include the impact foreign currency exchange rates can have on various transactions that are denominated in a currency other than an operating division's local currency, which areis referred to as “transactional foreign exchange,” and also described below.
20


Translation Foreign Exchange
In our consolidated financial statements, we translate the operations of TJX Canada and TJX International from local currencies into U.S. dollars using currency rates in effect at different points in time. Significant changes in foreign exchange rates between comparable prior periods can result in meaningful variations in assets, liabilities, net sales, net income and earnings per share growth as well as the net sales and operating results of these segments. Currency translation generally does not affect operating margins, or affects them only slightly, as sales and expenses of the foreign operations are translated at approximately the same rates within a given period.
Mark-to-Market Inventory Derivatives
We routinely enter into inventory-related hedging instruments to mitigate the impact on earnings of changes in foreign currency exchange rates on merchandise purchases denominated in currencies other than the local currencies of our divisions, principally TJX Canada and TJX International. As we have not elected “hedge accounting” for these instruments, as defined by U.S. generally accepted accounting principles (“GAAP”), we record a mark-to-market gain or loss on the derivative instruments in our results of operations at the end of each reporting period. In subsequent periods, the income statement impact of the mark-to-market adjustment is effectively offset when the inventory being hedged is received and paid for. While these effects occur every reporting period, they are of much greater magnitude when there are sudden and significant changes in currency exchange rates during a short period of time. The mark-to-market adjustment on these derivatives does not affect net sales, but it does affect the cost of sales, operating margins and earnings we report.
23


Transactional Foreign Exchange
When discussing the impact on our results of the effect of foreign currency exchange rates on certain transactions, we refer to it as “transactional foreign exchange”. This primarily includes the impact that foreign currency exchange rates may have on the year-over-year comparison of merchandise margin as well as “foreign currency gains and losses” on transactions that are denominated in a currency other than the operating division's local currency. These two items can impact segment margin comparison of our foreign divisions, and we have highlighted them when they are meaningful to understanding operating trends.
Cost of Sales, Including Buying and Occupancy Costs
Cost of sales, including buying and occupancy costs, as a percentage of net sales was 72.4%71.1% for the secondfirst quarter of fiscal 2023, an increase2024, a decrease of 1.81 percentage points from 70.6%point over 72.1% for the secondfirst quarter of fiscal of 2022.2023.
Cost of sales, including buying and occupancy costs, as a percentage of net sales was 72.2% for the first six months of fiscal 2023, an increase of 1.0 percentage point from 71.2% for the first six months of fiscal of 2022.
The increasedecrease in the cost of sales ratio, including buying and occupancy costs, for the secondfirst quarter and six-month periodof fiscal 2024 was primarily attributable to lowerhigher merchandise margin, and investments in supply chain. Within merchandise margin, strong markon and a benefit from our pricing initiative were more thanpartially offset by approximately 2.4 percentage points of incrementalthe unfavorable impact on the mark-to-market adjustment on fuel and inventory hedges. Merchandise margin reflects favorable freight forcosts and higher markon, partially offset by higher shrink accrual rates in the second quarter and approximately 2.3 percentage points of incremental freight for the first six months of fiscal 2023 as well as higher markdowns. Additionally, the second quarter was further impacted by deleverage on occupancy and administrative costs and unfavorable mark-to-market adjustments on inventory and fuel hedges.current year.
Selling, General and Administrative Expenses
SG&A expenses, as a percentage of net sales, were 18.4%was 19.0% for the secondfirst quarter of fiscal 2023, which was flat relative to last year’s second quarter ratio2024, an increase of 18.4%.
SG&A expenses, as a0.6 percentage of net sales, werepoints over 18.4% for the first six months of fiscal 2023, a decrease of 1.0 percentage points over last year’s first six months ratio of 19.4%.
For the second quarter, the SG&A ratio was flat compared to the same period of fiscal 2022 primarily driven by lower store payroll costs due to a reduction in COVID-related costs, partially offset by higher store wages, as well as government programs received in the second quarter of fiscal 2022 that did not continue in fiscal 2023.
The decreaseincrease in the SG&A ratio for the first six monthsquarter of fiscal 2023 compared to the same period of fiscal 20222024 was primarily driven by higher administrative costs, store payroll due to a reduction of COVID-related costs.management and store associate payroll.
Impairment on Equity Investment
During the first quarter ended April 30, 2022, due to the Russian invasion of Ukraine,fiscal 2023, we announced that we had committed to divestingand completed the divestiture of our minority investment in Familia, an off-price retailer of apparel and home fashions domiciled in Luxembourg that operates stores in Russia.Familia. As a result, we performed an impairment analysis and concluded that there was an other-than-temporary impairment of this investment. We recorded an impairment charge of $218 million in the first quarter of fiscal 2023 representing the entire carrying value of the investment. Additionally, we realized a $54 million tax benefit when we completed the divestiture of this investment induring the firstthird quarter of fiscal 2023. This charge had a $0.18 negative impact on earnings per share for the six months ended July 30, 2022.
21


Interest (Income) Expense, net
The components of interest (income) expense, net are summarized below:
Thirteen Weeks EndedTwenty-Six Weeks Ended Thirteen Weeks Ended
In millionsIn millionsJuly 30,
2022
July 31,
2021
July 30,
2022
July 31,
2021
In millionsApril 29,
2023
April 30,
2022
Interest expenseInterest expense$23 $30 $46 $77 Interest expense$23 $23 
Capitalized interestCapitalized interest(2)(1)(3)(2)Capitalized interest(1)(2)
Interest (income)Interest (income)(10)(1)(13)(2)Interest (income)(59)(2)
Interest expense, net$11 $28 $30 $73 
Interest (income) expense, netInterest (income) expense, net$(37)$19 
Net interest (income) expense decreased for both the secondfirst quarter of fiscal 2023 and the six months ended July 30, 20222024 compared to the same periodsperiod in fiscal 2022, primarily2023 due to the $2.75 billion pay down of outstanding debt during fiscal 2022 as well as an increase in interest income over the same periods.driven by an increase in prevailing rates and a higher average cash balance.
24


Provision for Income Taxes
In August 2022, the Inflation Reduction Act of 2022 (“IRA”), was signed into law. Among other things, the IRA imposes a 15% corporate alternative minimum tax (the “Corporate AMT”) for tax years beginning after December 31, 2022 and levies a 1% excise tax on net stock repurchases after December 31, 2022. The excise tax on the net repurchase, the Corporate AMT or other provisions of the IRA did not have a material impact on our results of operations or financial position for the first quarter of fiscal 2024.
The effective income tax rate was 25.4%26.2% for the secondfirst quarter of fiscal 20232024 compared to 25.5%31.1% for the secondfirst quarter of fiscal 2022.2023. The decrease in the first quarter of fiscal 2024 effective income tax rate was 27.9% and 25.7% forprimarily due to the first six monthsquarter of fiscal 2023 and fiscal 2022, respectively. The increase in the effective income tax rate for the first six months of fiscal 2023 is primarily due toreflecting the impairment of our minority investment in Familia which, as of July 30, 2022, did not have an associatedwith no estimated tax benefit and a reduction of excess tax benefits from share-based compensation,that was partially offset by the change of jurisdictional mix of profits and losses and the resolution of various tax matters.
Net Income and Diluted Earnings Per Share
Net income for the secondfirst quarter of fiscal 20232024 was $0.8$0.9 billion, or $0.69$0.76 per diluted share compared with $0.8$0.6 billion, or $0.64 per diluted share for the second quarter of fiscal 2022. Foreign currency had a $0.03 negative impact on earnings per share for the second quarter of fiscal 2023 compared to a $0.01 positive impact on earnings per share for the second quarter of fiscal 2022. The $242 million debt extinguishment charge in fiscal 2022 had a $0.15 negative impact on earnings per share for the second quarter of fiscal 2022.
Net income for the first six months of fiscal 2023 was $1.4 billion, or $1.18 per diluted share compared with $1.3 billion, or $1.08$0.49 per diluted share for the first six monthsquarter of fiscal 2022.2023. The $218 million impairment on our minorityequity investment in Familia had a $0.18$0.19 negative impact on earnings per share for the first six monthsquarter of fiscal 2023. Foreign currency had a $0.02 negativeneutral impact on earnings per share for the first six monthsquarter of fiscal 20232024 compared to a $0.01$0.02 positive impact on earnings per share for the first six monthsquarter of fiscal 2022. The $242 million debt extinguishment2023.
Subsequent to the end of the quarter, we announced that we will be offering eligible, former TJX Associates who have not yet commenced their qualified pension plan benefit an opportunity to receive a voluntary lump sum payout of their vested pension plan benefit. As a result, we anticipate an immaterial non-cash settlement charge. This potential non-cash settlement charge is expected to be incurred in the third quarter of fiscal 2022 had a $0.15 negative2024 and would impact onour pretax profit margin and earnings per share for the first six months of fiscal 2022.results.
Segment Information
We operate four main business segments. Our Marmaxx segment (T.J. Maxx, Marshalls, tjmaxx.com and marshalls.com) and our HomeGoods segment (HomeGoods, Homesense and homegoods.com) both operate in the United States. Our TJX Canada segment operates Winners, HomeSense and Marshalls in Canada, and our TJX International segment operates T.K. Maxx, Homesense and tkmaxx.com in Europe and T.K. Maxx in Australia. In addition to our four main segments, Sierra operates sierra.comretail stores and retail storessierra.com in the U.S. The results of Sierra are included in the Marmaxx segment.
We evaluate the performance of our segments based on “segment profit or loss,” which we define as pre-tax income or loss before general corporate expense and interest (income) expense, net, and certain separately disclosed unusual or infrequent items. “Segment profit or loss,” as we define the term, may not be comparable to similarly titled measures used by other companies. The terms “segment margin” or “segment profit margin” are used to describe segment profit or loss as a percentage of net sales. These measures of performance should not be considered an alternative to net income or cash flows from operating activities as an indicator of our performance or as a measure of liquidity.
Presented below is selected financial information related to our business segments.

2522


U.S. SEGMENTS
Marmaxx
 Thirteen Weeks EndedTwenty-Six Weeks Ended
U.S. dollars in millionsJuly 30,
2022
July 31,
2021
July 30,
2022
July 31,
2021
Net sales$7,235 $7,349 $14,107 $13,989 
Segment profit$933 $1,014 $1,837 $1,839 
Segment profit margin12.9 %13.8 %13.0 %13.1 %
Comp store sales(a)
(2)%18 %0 %15 %
Stores in operation at end of period:
T.J. Maxx1,290 1,283 
Marshalls1,157 1,145 
Sierra62 52 
Total2,509 2,480 
Selling square footage at end of period (in thousands):
T.J. Maxx27,986 27,887 
Marshalls26,318 26,144 
Sierra1,005 847 
Total55,309 54,878 
(a)Comp store sales reported for fiscal 2023 and open-only comp store sales reported for fiscal 2022.     
 Thirteen Weeks Ended
U.S. dollars in millionsApril 29,
2023
April 30,
2022
Net sales$7,366 $6,871 
Segment profit$1,028 $904 
Segment profit margin14.0 %13.2 %
Comp store sales5 %%
Stores in operation at end of period:
T.J. Maxx1,304 1,285 
Marshalls1,189 1,155 
Sierra81 60 
Total2,574 2,500 
Selling square footage at end of period (in millions):
T.J. Maxx28 28 
Marshalls27 26 
Sierra1 
Total56 55 
Net Sales
Net sales for Marmaxx were $7.2$7.4 billion for the secondfirst quarter of fiscal 2023, a decrease2024, an increase of 2%7% compared to $7.3$6.9 billion for the secondfirst quarter of fiscal 2022. The decrease2023. This increase in the secondfirst quarter was driven by a 5% increase from comp store sales and a 2% decreaseincrease from non comp store sales. The decreaseincrease in comp store sales was primarily attributable to a decrease in customer traffic, partially offset by an increase in average basket driven by higher average ticket. Net sales for Marmaxx were $14.1 billion forcustomer traffic. For the first six months of fiscalquarter ended April 29, 2023, an increase of 1% compared to $14.0 billion for the first six months of fiscal 2022 due to non-comp store sales. Comp store sales growth for the first six months was flat. For both the three and six months ended July 30, 2022, positivestrong apparel sales outperformed a decline in home fashions sales. All geographies generally performed in line with the overall comp store sales increase.
Segment Profit Margin
Segment profit margin decreasedincreased to 12.9%14.0% for the secondfirst quarter of fiscal 20232024 compared to 13.8% for the same period last year. Segment profit margin decreased to 13.0% for the first six months of fiscal 2023 compared to 13.1%13.2% for the same period last year. The decreaseincrease in segment profit margin for both periodsthe first quarter of fiscal 2024 was primarily driven by deleverageimproved merchandise margin and leverage on lowerhigher comp store sales, primarily in occupancy and administrative costs, higher store and distribution center wages and lower merchandise margin, partially offset by store payroll reflecting lower COVID-related expenses.increased administrative costs. Within merchandise margin, incrementalfavorable freight costscosts and higher markdownsmarkon were partially offset by strong markon andhigher shrink accrual rates in the benefits from our pricing initiative.current year.
Our Marmaxx e-commerce sites, tjmaxx.com and marshalls.com, together with sierra.com, represented less than 3% of Marmaxx’s net sales for the secondfirst quarter and the first six months of fiscal 20232024 and fiscal 2022,2023, and did not have a significant impact on year-over-year segment margin comparisons.
2623


HomeGoods
 Thirteen Weeks EndedTwenty-Six Weeks Ended
U.S. dollars in millionsJuly 30,
2022
July 31,
2021
July 30,
2022
July 31,
2021
Net sales$1,856 $2,083 $3,892 $4,225 
Segment profit$50 $182 $172 $434 
Segment profit margin2.7 %8.8 %4.4 %10.3 %
Comp store sales(a)
(13)%36 %(10)%38 %
Stores in operation at end of period:
HomeGoods862 846 
Homesense40 39 
Total902 885 
Selling square footage at end of period (in thousands):
HomeGoods15,760 15,475 
Homesense858 837 
Total16,618 16,312 
(a)Comp store sales reported for fiscal 2023 and open-only comp store sales reported for fiscal 2022.     
 Thirteen Weeks Ended
U.S. dollars in millionsApril 29,
2023
April 30,
2022
Net sales$1,966 $2,036 
Segment profit$144 $122 
Segment profit margin7.3 %6.0 %
Comp store sales(7)%(7)%
Stores in operation at end of period:
HomeGoods901 859 
Homesense49 39 
Total950 898 
Selling square footage at end of period (in millions):
HomeGoods17 16 
Homesense1 
Total18 17 
Net Sales
Net sales for HomeGoods were $1.9approximately $2 billion for the secondfirst quarter of fiscal 2023,2024, a decrease of 11%3%, compared to $2.1approximately $2 billion for the secondfirst quarter of fiscal 2022. The2023. This decrease in the secondfirst quarter reflects a 13%7% decrease from comp store sales, partially offset by a 2% increase from non-comp store sales. Net sales for HomeGoods were $3.9 billion for the first six months of fiscal 2023, a decrease of 8%, compared to $4.2 billion for the first six months of fiscal 2022. The decrease in the first six months reflects a 10% decrease from comp store sales, partially offset by a 2%4% increase from non-comp store sales. The decreasesdecrease in comp store sales for both the secondfirst quarter and first six months of fiscal 2023 were2024 was driven by a decrease in customer traffic, partially offset by an increase in average basket driven by higherdue to lower average ticket.ticket and a decrease in customer traffic. All geographies performed in line with the overall comp store sales decline.
Segment Profit Margin
Segment profit margin decreasedincreased to 2.7%7.3% for the secondfirst quarter of fiscal 20232024 compared to 8.8% for the same period last year. Segment profit margin decreased to 4.4% for the first six months of fiscal 2023 compared to 10.3%6.0% for the same period last year. The decreaseincrease in segment profit margin for both periodsthe first quarter was driven by lowerhigher merchandise margin, partially offset by deleverage on lower comp store sales, primarily in occupancy and administrative costs, and higher store and distribution center wages. The decrease in segment profit margin for both periods was partially offset by store and distribution payroll reflecting lower COVID-related expenses and fewer units processed.expenses. Merchandise margin includes incrementalincreased due to favorable freight costs of nearly 8 percentage points and approximately 7.4 percentage points in the second quarter and six months ended July 30, 2022, respectively, as well as higher markdowns. These costs were partially offset by strong markon and the benefits from our pricing initiative..
Our HomeGoods e-commerce website, homegoods.com, represented less than 1% of HomeGoods net sales for the secondfirst quarter and the first six months of fiscal 2023,2024, and did not have a significant impact on year-over-year segment margin comparisons.
2724


FOREIGN SEGMENTS
TJX Canada
Thirteen Weeks EndedTwenty-Six Weeks Ended Thirteen Weeks Ended
U.S. dollars in millionsU.S. dollars in millionsJuly 30,
2022
July 31,
2021
July 30,
2022
July 31,
2021
U.S. dollars in millionsApril 29,
2023
April 30,
2022
Net salesNet sales$1,248 $1,022 $2,330 $1,787 Net sales$1,038 $1,082 
Segment profitSegment profit$197 $118 $324 $190 Segment profit$117 $127 
Segment profit marginSegment profit margin15.8 %11.6 %13.9 %10.6 %Segment profit margin11.3 %11.7 %
Comp store sales(a)
Comp store sales(a)
1 %N/A
Stores in operation at end of period:Stores in operation at end of period:Stores in operation at end of period:
WinnersWinners295 290 Winners298 293 
HomeSenseHomeSense150 147 HomeSense152 148 
MarshallsMarshalls106 105 Marshalls106 106 
TotalTotal551 542 Total556 547 
Selling square footage at end of period (in thousands):
Selling square footage at end of period (in millions):Selling square footage at end of period (in millions):
WinnersWinners6,324 6,241 Winners6 
HomeSenseHomeSense2,778 2,733 HomeSense3 
MarshallsMarshalls2,220 2,201 Marshalls2 
TotalTotal11,322 11,175 Total11 11 
(a)Comp store sales reported for fiscal 2024 and was not applicable for fiscal 2023.
Net Sales
Net sales for TJX Canada were $1.2$1 billion for the secondfirst quarter of fiscal 2023, an increase2024, a decrease of 22%4%, compared to $1.0$1.1 billion for the secondfirst quarter of fiscal 2022. 2023. This decrease in the first quarter reflects a negative foreign currency exchange rate impact of 7%, partially offset by a 2% increase in non-comp store sales and a 1% increase in comp store sales. The increase in comp store sales for the first quarter of fiscal 2024 was driven by an increase in customer traffic, partially offset by a decrease in average basket.
Segment Profit Margin
Segment profit margin decreased to 11.3% for the first quarter of fiscal 2024 compared to 11.7% for the same period last year. The decrease for the first quarter of fiscal 2024 was driven by expense deleverage on administrative costs and higher supply chain costs, which were partially offset by higher merchandise margin. Merchandise margin reflects favorable freight costs, partially offset by higher shrink accrual rates in the current year.


25


TJX International
 Thirteen Weeks Ended
U.S. dollars in millionsApril 29,
2023
April 30,
2022
Net sales$1,413 $1,417 
Segment profit (loss)$38 $13 
Segment profit margin2.7 %0.9 %
Comp store sales(a)
4 %N/A
Stores in operation at end of period:
T.K. Maxx632 623 
Homesense78 77 
T.K. Maxx Australia75 70 
Total785 770 
Selling square footage at end of period (in millions):
T.K. Maxx13 13 
Homesense1 
T.K. Maxx Australia1 
Total15 15 
(a)Comp store sales reported for fiscal 2024 and was not applicable for fiscal 2023.
Net Sales
Net sales for TJX CanadaInternational were $2.3$1.4 billion for the first six monthsquarter of fiscal 2023, an increase of 30%2024, flat compared to $1.8$1.4 billion for the first six monthsquarter of fiscal 2022. The2023. Net sales were flat due to a 4% increase in netcomp store sales reflects havingand a fully open2% increase in non-comp store base for all of the second quarter and first six months of fiscal 2023, compared to temporary store closures for 22% of the second quarter and 24% of the first six months of fiscal 2022 as a result of the COVID-19 pandemic, partiallysales offset by a negative impact due to foreign currency exchange rates forrate impact of 6% and 4% in the secondfirst quarter and first six months of fiscal 2023, respectively. In addition to stores being open for more days2024. The increase in the second quarter and first six months of fiscal 2023, netcomp store sales further increased due towas driven by an increase in both customer traffic and average basket driven by higher average ticket.basket.
E-commerce sales represented less than 4% of TJX International’s net sales for the first quarters of both fiscal 2024 and fiscal 2023.
Segment Profit Margin
Segment profit margin increased to 15.8%2.7% for the secondfirst quarter of fiscal 20232024 compared to 11.6% for the same period last year. Segment profit margin increased to 13.9% for the first six months of fiscal 2023 compared to 10.6% for the same period last year. The increase for the second quarter and first six months of fiscal 2023 was primarily driven by increased sales due to having a fully open store base compared to the temporary store closures in the same periods in fiscal 2022. This was partially offset by government programs received in the second quarter and first six months of fiscal 2022 that did not continue into fiscal 2023. Within merchandise margin, strong markon, lower markdowns and the benefits from our pricing initiative offset incremental freight costs in the second quarter of fiscal 2023. For the first six months of fiscal 2023, incremental freight costs more than offset strong markon and the benefits from our pricing initiative.


28


TJX International
 Thirteen Weeks EndedTwenty-Six Weeks Ended
U.S. dollars in millionsJuly 30,
2022
July 31,
2021
July 30,
2022
July 31,
2021
Net sales$1,503 $1,623 $2,920 $2,162 
Segment profit (loss)$105 $174 $118 $(48)
Segment profit margin7.0 %10.7 %4.0 %(2.2)%
Stores in operation at end of period:
T.K. Maxx626 616 
Homesense77 78 
T.K. Maxx Australia71 64 
Total774 758 
Selling square footage at end of period (in thousands):
T.K. Maxx12,590 12,373 
Homesense1,126 1,142 
T.K. Maxx Australia1,246 1,143 
Total14,962 14,658 
Net Sales
Net sales for TJX International were $1.5 billion for the second quarter of fiscal 2023, a decrease of 7% compared to $1.6 billion for the second quarter of fiscal 2022. The decrease in net sales was primarily due to a negative foreign currency exchange rate impact of 13% in the second quarter of fiscal 2023, partially offset by an increase in average basket primarily due to higher average ticket. Net sales for TJX International were $2.9 billion for the first six months of fiscal 2023, an increase of 35% compared to $2.2 billion for the first six months of fiscal 2022. The increase in net sales reflects having a fully open store base for all of the first six months of fiscal 2023, compared to temporary store closings of 37% of the first six months of fiscal 2022 as a result of the COVID-19 pandemic. In addition, net sales further increased due to an increase in average basket, partially offset by a negative impact due to foreign currency exchange rates of 14% in the first six months of fiscal 2023.
E-commerce sales were approximately 3% and 5% of TJX International’s net sales for the second quarters of fiscal 2023 and fiscal 2022, respectively and 3% and 7% for the first six months of the same periods. For the second quarter and first six months of fiscal 2022 temporary store closures due to the COVID-19 pandemic resulted in an increased e-commerce contribution.
Segment Profit Margin
Segment profit margin decreased to 7.0% for the second quarter of fiscal 2023 compared to 10.7% for the same period last year. This decrease primarily reflects government programs received in the second quarter of fiscal 2022 that did not continue into fiscal 2023, expense deleverage on occupancy and administrative costs and lower merchandise margin in fiscal 2023. Within merchandise margin, incremental freight costs and higher markdowns offset strong markon. The segment profit margin decrease was partially offset by lower third party storage costs.
Segment profit margin increased to 4.0% for the first six months of fiscal 2023 compared to loss of 2.2%0.9% for the same period last year. This increase wasis primarily due to higher merchandise margin driven by additional sales due to having a fully open store base forstrong markon and the first six monthsfavorable impact of fiscal 2023 compared to the temporary store closures in the same period in fiscal 2022 as well as lower COVID-related expenses in stores and distribution centers. This wastransactional foreign exchange, partially offset by government programs received in fiscal 2022 that did not continue into fiscal 2023higher administrative and lower merchandise margin in fiscal 2023. Within merchandise margin, strong markon was more than offset by higher markdowns and incremental freight costs.store payroll expenses.

29


GENERAL CORPORATE EXPENSE
Thirteen Weeks EndedTwenty-Six Weeks Ended Thirteen Weeks Ended
In millionsIn millionsJuly 30,
2022
July 31,
2021
July 30,
2022
July 31,
2021
In millionsApril 29,
2023
April 30,
2022
General corporate expenseGeneral corporate expense$189 $164 $266 $324 General corporate expense$156 $77 
General corporate expense for segment reporting purposes represents those costs not specifically related to the operations of our business segments. General corporate expenses are primarily included in SG&A expenses. The mark-to-market adjustment of our fuel and inventory hedges is included in cost of sales, including buying and occupancy costs.
The increase in general corporate expense for the secondfirst quarter of fiscal 20232024 was primarily driven by unfavorablethe mark-to-market adjustmentsadjustment on inventoryfuel and fuel hedges, partially offset by lower share-based and incentive compensation costs.
The decrease in general corporate expense for the first six months of fiscal 2023 was primarily driven by lower share-based incentive costs and the timing of contributions to TJX’s charitable foundations partially offset by unfavorable mark-to-market adjustments on inventory and fuel hedges.
26


ANALYSIS OF FINANCIAL CONDITION
Liquidity and Capital Resources
Our liquidity requirements have traditionally been funded through cash generated from operations, supplemented, as needed, by short-term bank borrowings and the issuance of commercial paper. As of July 30, 2022,April 29, 2023, there were no short-term bank borrowings or commercial paper outstanding. We have current maturities of long-term debt which will mature in the first half of fiscal 2024. We believe our existing cash and cash equivalents, internally generated funds and our credit facilities, under which facilities we have $1.5 billion available as of the period ended July 30, 2022,April 29, 2023, as described in Note I—Long-Term Debt and Credit Lines of Notes to Consolidated Financial Statements, are adequate to meet our operating needs for the foreseeable future.
As of July 30, 2022,April 29, 2023, we held $3.5$5 billion in cash. Approximately $1.2$1.1 billion of our cash was held by our foreign subsidiaries with $0.5$0.6 billion held in countries where we intend to indefinitely reinvest any undistributed earnings. We have provided for all applicable state and foreign withholding taxes on all undistributed earnings of our foreign subsidiaries in Canada, Puerto Rico, Italy, India, Hong Kong and Vietnam through July 30, 2022.April 29, 2023. If we repatriate cash from such subsidiaries, we should not incur additional tax expense and our cash would be reduced by the amount of withholding taxes paid.
We monitor debt financing markets on an ongoing basis and from time to time may incur additional long-term indebtedness depending on prevailing market conditions, liquidity requirements, existing economic conditions and other factors. In fiscal 20222024 we have used, and in the future we may againcontinue to use, operating cash flow and cash on hand to repay portions of our indebtedness, depending on prevailing market conditions, liquidity requirements, existing economic conditions, contractual restrictions and other factors. As such, we may, from time to time, seek to retire, redeem, prepay or purchase our outstanding debt through redemptions, cash purchases, prepayments, refinancings and/or exchanges, in open market purchases, privately negotiated transactions, by tender offer or otherwise. If we use our operating cash flow and/or cash on hand to repay our debt, it will reduce the amount of cash available for additional capital expenditures.
Operating Activities
Operating activities resulted in net cash inflows of $6 million$0.7 billion for the sixthree months ended July 30, 2022April 29, 2023 and $947 millionnet cash outflows of $0.6 billion for the sixthree months ended July 31, 2021.April 30, 2022.
Operating cash flows decreasedincreased compared to fiscal 2022,2023 primarily due to the change in merchandise inventories net of accounts payable, due to elevated inventories in the prior year attributable to larger in-transit inventory associated with the primary driver being a $0.9 billion decrease in accrued expenses, the largest component of which was lower incentive compensation costs.fiscal 2023 supply chain delays.
Investing Activities
Investing activities resulted in net cash outflows of $0.7 billion for the six months ended July 30, 2022 and $0.4 billion for the sixthree months ended July 31, 2021.April 29, 2023 and $0.3 billion for the three months ended April 30, 2022. The cash outflows for both periods were driven by capital expenditures.
Investing activities in the first sixthree months of fiscal 20232024 primarily reflected property additions for store improvements and renovations, investments in our new stores, store improvements and renovations as well as investments in our distribution centers and offices, including buying and merchandising systems and other information systems.technology. We anticipate that capital spending for the full fiscal year 20232024 will be approximately $1.7 billion to $1.9 billion. We plan to fund these expenditures with our existing cash balances and through cash flows from operations.internally generated funds.
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Financing Activities
Financing activities resulted in net cash outflows of $1.9$0.8 billion for the first sixthree months of fiscal 20232024 and net cash outflows of $3.9$0.9 billion for the sixfirst three months ended July 31, 2021.of fiscal 2023. The cash outflows for fiscal 2023both periods were primarily driven by equity repurchases and dividend payments.
Debt
The cash outflows in the first six months of fiscal 2022 were due to the completion of make-whole calls and the redemption at par of certain of our notes.
Our 2.50%$500 million 2.500% ten-year Notes due May 2023, will matureincluded within our current maturities of long-term debt as of April 29, 2023, were paid from operating funds during ourthe second quarter of fiscal 2024 and are included within our current maturities ofupon maturity. For further information regarding long-term debt, see Note I—Long-Term Debt and Credit Lines of Notes to Consolidated Financial Statements. We plan to repay this debt by cash generated from operations.
Equity
Under our stock repurchase programs, we paid $1.3$0.5 billion to repurchase and retire 21.56.4 million shares of our stock on a settlement basis in the first sixthree months of fiscal 2023.2024. As of July 30, 2022,April 29, 2023, approximately $2.5$3 billion remained available under our existing stock repurchase program.programs. We paid $0.3$0.6 billion to repurchase and retire 4.69.6 million shares of our stock on a settlement basis in the first sixthree months of fiscal 2022. 2023. We currently plan to repurchase approximately $2 billion to $2.5 billion of stock under our stock repurchase programs in fiscal 2024.
For further information regarding equity repurchases, see Note D – Capital Stock and Earnings Per Share of Notes to Consolidated Financial Statements.
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The Inflation Reduction Act of 2022, which became law in August 2022, levies a 1% excise tax on net stock repurchases after December 31, 2022. Beginning on January 1, 2023, these purchases are subject to the excise tax. The excise tax on the net stock repurchase portion of the IRA did not have a material impact on our results of operations or financial position in the first quarter of fiscal 2024. See Note J—Income Taxes of Notes to Consolidated Financial Statements for additional information.
Dividends
We declared quarterly dividends on our common stock of $0.3325 per share in the first three months of fiscal 2024 and $0.295 per share in the first sixthree months of fiscal 2023 and $0.26 per share in the first six months of fiscal 2022.2023. Cash payments for dividends on our common stock totaled $0.7$0.3 billion for both the first sixthree months of fiscal 20232024 and $0.6 billion for the first six months of fiscal 2022.2023.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
There have been no material changes to the critical accounting estimates as discussed in TJX's Annual Report on Form 10-K for the fiscal year ended January 29, 2022.28, 2023. For a discussion of accounting standards, see Note A—Basis of Presentation and Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements included in TJX’s Annual Report on Form 10-K for the fiscal year ended January 29, 202228, 2023 and Note A—Basis of Presentation and Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements in this Quarterly Report on Form 10-Q.
FORWARD-LOOKING STATEMENTS
Various statements made in this Quarterly Report on Form 10-Q 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 followingstatements, including, among others, statements regarding the Company's business plans, anticipated share repurchases, plans with respect to long-term indebtedness, and the Company's plans related to, and expected impact of, a pension payout offer. These statements are some oftypically accompanied by the factorswords “aim,” “anticipate,” “aspire,” “believe,” “continue,” “could,” “should,” “estimate,” “expect,” “forecast,” “goal,” “hope,” “intend,” “may,” “plan,” “project,” “potential,” “seek,” “strive,” “target,” “will,” “would,” or similar words, although not all forward-looking statements contain these identifying words. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from thethose expressed or implied by such forward-looking statements: the ongoing COVID-19 pandemicstatements. Applicable risks and associated containment and remediation efforts;uncertainties include, among others, execution of buying strategy and inventory management; various marketing efforts; customer trends and preferences; competition; various marketing efforts; operational and business expansion; management of large size and scale; merchandise sourcing and transport; data security and maintenance and development of information technology systems; labor costs and workforce challenges; personnel recruitment, training and retention; data security and maintenance and development of information technology systems; corporate and retail banner reputation; cash flow;evolving corporate governance and public disclosure regulations and expectations with respect to environmental, social and governance matters; expanding international operations; fluctuations in quarterly operating results and market expectations; inventory or asset loss; cash flow; mergers, acquisitions, or business investments and divestitures, closings or business consolidations; real estate activities; inventory or asset loss; economic conditions and consumer spending; market instability; severe weather, serious disruptions or catastrophic events; disproportionate impact of disruptions in the second half of the fiscal year; commodity availability and pricing; adverse or unseasonable weather; fluctuations in currency exchange rates; compliance with laws, regulations and orders and changes in laws, regulations and applicable accounting standards; outcomes of litigation, legal proceedings and other legal or regulatory matters; quality, safety and other issues with our merchandise; tax matters; and other factors that may be described in our filings with the Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K filed with the SecuritiesSEC. You are encouraged to read our filings with the SEC, available at www.sec.gov, for a discussion of these and Exchange Commission.other risks and uncertainties. We caution investors, potential investors and others not to place considerable reliance on the forward-looking statements contained in this Form 10-Q. The forward-looking statements in this report speak only as of the date of this Form 10-Q, and we do not undertake any obligation 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.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
There have been no material changes in our primary risk exposures or management of market risks from those disclosed in our Annual Report on Form 10-K for the fiscal year ended January 29, 202228, 2023.
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Item 4. Controls and Procedures
We have carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of July 30, 2022April 29, 2023 pursuant to Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of 1934, as amended (the “Act”). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective at the reasonable assurance level in ensuring that information required to be disclosed by us in the reports that we file or submit under the Act is (i) recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms; and (ii) accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosures. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of implementing controls and procedures.
ThereEffective January 29, 2023, we implemented a new financial application to simplify and standardize our global consolidated financial reporting process while enhancing and improving the control environment surrounding the Company's financial data and information. Except as described above, there were no changes in the Company’sour internal controlscontrol over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Act) during the fiscal quarter ended July 30, 2022April 29, 2023 identified in connection with the evaluation by our management, including our Chief Executive Officer and Chief Financial Officer, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II—OTHER INFORMATION
Item 1. Legal Proceedings
See Note K—Contingent Obligations, Contingencies, and Commitments of Notes to Consolidated Financial Statements for information on legal proceedings.
Item 1A. Risk Factors
There have been no material changes to the risk factors disclosed in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended January 29, 202228, 2023, as filed with the Securities Exchange Commission on March 30, 2022.29, 2023.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
INFORMATION ON SHARE REPURCHASES
The number of shares of common stock repurchased by TJX during the secondfirst quarter of fiscal 20232024 and the average price paid per share are as follows:
Total
Number of Shares
Repurchased(a)
Average Price Paid
Per Share(b)
Total Number of
Shares Purchased as
Part of Publicly
Announced
Plans or Programs(c)
Approximate Dollar
Value of Shares that
May Yet be
Purchased Under
the Plans or
Programs(c)
May 1, 2022 through May 28, 20222,006,088 $59.82 2,006,088 $3,073,792,904 
May 29, 2022 through July 2, 20226,198,528 $58.56 6,198,528 $2,710,792,381 
July 3, 2022 through July 30, 20223,644,832 $59.54 3,644,832 $2,493,792,375 
Total11,849,448 11,849,448 
Total
Number of Shares
Repurchased(a)
Average Price Paid
Per Share(b)
Total Number of
Shares Purchased as
Part of Publicly
Announced
Plans or Programs(c)
Approximate Dollar
Value of Shares that
May Yet be
Purchased Under
the Plans or
Programs(c)
January 29, 2023 through February 25, 20231,123,870 $80.08 1,123,870 $3,453,792,777 
February 26, 2023 through April 1, 20232,964,830 $75.89 2,964,830 $3,228,793,869 
April 2, 2023 through April 29, 20232,370,059 $78.06 2,370,059 $3,043,793,937 
Total6,458,759 6,458,759 
(a)Consists of shares repurchased under publicly announced stock repurchase programs.
(b)Includes commissions for the shares repurchased under stock repurchase programs.    
(c)In February 2022,2023, we announced that our Board of Directors had approved a new stock repurchase program that authorizesauthorized the repurchase of up to an additional $3.0$2 billion of our common stock from time to time. Under this program and a previously announced program, we had approximately $2.5$3 billion available for repurchase as of July 30, 2022.April 29, 2023.
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Item 6. Exhibits
Incorporate by Reference
Exhibit No.DescriptionFormExhibit No.Filing
 Date
10.1
10.2
10.3
31.1
31.2
32.1
32.2
101The following materials from The TJX Companies, Inc.’s Quarterly Report on Form 10-Q for the quarter ended July 30, 2022,April 29, 2023, formatted in Inline XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Shareholders’ Equity, and (vi) Notes to Consolidated Financial Statements.
104The cover page from The TJX Companies, Inc.’s Quarterly Report on Form 10-Q for the quarter ended July 30, 2022,April 29, 2023, formatted in Inline XBRL (included in Exhibit 101)
* Management contract or compensatory plan or arrangement.
** Schedules and certain portions of this exhibit are omitted pursuant to Item 601 of Regulation S-K. The Company agrees to furnish a supplemental copy of any omitted schedule or exhibit to the Securities and Exchange Commission upon request.


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934 the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
  THE TJX COMPANIES, INC.
  (Registrant)
Date: AugustMay 26, 20222023  
  /s/ Scott GoldenbergJohn Klinger
  Scott Goldenberg,John Klinger, Chief Financial Officer
  (Principal Financial and Accounting Officer)

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