Document and Company Informatio
Document and Company Information (USD $) | ||
9 Months Ended
Oct. 31, 2009 | Jul. 26, 2008
| |
Document and Company Information [Abstract] | ||
Entity Registrant Name | TJX COMPANIES INC /DE/ | |
Entity Central Index Key | 0000109198 | |
Document Type | 10-Q | |
Document Period End Date | 2009-10-31 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-30 | |
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 | 419,708,634 |
Statements of Income (Unaudited
Statements of Income (Unaudited) (USD $) | ||||
In Thousands, except Per Share data | 3 Months Ended
Oct. 31, 2009 | 3 Months Ended
Oct. 25, 2008 | 9 Months Ended
Oct. 31, 2009 | 9 Months Ended
Oct. 25, 2008 |
Net sales | $5,244,946 | $4,761,530 | $14,346,698 | $13,619,480 |
Cost of sales, including buying and occupancy costs | 3,802,179 | 3,536,990 | 10,609,827 | 10,261,376 |
Selling, general and administrative expenses | 864,097 | 807,833 | 2,390,030 | 2,303,155 |
Provision (credit) for Computer Intrusion related costs | 0 | (7,000) | 0 | (7,000) |
Interest expense, net | 12,665 | 5,449 | 28,515 | 9,764 |
Income from continuing operations before provision for income taxes | 566,005 | 418,258 | 1,318,326 | 1,052,185 |
Provision for income taxes | 218,206 | 164,141 | 499,752 | 387,995 |
Income from continuing operations | 347,799 | 254,117 | 818,574 | 664,190 |
(Loss) from discontinued operations, net of income taxes | 0 | (18,268) | 0 | (34,269) |
Net income | $347,799 | $235,849 | $818,574 | $629,921 |
Basic earnings per share: | ||||
Income from continuing operations | 0.82 | 0.61 | 1.95 | 1.58 |
(Loss) from discontinued operations, net of income taxes | $0 | -0.04 | $0 | -0.09 |
Net income | 0.82 | 0.57 | 1.95 | 1.49 |
Weighted average common shares - basic | 421,654 | 417,107 | 419,398 | 421,371 |
Diluted earnings per share: | ||||
Income from continuing operations | 0.81 | 0.58 | 1.91 | 1.5 |
(Loss) from discontinued operations, net of income taxes | $0 | -0.04 | $0 | -0.08 |
Net income | 0.81 | 0.54 | 1.91 | 1.42 |
Weighted average common shares - diluted | 428,092 | 440,749 | 430,136 | 445,763 |
Cash dividends declared per share | 0.12 | 0.11 | 0.36 | 0.33 |
Balance Sheets
Balance Sheets (USD $) | |||
In Thousands | Oct. 31, 2009
| Jan. 31, 2009
| Oct. 25, 2008
|
Current assets: | |||
Cash and cash equivalents | $1,445,648 | $453,527 | $387,351 |
Short-term investments | 76,643 | 0 | 0 |
Accounts receivable, net | 163,555 | 143,500 | 166,553 |
Merchandise inventories | 3,267,667 | 2,619,336 | 3,279,305 |
Prepaid expenses and other current assets | 259,357 | 274,091 | 331,519 |
Current deferred income taxes, net | 117,787 | 135,675 | 97,706 |
Total current assets | 5,330,657 | 3,626,129 | 4,262,434 |
Property at cost: | |||
Land and buildings | 277,586 | 280,278 | 279,247 |
Leasehold costs and improvements | 1,910,909 | 1,728,362 | 1,727,548 |
Furniture, fixtures and equipment | 3,019,725 | 2,784,316 | 2,718,860 |
Total property at cost | 5,208,220 | 4,792,956 | 4,725,655 |
Less accumulated depreciation and amortization | 2,947,688 | 2,607,200 | 2,561,323 |
Net property at cost | 2,260,532 | 2,185,756 | 2,164,332 |
Property under capital lease, net of accumulated amortization of $18,799; $17,124 and $16,565, respectively | 13,773 | 15,448 | 16,007 |
Other assets | 198,335 | 171,381 | 166,184 |
Goodwill and tradename, net of amortization | 179,767 | 179,528 | 179,459 |
TOTAL ASSETS | 7,983,064 | 6,178,242 | 6,788,416 |
Current liabilities: | |||
Current installments of long-term debt | 200,358 | 392,852 | 0 |
Obligation under capital lease due within one year | 2,309 | 2,175 | 2,132 |
Short-term debt | 0 | 0 | 105,930 |
Accounts payable | 1,838,558 | 1,276,098 | 1,758,242 |
Accrued expenses and other liabilities | 1,204,915 | 1,096,766 | 1,358,251 |
Total current liabilities | 3,246,140 | 2,767,891 | 3,224,555 |
Other long-term liabilities | 742,594 | 765,004 | 570,290 |
Non-current deferred income taxes, net | 263,066 | 127,008 | 99,795 |
Obligation under capital lease, less portion due within one year | 16,451 | 18,199 | 18,759 |
Long-term debt, exclusive of current installments | 774,306 | 365,583 | 748,607 |
SHAREHOLDERS' EQUITY | |||
Common stock, authorized 1,200,000,000 shares, par value $1, issued and outstanding 419,708,634; 412,821,592 and 416,340,031, respectively | 419,709 | 412,822 | 416,340 |
Additional paid-in capital | 34,719 | 0 | 0 |
Accumulated other comprehensive (loss) | (119,636) | (217,781) | (92,102) |
Retained earnings | 2,605,715 | 1,939,516 | 1,802,172 |
Total shareholders' equity | 2,940,507 | 2,134,557 | 2,126,410 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $7,983,064 | $6,178,242 | $6,788,416 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) (USD $) | |||
In Thousands, except Share data | Oct. 31, 2009
| Jan. 31, 2009
| Oct. 25, 2008
|
ASSETS | |||
Property under capital lease, accumulated amortization | $18,799 | $17,124 | $16,565 |
SHAREHOLDERS' EQUITY | |||
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 | 419,708,634 | 412,821,592 | 416,340,031 |
Common stock, shares outstanding | 419,708,634 | 412,821,592 | 416,340,031 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) (USD $) | ||
In Thousands | 9 Months Ended
Oct. 31, 2009 | 9 Months Ended
Oct. 25, 2008 |
Cash flows from operating activities: | ||
Net income | $818,574 | $629,921 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 318,940 | 301,025 |
Assets of discontinued operations disposed, net of cash | 0 | 31,328 |
Loss on property disposals and impairment charges | 6,764 | 22,504 |
Deferred income tax provision | 130,539 | 26,866 |
Amortization of share-based compensation expense | 40,831 | 38,096 |
Excess tax benefits from share-based compensation expense | (15,755) | (18,971) |
Changes in assets and liabilities: | ||
(Increase) in accounts receivable | (16,466) | (33,420) |
(Increase) in merchandise inventories | (577,469) | (736,768) |
Decrease (increase) in prepaid expenses and other current assets | 15,876 | (24,416) |
Increase in accounts payable | 522,079 | 349,702 |
Increase in accrued expenses and other liabilities | 82,156 | 157,928 |
Other | (36,848) | (16,960) |
Net cash provided by operating activities | 1,289,221 | 726,835 |
Cash flows from investing activities: | ||
Property additions | (318,948) | (443,008) |
Purchase of short-term investments | (199,839) | 0 |
Sales and maturities of short-term investments | 126,741 | 0 |
Proceeds from sale of discontinued operations, net of cash sold | 0 | 4,804 |
Cash payments for costs associated with sale of discontinued operations | 0 | (5,647) |
Other | (5,802) | 602 |
Net cash (used in) investing activities | (397,848) | (443,249) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 774,263 | 0 |
Principal payments on current portion of long-term debt | (193,573) | 0 |
Cash payments for debt issuance expenses | (7,202) | 0 |
Proceeds from borrowing of short-term debt | 0 | 105,930 |
Payments on capital lease obligation | (1,614) | (1,491) |
Cash payments for repurchase of common stock | (530,501) | (667,099) |
Proceeds from sale and issuance of common stock | 154,095 | 141,133 |
Excess tax benefits from share-based compensation expense | 15,755 | 18,971 |
Cash dividends paid | (147,403) | (131,136) |
Net cash provided by (used in) financing activities | 63,820 | (533,692) |
Effect of exchange rate changes on cash | 36,928 | (95,155) |
Net increase (decrease) in cash and cash equivalents | 992,121 | (345,261) |
Cash and cash equivalents at beginning of fiscal year | 453,527 | 732,612 |
Cash and cash equivalents at end of period | $1,445,648 | $387,351 |
Statement of Shareholders Equit
Statement of Shareholders Equity (Unaudited) (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 | 818,574 | 818,574 | |||
Gain due to foreign currency translation adjustments | 94,187 | 94,187 | |||
Recognition of unfunded post retirement liabilities | (1,212) | (1,212) | |||
Recognition of prior service cost and deferred gains | 5,170 | 5,170 | |||
Cash dividends declared on common stock | (152,375) | (152,375) | |||
Restricted stock awards granted | 466 | (466) | |||
Restricted stock awards granted, Shares | 466 | ||||
Amortization of share-based compensation expense | 40,831 | 40,831 | |||
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 | 7,193 | 158,995 | 166,188 | ||
Issuance of common stock under stock incentive plan and related tax effect, Shares | 7,193 | ||||
Common stock repurchased | (15,866) | (514,635) | (530,501) | ||
Common stock repurchased, Shares | (15,866) | ||||
Ending Balance at Oct. 31, 2009 | $419,709 | $34,719 | $2,605,715 | ($119,636) | $2,940,507 |
Shares, Ending Balance at Oct. 31, 2009 | 419,709 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
9 Months Ended
Oct. 31, 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 nine 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 $15.0million for the quarter ended October31, 2009 and $13.4million for the quarter ended October25, 2008. Total share-based compensation expense was $40.8million for the nine months ended October31, 2009 and $38.1million for the nine months ended October25, 2008. These amounts include stock option expense as well as restricted stock amortization. There were options to purchase 3.8million shares of common stock exercised during the third quarter and options to purchase 7.3million shares of common stock exercised for the nine months ended October31, 2009. There were options to purchase 28.7million shares of common stock outstanding as of October31, 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 sheet includes an accrual for in-transit inventory of $451.6million at October31, 2009 and $409.9million at October25, 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 guidance 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. The FASB provided guidelines for making fair value measurements more consistent with other guidance when the volume and level of activity of an asset or lia |
Discontinued Operations
Discontinued Operations | |
9 Months Ended
Oct. 31, 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. At October31, 2009, TJX remained contingently liable on eight Bobs Stores leases. TJX also reclassified the operating results of Bobs Stores for all periods prior to the sale to be 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 thirty-nine weeks ended October25, 2008 (in thousands): Thirteen Thirty-Nine Weeks Weeks Net sales $ 20,573 $ 148,040 Segment profit (loss) $ 1,234 $ (25,524 ) After- tax income (loss)from operations $ 687 $ (15,314 ) |
Commitments and Contingencies
Commitments and Contingencies | |
9 Months Ended
Oct. 31, 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 $25.2million at October31, 2009. As an estimate, the reserve is subject to uncertainty, 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: Thirty-Nine Weeks Ended October 31, October 25, In thousands 2009 2008 Balance at beginning of year $ 40,564 $ 46,076 Additions to the reserve charged to net income: Interest accretion 1,321 1,365 Cash charges against the reserve: Lease-related obligations (3,658 ) (5,873 ) Termination benefits and all other (41 ) Balance at end of period $ 38,186 $ 41,568 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 | |
9 Months Ended
Oct. 31, 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 October 31, October 25, In thousands 2009 2008 Net income $ 347,799 $ 235,849 Other comprehensive income (loss): Loss due to foreign currency translation adjustments, net of related tax effects (6,113 ) (146,869 ) Gain on net investment hedge contracts, net of related tax effects 87,982 Gain on cash flow hedge contract, net of related tax effects 530 Recognition of prior service cost and deferred gains (losses) 2,267 (92 ) Amount of cash flow hedge reclassified from other comprehensive income to net income (170 ) Total comprehensive income $ 343,953 $ 177,230 Thirty-Nine Weeks Ended October 31, October 25, In thousands 2009 2008 Net income $ 818,574 $ 629,921 Other comprehensive income (loss): Gain (loss)due to foreign currency translation adjustments, net of related tax effects 94,187 (147,841 ) Gain on net investment hedge contracts, net of related tax effects 84,853 Gain on cash flow hedge contract, net of related tax effects 856 Recognition of unfunded post retirement liabilities (1,212 ) Recognition of prior service cost and deferred gains (losses) 5,170 (905 ) Amount of cash flow hedge reclassified from other comprehensive income to net income (380 ) Total comprehensive income $ 916,719 $ 566,504 |
Earnings Per Share and Capital
Earnings Per Share and Capital Stock | |
9 Months Ended
Oct. 31, 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 October 31, October 25, In thousands, except per share data 2009 2008 Basic earnings per share Income from continuing operations $ 347,799 $ 254,117 Weighted average common shares outstanding for basic EPS 421,654 417,107 Basic earnings per share continuing operations $ 0.82 $ 0.61 Diluted earnings per share Income from continuing operations $ 347,799 $ 254,117 Add back: Interest expense on zero coupon convertible subordinated notes, net of income taxes 1,203 Income from continuing operations used for diluted EPS calculation $ 347,799 $ 255,320 Shares for basic and diluted earnings per share calculations: Weighted average common shares outstanding for basic EPS 421,654 417,107 Assumed conversion/exercise/vesting of: Stock options and awards 6,438 6,788 Zero coupon convertible subordinated notes 16,854 Weighted average common shares outstanding for diluted EPS 428,092 440,749 Diluted earnings per share continuing operations $ 0.81 $ 0.58 Thirty-Nine Weeks Ended October 31, October 25, In thousands, except per share data 2009 2008 Basic earnings per share Income from continuing operations $ 818,574 $ 664,190 Weighted average common shares outstanding for basic EPS 419,398 421,371 Basic earnings per share continuing operations $ 1.95 $ 1.58 Diluted earnings per share Income from continuing operations $ 818,574 $ 664,190 Add back: Interest expense on zero coupon convertible subordinated notes, net of income taxes 1,073 3,600 Income from continuing operations used for diluted EPS calculation $ 819,647 $ 667,790 Shares for basic and diluted earnings per share calculations: Weighted average common shares outstanding for basic EPS 419,398 421,371 Assumed conversion/exercise/vesting of: Stock options and awards 5,537 7,504 Zero coupon convertible subordinated notes 5,201 16,888 Weighted average common shares outstanding for diluted EPS 430,136 445,763 Diluted earnings per share continuing operations $ 1.91 $ 1.50 FASB guidance related to Participating Securities and Two-ClassOrdinary (Common) Shares was applicable for TJX beginning with the first quarter of fiscal 2010. The adoption 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 prices of which are in excess of the related |
Financial Instruments
Financial Instruments | |
9 Months Ended
Oct. 31, 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 October31, 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 swap agreements expire in December2009. 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 estimated diesel fuel consumption 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. The contracts outstanding at October31, 2009 covered a portion of the anticipated merchandise purchases for the remainder of fiscal 2010 and into fiscal 2011. 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 October31, 2009: Net Fair Value in Blended US$ at Contract Balance Sheet Asset (Liability) October In thousands Pay Receive Rate Location US$ US$ 31, 2009 Derivatives designated as hedging instruments Fair value hedges |
Segment Information
Segment Information | |
9 Months Ended
Oct. 31, 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 TJX Canada segment, and TJXs stores operated in Europe (T.K. Maxx and HomeSense) are reported in the TJX Europe 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 October 31, October 25, In thousands 2009 2008 Net sales: U.S. segments: Marmaxx $ 3,380,543 $ 3,058,207 HomeGoods 452,004 382,864 A.J. Wright 197,841 163,713 International segments: TJX Canada 611,485 576,971 TJX Europe 603,073 579,775 $ 5,244,946 $ 4,761,530 Segment profit (loss): U.S. segments: Marmaxx $ 422,754 $ 278,661 HomeGoods 39,454 14,675 A.J. Wright 1,273 (788 ) International segments: TJX Canada 113,011 109,782 TJX Europe 48,790 48,212 625,282 450,542 General corporate expenses 46,612 33,835 Provision (credit)for Computer Intrusion related costs (7,000 ) Interest expense, net 12,665 5,449 Income from continuing operations before provision for income taxes $ 566,005 $ 418,258 Thirty-Nine Weeks Ended October 31, October 25, In thousands 2009 2008 Net sales: U.S. segments: Marmaxx $ 9,464,356 $ 8,817,687 HomeGoods 1,256,736 1,096,726 A.J. Wright 559,162 478,432 International segments: TJX Canada 1,531,248 1,604,049 TJX Europe 1,535,196 1,622,586 $ 14,346,698 $ 13,619,480 Segment profit (loss): U.S. segments: Marmaxx $ 1,111,775 $ 855,222 HomeGoods 79,559 25,738 A.J. Wright 7,057 (2,438 ) International segments: TJX Canada 180,709 211,068 TJX Europe 82,803 63,420 1,461,903 1,153,010 General corporate expenses 115,062 98,061 Provision (credit)for Computer Intrusion related costs (7,000 ) Interest expense, net 28,515 9,764 Income from continuing operations before provision fo |
Pension Plans and Other Retirem
Pension Plans and Other Retirement Obligations | |
9 Months Ended
Oct. 31, 2009 USD / shares | |
Pension Plans and Other Retirement Obligations [Abstract] | |
Pension Plans & Other Retirement Obligations | Note H. Pension Plans and 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 October 31, October 25, October 31, October 25, In thousands 2009 2008 2009 2008 Service cost $ 6,406 $ 7,210 $ 274 $ 276 Interest cost 7,708 7,757 730 1,064 Expected return on plan assets (7,157 ) (8,594 ) Amortization of prior service cost 4 4 31 32 Recognized actuarial losses 3,439 285 671 Settlement cost 579 Total expense $ 10,400 $ 6,377 $ 1,899 $ 2,043 Pension Pension (Funded Plan) (Unfunded Plan) Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended October 31, October 25, October 31, October 25, In thousands 2009 2008 2009 2008 Service cost $ 22,537 $ 22,804 $ 821 $ 801 Interest cost 23,490 21,534 2,189 2,524 Expected return on plan assets (21,167 ) (25,777 ) Amortization of prior service cost 12 33 94 94 Recognized actuarial losses 10,242 854 953 Settlement cost 1,737 Total expense $ 35,114 $ 18,594 $ 5,695 $ 4,372 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 nine months ended October31, 2009, TJX has contributed $58million 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 and Credit Lines
Long Term Debt and Credit Lines | |
9 Months Ended
Oct. 31, 2009 USD / shares | |
Long-Term Debt and Credit Lines [Abstract] | |
Long-Term Debt & Credit Lines | Note I. Long-Term Debt and Credit Lines TJX has a $500million revolving credit facility maturing in May2010 and a $500million revolving credit facility maturing in 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 backup to TJXs commercial paper program. TJX had no borrowings outstanding at October31, 2009 and had $105.9million of commercial paper borrowings outstanding as of October25, 2008. The availability under revolving credit facilities was $1 billion at October31, 2009 and $894.1million at October25, 2008. On April7, 2009, TJX issued $375million aggregate principal amount of 6.95% ten-year notes and shortly thereafter called for the redemption of its zero coupon convertible subordinated notes, originally due in 2021. Virtually all of the subordinated notes were converted into 15.1million shares of TJX common stock by May8, 2009, at the rate of 32.667 shares per $1,000 note. TJX used 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 aggregate principal amount 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 December 15, 2009 at maturity. |
Income Taxes
Income Taxes | |
9 Months Ended
Oct. 31, 2009 USD / shares | |
Income Taxes [Abstract] | |
Income Taxes | Note J. Income Taxes TJX had unrecognized tax benefits of $119.9million as of October31, 2009 and $136.1million as of October25, 2008. The effective income tax rate was 38.6% for the fiscal 2010 third quarter compared to 39.2% for last years third quarter, primarily due to the unfavorable impact last year of foreign currency gains and losses on certain intercompany loans between TJX and Winners. The effective income tax rate for the nine months ended October31, 2009 was 37.9% as compared to 36.9% 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 exchange gains on certain intercompany loans. The nine months ended October25, 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. 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 $50.0million as of October 31, 2009 and $46.9million as of October25, 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 in 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 $5.0million to $70.0million. |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments | |
9 Months Ended
Oct. 31, 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 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 (exit price). Authoritative guidance 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 less 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: October 31, January 31, October 25, In thousands 2009 2009 2008 Level 1 Assets: Cash equivalents $ 830,405 $ 161,592 $ 60,893 Executive savings plan 52,981 40,636 39,771 Level 2 Assets: Foreign currency exchange contracts $ 5,855 $ 9,534 $ 154,838 Interest rate swaps 1,490 1,859 1,250 Liabilities: Foreign currency exchange contracts $ 4,594 $ 1,435 $ 65,777 Diesel fuel contracts 582 4,931 Interest rate swaps 386 The fair value of TJXs general corporate debt, including current installments, was estimated by obtaining market value quotes given the trading levels of other bonds of the same general issuer type and market perceived credit quality. The fair value of the current installments of long-term debt at October31, 2009 was $201.9million versus a carrying value of $200.4million. The fair value of long-term debt at that date was $853.5million versus a carrying value of $774.3million. These estimates do not necessarily reflect provisions or restrictions in the various debt agreements that might affect TJXs ability to settle these obligations. Our cash equivalents are stated at cost, which approximates fair value, due to the short maturities of these instruments. Our executive savings plan is invested in securities traded in active markets and carried at unadjusted quoted prices. As a result of its international operating and financing activities, TJX is exposed to market risks from changes in interest and foreign currency exchange rates, which may adversely affect its operating results and financial position. |