Document and Company Informatio
Document and Company Information (USD $) | ||
6 Months Ended
Aug. 01, 2009 | Jul. 26, 2008
| |
Document And Company Information [Abstract] | ||
Entity Registrant Name | TJX COMPANIES INC | |
Entity Central Index Key | 0000109198 | |
Document Type | 10-Q | |
Document Period End Date | 2009-08-01 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $13,553,030,893 | |
Entity Common Stock, Shares Outstanding | 423,853,927 |
Statements of Income
Statements of Income (USD $) | ||||
In Thousands, except Per Share data | 3 Months Ended
Aug. 01, 2009 | 3 Months Ended
Jul. 26, 2008 | 6 Months Ended
Aug. 01, 2009 | 6 Months Ended
Jul. 26, 2008 |
Net sales | $4,747,528 | $4,554,395 | $9,101,752 | $8,857,950 |
Cost of sales, including buying and occupancy costs | 3,534,302 | 3,447,443 | 6,807,648 | 6,724,386 |
Selling, general and administrative expenses | 790,876 | 766,936 | 1,525,933 | 1,495,322 |
Interest expense, net | 9,249 | 2,641 | 15,850 | 4,315 |
Income from continuing operations before provision for income taxes | 413,101 | 337,375 | 752,321 | 633,927 |
Provision for income taxes | 151,540 | 125,302 | 281,546 | 223,854 |
Income from continuing operations | 261,561 | 212,073 | 470,775 | 410,073 |
(Loss) from discontinued operations, net of income taxes | 0 | (11,850) | 0 | (16,001) |
Net income | $261,561 | $200,223 | $470,775 | $394,072 |
Basic earnings per share: | ||||
Income from continuing operations | 0.62 | 0.5 | 1.13 | 0.97 |
(Loss) from discontinued operations, net of income taxes | $0 | -0.02 | $0 | -0.04 |
Net income | 0.62 | 0.48 | 1.13 | 0.93 |
Weighted average common shares - basic | 423,891 | 421,289 | 418,212 | 423,454 |
Diluted earnings per share: | ||||
Income from continuing operations | 0.61 | 0.48 | 1.09 | 0.92 |
(Loss) from discontinued operations, net of income taxes | $0 | -0.03 | $0 | -0.04 |
Net income | 0.61 | 0.45 | 1.09 | 0.88 |
Weighted average common shares - diluted | 430,453 | 445,423 | 431,091 | 448,135 |
Cash dividends declared per share | 0.12 | 0.11 | 0.24 | 0.22 |
Balance Sheets
Balance Sheets (USD $) | |||
In Thousands | Aug. 01, 2009
| Jan. 31, 2009
| Jul. 26, 2008
|
Current assets: | |||
Cash and cash equivalents | $1,426,895 | $453,527 | $517,493 |
Short-term investments | 134,627 | 0 | 0 |
Accounts receivable, net | 145,387 | 143,500 | 141,826 |
Merchandise inventories | 3,100,175 | 2,619,336 | 3,104,817 |
Prepaid expenses and other current assets | 295,766 | 274,091 | 308,252 |
Current deferred income taxes, net | 108,852 | 135,675 | 93,851 |
Total current assets | 5,211,702 | 3,626,129 | 4,166,239 |
Property at cost: | |||
Land and buildings | 277,463 | 280,278 | 278,494 |
Leasehold costs and improvements | 1,865,203 | 1,728,362 | 1,854,524 |
Furniture, fixtures and equipment | 2,958,867 | 2,784,316 | 2,799,123 |
Total property at cost | 5,101,533 | 4,792,956 | 4,932,141 |
Less accumulated depreciation and amortization | 2,872,297 | 2,607,200 | 2,685,525 |
Net property at cost | 2,229,236 | 2,185,756 | 2,246,616 |
Property under capital lease, net of accumulated amortization of $18,240; $17,124 and $16,007, respectively | 14,332 | 15,448 | 16,565 |
Other assets | 200,951 | 171,381 | 183,155 |
Goodwill and tradename, net of amortization | 179,779 | 179,528 | 179,980 |
TOTAL ASSETS | 7,836,000 | 6,178,242 | 6,792,555 |
Current liabilities: | |||
Current installments of long-term debt | 418,943 | 392,852 | 0 |
Obligation under capital lease due within one year | 2,263 | 2,175 | 2,090 |
Accounts payable | 1,740,443 | 1,276,098 | 1,746,079 |
Accrued expenses and other liabilities | 1,067,862 | 1,096,766 | 1,236,136 |
Total current liabilities | 3,229,511 | 2,767,891 | 2,984,305 |
Other long-term liabilities | 753,254 | 765,004 | 744,032 |
Non-current deferred income taxes, net | 229,991 | 127,008 | 98,548 |
Obligation under capital lease, less portion due within one year | 17,045 | 18,199 | 19,308 |
Long-term debt, exclusive of current installments | 774,287 | 365,583 | 832,788 |
SHAREHOLDERS' EQUITY | |||
Common stock, authorized 1,200,000,000 shares, par value $1, issued and outstanding 423,853,927; 412,821,592 and 419,411,063, respectively | 423,854 | 412,822 | 419,411 |
Additional paid-in capital | 215,568 | 0 | 0 |
Accumulated other comprehensive (loss) | (115,791) | (217,781) | (33,483) |
Retained earnings | 2,308,281 | 1,939,516 | 1,727,646 |
Total shareholders' equity | 2,831,912 | 2,134,557 | 2,113,574 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $7,836,000 | $6,178,242 | $6,792,555 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) (USD $) | |||
In Thousands, except Share data | Aug. 01, 2009
| Jan. 31, 2009
| Jul. 26, 2008
|
Property under capital lease, accumulated amortization | $18,240 | $17,124 | $16,007 |
Common stock, shares authorized | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 |
Common stock, par value | 1 | 1 | 1 |
Common stock, shares issued | 423,853,927 | 412,821,592 | 419,411,063 |
Common stock, shares outstanding | 423,853,927 | 412,821,592 | 419,411,063 |
Statements of Cash Flows
Statements of Cash Flows (USD $) | ||
In Thousands | 6 Months Ended
Aug. 01, 2009 | 6 Months Ended
Jul. 26, 2008 |
Cash flows from operating activities: | ||
Net income | $470,775 | $394,072 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 209,420 | 199,795 |
Loss on property disposals and impairment charges | 867 | 21,644 |
Deferred income tax provision | 108,326 | 59,885 |
Amortization of share-based compensation expense | 25,859 | 24,699 |
Excess tax benefits from share-based compensation expense | (6,213) | (14,035) |
Changes in assets and liabilities: | ||
Decrease in accounts receivable | 1,573 | 1,279 |
(Increase) in merchandise inventories | (408,952) | (369,839) |
(Increase) in prepaid expenses and other current assets | (23,275) | (102,880) |
Increase in accounts payable | 422,565 | 230,879 |
(Decrease) increase in accrued expenses and other liabilities | (91,869) | 13,290 |
Other | (4,342) | 9,631 |
Net cash provided by operating activities | 704,734 | 468,420 |
Cash flows from investing activities: | ||
Property additions | (163,637) | (259,005) |
Purchase of short-term investments | (167,184) | 0 |
Sales and maturities of short-term investments | 42,756 | 0 |
Other | (5,438) | 398 |
Net cash (used in) investing activities | (293,503) | (258,607) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 774,263 | 0 |
Principal payments on current portion of long-term debt | (2,283) | 0 |
Cash payments for debt issuance expenses | (7,202) | 0 |
Payments on capital lease obligation | (1,065) | (984) |
Cash payments for repurchase of common stock | (236,713) | (448,574) |
Proceeds from sale and issuance of common stock | 68,790 | 99,685 |
Excess tax benefits from share-based compensation expense | 6,213 | 14,035 |
Cash dividends paid | (96,601) | (85,106) |
Net cash provided by (used in) financing activities | 505,402 | (420,944) |
Effect of exchange rate changes on cash | 56,735 | (3,988) |
Net increase (decrease) in cash and cash equivalents | 973,368 | (215,119) |
Cash and cash equivalents at beginning of fiscal year | 453,527 | 732,612 |
Cash and cash equivalents at end of period | $1,426,895 | $517,493 |
Statement of Shareholders Equit
Statement of Shareholders Equity (USD $) | |||||
In Thousands | Common Stock
| Additional Paid-in Capital
| Retained Earnings
| Accumulated Other Comprehensive Income (Loss)
| Total
|
Shares, Beginning Balance at Jan. 31, 2009 | 412,822 | ||||
Beginning Balance at Jan. 31, 2009 | $412,822 | $1,939,516 | ($217,781) | $2,134,557 | |
Comprehensive income: | |||||
Net income | 470,775 | 470,775 | |||
Gain due to foreign currency translation adjustments | 100,300 | 100,300 | |||
Recognition of unfunded post retirement liabilities | (1,212) | (1,212) | |||
Recognition of prior service cost and deferred gains | 2,902 | 2,902 | |||
Cash dividends declared on common stock | (102,010) | (102,010) | |||
Restricted stock awards granted | 466 | (466) | |||
Restricted stock awards granted, Shares | 466 | ||||
Amortization of share-based compensation expense | 25,859 | 25,859 | |||
Issuance of common stock upon conversion of convertible debt | 15,094 | 349,994 | 365,088 | ||
Issuance of common stock upon conversion of convertible debt, Shares | 15,094 | ||||
Issuance of common stock under stock incentive plan and related tax effect | 3,432 | 68,934 | 72,366 | ||
Issuance of common stock under stock incentive plan and related tax effect, Shares | 3,432 | ||||
Common stock repurchased | (7,960) | (228,753) | (236,713) | ||
Common stock repurchased, Shares | (7,960) | ||||
Ending Balance at Aug. 01, 2009 | $423,854 | $215,568 | $2,308,281 | ($115,791) | $2,831,912 |
Shares, Ending Balance at Aug. 01, 2009 | 423,854 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
6 Months Ended
Aug. 01, 2009 USD / shares | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note A. Summary of Significant Accounting Policies Basis of Presentation The consolidated interim financial statements are unaudited and, in the opinion of management, reflect all normal recurring adjustments, the use of retail statistics, and accruals and deferrals among periods required to match costs properly with the related revenue or activity, considered necessary by TJX for a fair presentation of its financial statements for the periods reported, all in accordance with generally accepted accounting principles consistently applied. The consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements, including the related notes, contained in TJXs Annual Report on Form 10-K for the fiscal year ended January31, 2009 (fiscal 2009). The results for the first six months are not necessarily indicative of results for the full fiscal year, because TJXs 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. Share-Based Compensation Total share-based compensation expense was $13.5million for the quarter ended August1, 2009 and $12.5million for the quarter ended July26, 2008. Total share-based compensation expense was $25.9million for the six months ended August1, 2009 and $24.7million for the six months ended July26, 2008. These amounts include stock option expense as well as restricted stock amortization. There were options to purchase 3.0million shares of common stock exercised during the second quarter and options to purchase 3.5million shares of common stock exercised for the six months ended August1, 2009. There were options to purchase 27.7million shares of common stock outstanding as of August1, 2009. Cash and Cash Equivalents TJX generally considers highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. Investments with maturities greater than three months but less than a year at the date of purchase are included in short-term investments. TJXs investments are primarily high-grade commercial paper, government and corporate bonds, institutional money market funds and time deposits with major banks. Merchandise Inventories TJX accrues for inventory purchase obligations at the time of shipment by the vendor. As a result, merchandise inventories on TJXs balance sheets include an accrual for in-transit inventory of $423.7million at August1, 2009 and $367.6million at July26, 2008. A liability for a comparable amount is included in accounts payable for the respective period. New Accounting Standards In April2009, the Financial Accounting Standards Board (FASB) issued three FASB Staff Positions (FSP) intended to provide additional application guidance and enhance disclosures regarding fair value measurements and impairments of securities, all of which are effective for interim and annual periods ending after June15, 2009. FSP Financial Accounting Standard (FAS) 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significant |
Discontinued Operations
Discontinued Operations | |
6 Months Ended
Aug. 01, 2009 USD / shares | |
Discontinued Operations [Abstract] | |
Discontinued Operations | Note B. Discontinued Operations In fiscal 2009, TJX sold Bobs Stores and recorded as a component of discontinued operations a loss on disposal (including expenses relating to the sale) of $19.0million, net of tax benefits of $13.0million. TJX remains contingently liable on eight Bobs Stores leases. TJX also reclassified the operating results of Bobs Stores for all periods prior to the sale as a component of discontinued operations. The following table presents the net sales, segment profit (loss)and after-tax income (loss)from operations reclassified to discontinued operations for the thirteen and twenty-six weeks ended July26, 2008 (in thousands): Thirteen Twenty-Six Weeks Weeks Net sales $ 66,897 $ 127,467 Segment loss $ (19,816 ) $ (26,758 ) Net loss $ (11,850 ) $ (16,001 ) |
Commitments and Contingencies
Commitments and Contingencies | |
6 Months Ended
Aug. 01, 2009 USD / shares | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note C. Commitments and Contingencies Provision for Computer Intrusion related costs TJX has a reserve for its estimate of the total probable losses arising from an unauthorized intrusion or intrusions (the intrusion or intrusions, collectively, the Computer Intrusion) into portions of its computer system, which was discovered late in fiscal 2007 and in which TJX believes customer data were stolen. The reserve balance was $27.2million at August1, 2009. As an estimate, the reserve is subject to uncertainty, and actual costs may vary from the current estimate and such variations may be material. TJX may decrease or increase the amount of the reserve to adjust for developments in litigation, claims and related expenses, insurance proceeds and changes in estimates. Reserve for Discontinued Operations TJX has a reserve for future obligations of discontinued operations that relates primarily to real estate leases associated with 34 discontinued A.J. Wright stores that were closed in the fourth quarter of fiscal 2007, three leases related to the sale of Bobs Stores and leases of other TJX businesses. The balance in the reserve and the activity for respective periods are presented below: Twenty-Six Weeks Ended August 1, July 26, In thousands 2009 2008 Balance at beginning of year $ 40,564 $ 46,076 Additions to the reserve charged to net income: Interest accretion 881 910 Cash charges against the reserve: Lease-related obligations (2,472 ) (3,501 ) Termination benefits and all other (33 ) Balance at end of period $ 38,940 $ 43,485 TJX may also be contingently liable on up to 15 leases of BJs Wholesale Club, a former TJX business, and on eight additional Bobs Stores leases. The reserve for discontinued operations does not reflect these leases because TJX does not believe that the likelihood of future liability to TJX is probable. |
Other Comprehensive Income
Other Comprehensive Income | |
6 Months Ended
Aug. 01, 2009 USD / shares | |
Other Comprehensive Income [Abstract] | |
Other Comprehensive Income | Note D. Other Comprehensive Income TJXs comprehensive income information is presented below: Thirteen Weeks Ended August 1, July 26, In thousands 2009 2008 Net income $ 261,561 $ 200,223 Other comprehensive income (loss): Gain (loss)due to foreign currency translation adjustments, net of related tax effects 71,823 (630 ) (Loss) on net investment hedge contracts, net of related tax effects (1,753 ) Gain on cash flow hedge contract, net of related tax effects 582 Recognition of prior service cost and deferred gains (losses) 1,220 (407 ) Amount of cash flow hedge reclassified from other comprehensive income to net income (276 ) Total comprehensive income $ 334,604 $ 197,739 Twenty-Six Weeks Ended August 1, July 26, In thousands 2009 2008 Net income $ 470,775 $ 394,072 Other comprehensive income (loss): Gain (loss)due to foreign currency translation adjustments, net of related tax effects 100,300 (972 ) (Loss) on net investment hedge contracts, net of related tax effects (3,129 ) Gain on cash flow hedge contract, net of related tax effects 326 Recognition of unfunded post retirement liabilities (1,212 ) Recognition of prior service cost and deferred gains (losses) 2,902 (813 ) Amount of cash flow hedge reclassified from other comprehensive income to net income (210 ) Total comprehensive income $ 572,765 $ 389,274 |
Earnings Per Share and Capital
Earnings Per Share and Capital Stock | |
6 Months Ended
Aug. 01, 2009 USD / shares | |
Earnings Per Share and Capital Stock [Abstract] | |
Earnings Per Share and Capital stock | Note E. Earnings Per Share and Capital Stock The computation of TJXs basic and diluted earnings per share (EPS)is as follows: Thirteen Weeks Ended August 1, July 26, In thousands, except per share data 2009 2008 Basic earnings per share Income from continuing operations $ 261,561 $ 212,073 Weighted average common shares outstanding for basic EPS 423,891 421,289 Basic earnings per share continuing operations $ 0.62 $ 0.50 Diluted earnings per share Income from continuing operations $ 261,561 $ 212,073 Add back: Interest expense on zero coupon convertible subordinated notes, net of income taxes 1 1,202 Income from continuing operations used for diluted EPS calculation $ 261,562 $ 213,275 Shares for basic and diluted earnings per share calculations: Weighted average common shares outstanding for basic EPS 423,891 421,289 Assumed conversion/exercise/vesting of: Stock options and awards 6,026 7,231 Zero coupon convertible subordinated notes 536 16,903 Weighted average common shares outstanding for diluted EPS 430,453 445,423 Diluted earnings per share continuing operations $ 0.61 $ 0.48 Twenty-Six Weeks Ended August 1, July 26, In thousands, except per share data 2009 2008 Basic earnings per share Income from continuing operations $ 470,775 $ 410,073 Weighted average common shares outstanding for basic EPS 418,212 423,454 Basic earnings per share continuing operations $ 1.13 $ 0.97 Diluted earnings per share Income from continuing operations $ 470,775 $ 410,073 Add back: Interest expense on zero coupon convertible subordinated notes, net of income taxes 1,073 2,397 Income from continuing operations used for diluted EPS calculation $ 471,848 $ 412,470 Shares for basic and diluted earnings per share calculations: Weighted average common shares outstanding for basic EPS 418,212 423,454 Assumed conversion/exercise/vesting of: Stock options and awards 5,077 7,778 Zero coupon convertible subordinated notes 7,802 16,903 Weighted average common shares outstanding for diluted EPS 431,091 448,135 Diluted earnings per share continuing operations $ 1.09 $ 0.92 FSP 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities, was applicable for TJX during the first quarter of fiscal 2010. The adoption of this FSP had no impact on TJXs financial statements. Weighted average common shares for diluted earnings per share exclude the incremental effect related to any outstanding stock options, the exercise price of which is |
Financial Instruments
Financial Instruments | |
6 Months Ended
Aug. 01, 2009 USD / shares | |
Financial Instruments [Abstract] | |
Financial Instruments | Note F. Financial Instruments TJX enters into financial instruments to manage its cost of borrowing and to manage its exposure to changes in fuel costs and foreign currency exchange rates. Interest Rate Contracts At August1, 2009, TJX had interest rate swap agreements outstanding with a notional amount of $100million. The agreements entitle TJX to receive biannual payments of interest at a fixed rate of 7.45% and to pay a floating rate of interest indexed to the six-month LIBOR rate with no exchange of the underlying notional amounts. The interest rate swap agreements converted a portion of TJXs long-term debt from a fixed-rate obligation to a floating-rate obligation. TJX designated the interest rate swap agreements as a fair value hedge of the related long-term debt. The interest rate swaps expire in December 2009. Diesel Fuel Contracts During fiscal 2009, TJX entered into agreements to hedge approximately 30% of its notional diesel fuel requirements for fiscal 2010, based on the diesel fuel consumed by independent freight carriers transporting the Companys inventory. These carriers charge TJX mileage surcharges for diesel fuel price increases as incurred by the freight carrier. The hedge agreements were 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 year. TJX elected not to apply hedge accounting rules to these contracts. All of the diesel fuel hedge agreements expire in February2010. Foreign Currency Contracts TJX enters into forward foreign currency exchange contracts to obtain economic hedges on firm U.S. dollar and Euro-denominated merchandise purchase commitments made by its Canadian and European operations. These commitments are typically six months or less in duration. The contracts outstanding at August1, 2009 covered certain commitments for the third and fourth quarters of fiscal 2010. TJX elected not to apply hedge accounting rules to these contracts. TJX also enters into derivative contracts, generally designated as fair value hedges, to hedge intercompany debt and intercompany interest payable. 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 which is reflected in selling, general and administrative expenses. Following is a summary of TJXs derivative financial instruments and related fair values outstanding at August1, 2009: Net Fair Value in Blended US$ at Contract Balance Sheet Asset (Liability) August In thousands Pay Receive Rate Location US$ US$ 1, 2009 Derivatives designated as hedging instrument under SFAS 133 Fair value hedges Interest rate swap fixed to f |
Segment Information
Segment Information | |
6 Months Ended
Aug. 01, 2009 USD / shares | |
Segment Information [Abstract] | |
Segment Information | Note G. Segment Information In the United States, T.J. Maxx and Marshalls stores are aggregated as the Marmaxx segment, and HomeGoods and A.J. Wright each is reported as a separate segment. TJXs stores operated in Canada (Winners and HomeSense) are reported in the Canadian segment and TJXs stores operated in Europe (T.K. Maxx and HomeSense) are reported in the European segment. TJX evaluates the performance of its segments based on segment profit or loss, which TJX defines as pre-tax income before general corporate expense and interest. Segment profit or loss as defined by TJX may not be comparable to similarly titled measures used by other entities. In addition, this measure of performance should not be considered an alternative to net income or cash flows from operating activities as an indicator of TJXs performance or as a measure of liquidity. Presented below is financial information on TJXs business segments: Thirteen Weeks Ended August 1, July 26, In thousands 2009 2008 Net sales: U.S. segments: Marmaxx $ 3,145,504 $ 2,957,190 HomeGoods 412,837 350,433 A.J. Wright 181,927 160,461 International segments: Canada 495,671 538,694 Europe 511,589 547,617 $ 4,747,528 $ 4,554,395 Segment profit (loss): U.S. segments: Marmaxx $ 358,351 $ 298,062 HomeGoods 24,532 2,169 A.J. Wright 1,371 (765 ) International segments: Canada 47,971 60,389 Europe 24,720 13,745 456,945 373,600 General corporate expenses 34,595 33,584 Interest expense, net 9,249 2,641 Income from continuing operations before provision for income taxes $ 413,101 $ 337,375 Twenty-Six Weeks Ended August 1, July 26, In thousands 2009 2008 Net sales: U.S. segments: Marmaxx $ 6,083,813 $ 5,759,480 HomeGoods 804,732 713,862 A.J. Wright 361,321 314,719 International segments: Canada 919,763 1,027,078 Europe 932,123 1,042,811 $ 9,101,752 $ 8,857,950 Segment profit (loss): U.S. segments: Marmaxx $ 689,021 $ 576,561 HomeGoods 40,105 11,063 A.J. Wright 5,784 (1,650 ) International segments: Canada 67,698 101,286 Europe 34,013 15,208 836,621 702,468 General corporate expenses 68,450 64,226 Interest expense, net 15,850 4,315 Income from continuing operations before provision for income taxes $ 752,321 $ 633,927 |
Pension Plans & Other Retiremen
Pension Plans & Other Retirement Obligations | |
6 Months Ended
Aug. 01, 2009 USD / shares | |
Pension Plans And Other Retirement Obligations [Abstract] | |
Pension Plans & Other Retirement Obligations | Note H. Pension Plans Other Retirement Obligations The following represents TJXs net periodic pension cost and related components: Pension Pension (Funded Plan) (Unfunded Plan) Thirteen Weeks Ended Thirteen Weeks Ended August 1, July 26, August 1, July 26, In thousands 2009 2008 2009 2008 Service cost $ 8,507 $ 7,797 $ 309 $ 263 Interest cost 7,734 6,888 720 730 Expected return on plan assets (7,511 ) (8,592 ) Amortization of prior service cost 4 15 31 31 Recognized actuarial losses 3,730 396 141 Settlement cost 840 Total expense $ 12,464 $ 6,108 $ 2,296 $ 1,165 Pension Pension (Funded Plan) (Unfunded Plan) Twenty-six Weeks Ended Twenty-six Weeks Ended August 1, July 26, August 1, July 26, In thousands 2009 2008 2009 2008 Service cost $ 16,132 $ 15,594 $ 547 $ 525 Interest cost 15,783 13,777 1,460 1,460 Expected return on plan assets (14,011 ) (17,183 ) Amortization of prior service cost 7 29 62 62 Recognized actuarial losses 6,803 570 282 Settlement cost 1,158 Total expense $ 24,714 $ 12,217 $ 3,797 $ 2,329 In fiscal 2009 the Pension Protection Act (PPA)became effective in the U.S., and TJXs policy is to fund, at a minimum, the amount required to maintain a funded status of 75% to 80% of the pension liability as defined by the PPA. During the first quarter ended May2, 2009, TJX contributed $50million to its funded plan and may make additional voluntary contributions during fiscal 2010. TJX anticipates making contributions of $13.1million to fund current benefit and expense payments under the unfunded plan in fiscal 2010. |
Long Term Debt & Credit Lines
Long Term Debt & Credit Lines | |
6 Months Ended
Aug. 01, 2009 USD / shares | |
Long Term Debt And Credit Lines [Abstract] | |
Long-Term Debt & Credit Lines | Note I. Long-Term Debt Credit Lines TJX has a $500million revolving credit facility maturing May2010 and a $500million revolving credit facility maturing May2011. TJX pays six basis points on an annual basis in commitment fees related to both of these facilities. These agreements have no compensating balance requirements and have various covenants including a requirement of a specified ratio of debt to earnings. These agreements serve as back up to TJXs commercial paper program. TJX had no borrowings outstanding at August1, 2009 or July26, 2008. The availability under revolving credit facilities was $1 billion at August1, 2009 and July26, 2008. On April7, 2009, TJX issued $375million of 6.95% ten-year notes and shortly thereafter called for the redemption of its zero coupon convertible subordinated notes, originally due in 2021. Upon our call for redemption, holders had the right to convert the notes into TJX common stock at a conversion rate of 32.667 shares per note. Virtually all of the subordinated notes were converted into 15.1million shares of TJX common stock, most during the second quarter of fiscal 2010. TJX has used, and expects to use, the remainder of the proceeds from the 6.95% notes offering to repurchase additional common stock under its stock repurchase program in fiscal 2010. On July23, 2009, TJX issued $400million of 4.20% six-year notes. TJX used a portion of the proceeds from the sale of the notes to refinance its C$235million term credit facility on August10, 2009, prior to its scheduled maturity, and expects to use the remainder, together with funds from operations to pay its $200million 7.45% notes due December15, 2009 at maturity. |
Income Taxes
Income Taxes | |
6 Months Ended
Aug. 01, 2009 USD / shares | |
Income Taxes [Abstract] | |
Income Taxes | Note J. Income Taxes TJX adopted the provisions of FASB Interpretation 48, Accounting for Uncertainty in Income Taxes (FIN 48), in the first quarter of fiscal 2008. TJX had unrecognized tax benefits of $129.7million as of August1, 2009 and $131.6million as of July26, 2008. The effective income tax rate was 36.7% for the second quarter this year compared to 37.1% for last years second quarter. The decrease in this rate for the second quarter was largely driven by the favorable impact this year due to the tax treatment of foreign currency gains and losses on certain intercompany loans between TJX and Winners. The effective income tax rate for the six months ended August1, 2009 was 37.4% as compared to 35.3% for last years comparable period as a result of the absence in fiscal 2010 of tax benefits included in the fiscal 2009 effective rate, partially offset by the favorable impact in the current year due to the tax treatment of foreign currency gains on certain intercompany loans. The six months ended July26, 2008 included a $15million reversal of several uncertain tax positions as a result of federal and state filings and a $4million benefit due to revised guidance on the deductibility of performance-based pay for executive officers and on tax benefits relating to TJXs Puerto Rican subsidiary. On a combined basis, these tax benefits reduced the fiscal 2009 six-month effective income tax rate by 3.4percentage points. TJX is subject to U.S. federal income tax as well as income tax in multiple state, local and foreign jurisdictions. In nearly all jurisdictions, the tax years through fiscal 2001 are no longer subject to examination. TJXs accounting policy classifies interest and penalties related to income tax matters as part of income tax expense. The accrued amounts for interest and penalties were $53.0million as of August 1, 2009 and $44.3million as of July26, 2008. Based on the outcome of tax examinations or judicial or administrative proceedings, or as a result of the expiration of statute of limitations in specific jurisdictions, it is reasonably possible that unrecognized tax benefits for certain tax positions taken on previously filed tax returns may change materially from those presented on the financial statements. During the next 12months, it is reasonably possible that tax examinations of prior years tax returns or judicial or administrative proceedings, that reflect such positions taken by TJX, may be finalized. As a result, the total net amount of unrecognized tax benefits may decrease, which would reduce the provision for taxes on earnings by a range of $2.0million to $70.0million. |
Disclosures About Fair Value Of
Disclosures About Fair Value Of Financial Instruments | |
6 Months Ended
Aug. 01, 2009 USD / shares | |
Disclosures About Fair Value Of Financial Instruments [Abstract] | |
Disclosures About Fair Value Of Financial Instruments | Note K. Disclosures about Fair Value of Financial Instruments In September2006, the FASB issued SFAS No.157, Fair Value Measurements, (SFAS 157), which establishes a common definition for fair value to be applied to U.S. GAAP requiring use of fair value, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. SFAS 157 was effective for financial assets and financial liabilities for fiscal years beginning after November15, 2007. Issued in February2008, FSP 157-1, Application of FASB Statement No.157 to FASB Statement No.13 and Other Accounting Pronouncements That Address Fair Value Measurements for Purposes of Lease Classification or Measurement under Statement 13 removed leasing transactions accounted for under FASB Statement No.13 and related guidance from the scope of SFAS 157. FSP 157-2, Partial Deferral of the Effective Date of Statement 157, deferred the effective date of SFAS 157 to fiscal years beginning after November15, 2008 for all nonfinancial assets and nonfinancial liabilities except for those that are recognized at fair value on a recurring basis (at least annually) to fiscal years beginning after November15, 2008. The implementation of SFAS 157 for financial assets and financial liabilities, effective January 27, 2008, did not have a material impact on TJXs consolidated financial position and results of operations. The implementation of SFAS 157 for nonfinancial assets and nonfinancial liabilities effective February1, 2009, did not have a material impact on TJXs financial condition, results of operations or cash flows. SFAS 157 defines fair value 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 (exit price). SFAS 157 classifies the inputs used to measure fair value 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. TJX endeavors to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. TJX has determined that its financial assets and liabilities are generally classified within level 1 or level 2 in the fair value hierarchy. The following table sets forth TJXs financial assets and liabilities that are accounted for at fair value on a recurring basis: August 1, January 31, July 26, In thousands 2009 2009 2008 Level 1 Assets: Cash equivalents $ 751,225 $ 161,592 $ 73,553 Executive savings plan 50,031 40 |