TJ Maxx 2011 Annual Report Download

Download and view the complete annual report

Please find the complete 2011 TJ Maxx annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 101

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101

THE TJX COMPANIES, INC.
2011 ANNUAL REPORT
35
YEARS
of
SUCCESSFUL
GROWTH
and
counting…

Table of contents

  • Page 1
    THE TJX COMPANIES, INC. 2011 ANNUAL REPORT 35 YEARS of SUCCESSFUL GROWTH and counting...

  • Page 2

  • Page 3
    ... what's next? More U.S./International Customers More Powerful Marketing More Brands More Vendors Faster-Turning Inventories Supply Chain Precision Exciting Store Locations Upgraded Shopping Experience Investing for the Future

  • Page 4
    ... The year 2011 marks the 16th consecutive year of earnings per share growth on a continuing operations basis. Overall, we netted a total of 46 additional stores to end the fiscal year with 2,905 stores, and we grew total square footage by 2%. (Excluding the impact of A.J. Wright store closings and...

  • Page 5
    ... opportunity for operating with leaner and even faster-turning inventories. Our distribution network and inventory planning systems are highly efficient, allowing us to tailor our merchandise mix for particular regions and customer preferences. One of our major areas of investment in 2012, which is...

  • Page 6

  • Page 7
    .... In 2012, we plan to net 150 new stores, growing square footage by 5%, and remodel stores throughout the Company more brands more vendors to continue to make shopping in our stores a truly great experience. U.S. and International Growth Opportunities Our vision to grow TJX to be a global, $40...

  • Page 8
    ... Marmaxx's new store performance over the last three years, which has been extraordinarily strong! vehicle in that country. Long term, we see the potential to grow TJX Canada overall to approximately 430 stores, with Marshalls being a 90 -100 store chain. At TJX Europe , we slowed growth in 2011 to...

  • Page 9
    ... will open in 2013, the first distribution center we have added to our TJX network in the U.S. in about 10 years, even with the growth we have achieved over that period. Another important investment area will be our TJX University to develop talent and the future leaders of our Company. As TJX grows...

  • Page 10

  • Page 11
    ... billion in cash from operations and spent a total of $1.4 billion to repurchase TJX stock, which was more than we originally planned, retiring 49.7 million shares, and increased the per-share dividend exciting store locations upgraded shopping experience 27%. In early 2012, we split the stock two...

  • Page 12
    ... BOARD Carol Meyrowitz CHIEF EXECUTIVE OFFICER 1 10 All earnings per share and share amounts reï¬,ect the 2-for-1 stock split which occurred in February 2012. On a GAAP basis, diluted earnings per share from continuing operations in fiscal 2012 increased 17% to $1.93 from $1.65 in fiscal 2011...

  • Page 13
    ... for buying agents, vendors and factory management in 10 countries. V. than three decades. Our high standards in this area are reï¬,ected in our Director Code of Business Conduct and Ethics, Code of Ethics for TJX Executives, and Global Associate Code of Conduct. In 2011, TJX's Board of Directors...

  • Page 14
    ...FY) Net Cash from Operating Activities Property Additions Share Repurchases Dividend Payments MARMAXX HOMEGOODS 1 Growing a Global, Off-Price/Value Company 1,867 2,300-2,400 374 750 216 240 WINNERS (CANADA) HOMESENSE (CANADA) 6 MARSHALLS (CANADA) T.K. MAXX (U.K. & IRELAND) 24 HOMESENSE (U.K.) 54...

  • Page 15
    ...CONTENTS PAGE Business Overview Store Locations Selected Financial Data Management's Discussion and Analysis Report of Independent Registered Public Accounting Firm Consolidated Financial Statements Notes to Consolidated Financial Statements: Selected Business Segment Financial Information Selected...

  • Page 16
    ... data is readily available for each year in the five-year period ended January 28, 2012. The graph assumes that $100 was invested on January 26, 2007, in each of TJX's common stock, the S&P Composite-500 Stock Index and the Dow Jones Apparel Retailers Index and that all dividends were reinvested.

  • Page 17
    ... defined in Rule 12b-2 of the Act). YES [ ] NO [ x ] The aggregate market value of the voting common stock held by non-affiliates of the registrant on July 30, 2011 was $20,932,228,111 based on the closing sale price as reported on the New York Stock Exchange. There were 746,702,028 shares (adjusted...

  • Page 18
    ... of Financial Condition and Results of Operations," and Item 8, "Financial Statements and Supplementary Data," and in our 2011 Annual Report to Shareholders under our letter to shareholders and our performance graphs. Forward-looking statements are inherently subject to risks, uncertainties and...

  • Page 19
    ... its 374 stores, the chain offers a broad array of home basics, giftware, accent furniture, lamps, rugs, wall décor, decorative accessories, children's furniture, seasonal and other merchandise. TJX Canada: - WINNERS: Acquired in 1990, Winners is the leading off-price apparel and home fashions...

  • Page 20
    ...banners and closing the remaining 72 stores, two distribution centers and home office. We continue to serve the customer demographic previously targeted by A.J. Wright through our other banners. Flexible Business Model: Our off-price business model is flexible, particularly for a company of our size...

  • Page 21
    ... customer-friendly return policies. We accept a variety of payment methods including cash, credit cards and debit cards. In the U.S., we offer a co-branded TJX credit card and a private label credit card, both through a bank, but do not own the customer receivables related to either program. We plan...

  • Page 22
    ...in their current geographies: Approximate Average Store Size (square feet) Number of Stores at Year End(1) Fiscal 2011 Fiscal 2012 Fiscal 2013 (estimated) Estimated Ultimate Number of Stores In the United States: T.J. Maxx Marshalls Marmaxx HomeGoods In Canada: Winners HomeSense Marshalls In Europe...

  • Page 23
    STORE LOCATIONS Our chains operated stores in the following locations as of January 28, 2012: Stores located in the United States: T.J. Maxx Marshalls HomeGoods Alabama Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Idaho Illinois Indiana Iowa Kansas...

  • Page 24
    ..., price, value, merchandise selection and freshness, brand-name recognition, service, reputation and store location. We compete with local, regional, national and international department, specialty, off-price, discount, warehouse and outlet stores as well as other retailers that sell apparel, home...

  • Page 25
    ...this annual report on Form 10-K. The risks that follow, individually or in the aggregate, are those that we think could cause our actual results to differ materially from those stated or implied in forward-looking statements. Failure to execute our opportunistic buying and inventory management could...

  • Page 26
    ... attract new customers in existing and new markets across demographics. In addition to the risks associated with finding appropriate locations and managing our existing business effectively, this growth strategy includes developing new ways to sell more or different categories of merchandise within...

  • Page 27
    ... sales, systems, distribution center and other associates in large numbers as well as experienced buying and management personnel. Many of our associates are in entry level or part-time positions with historically high rates of turnover. Availability and skill of associates may differ across markets...

  • Page 28
    ...-to-school and year-end holiday seasons. Any decrease in sales or margins during this period could have a disproportionately adverse effect on our results of operations. Adverse or unseasonable weather in the markets in which our stores operate or our distribution centers are located could adversely...

  • Page 29
    ... an important part of our marketing efforts and we expend resources building relationships with our customers through our print marketing, websites, social media and other means. We also develop private label brands for certain merchandise sold in our stores. Reputational value is based, in part, on...

  • Page 30
    ... rates, labor conditions, transport capacity and costs, systems issues, problems in third party distribution and warehousing and other interruptions of the supply chain, compliance with U.S. and foreign laws and regulations and other factors relating to international trade and imported merchandise...

  • Page 31
    ... or reduced margins. Fluctuations in foreign currency exchange rates may lead to lower revenues and earnings. In addition to our U.S. businesses, we operate stores in Canada and Europe and plan to continue to expand our international operations. Sales made by our stores outside the United States are...

  • Page 32
    ... and acquisitions and may acquire new businesses or divest, close or consolidate current businesses. Acquisition or divestiture activities may divert attention of management from operating the existing businesses. We may not effectively evaluate target companies or assess the risks, benefits and...

  • Page 33
    ...required to pay and our results of operations. In addition, we are subject to tax audits and examinations for payroll, value added, sales- based and other taxes relating to our businesses. Our real estate leases generally obligate us for long periods, which subjects us to various financial risks. We...

  • Page 34
    ... office locations as of January 28, 2012. Square footage information for the distribution centers represents total "ground cover" of the facility. Square footage information for office space represents total space occupied. DISTRIBUTION CENTERS Marmaxx: T.J. Maxx Worcester, Massachusetts...

  • Page 35
    ... States District Court for the Southern District of New York, 1:11-CV-08725, September 15, 2011; Luksza, et. al v. The TJX Companies, Inc., U.S. District Court, District of Nevada, 2:11-CV-01359, August 22, 2011; Ahmed v. T.J. Maxx Corp. et al., U.S. District Court, Eastern District of New York...

  • Page 36
    ..., 2012. All share and per share information has been retroactively adjusted to reflect the stock split. Price Range of Common Stock Our common stock is listed on the New York Stock Exchange (Symbol: TJX). The quarterly high and low sale prices for our common stock for fiscal 2012 and fiscal 2011 are...

  • Page 37
    Equity Compensation Plan Information The following table provides certain information as of January 28, 2012 with respect to our equity compensation plans: Number of securities to Weighted-average exercise Number of securities remaining be issued upon exercise price of outstanding available for ...

  • Page 38
    ...average shareholders' equity Total debt as a percentage of total capitalization(4) Stores in operation at fiscal year end: In the United States: T.J. Maxx Marshalls HomeGoods A.J. Wright(5) In Canada: Winners HomeSense Marshalls In Europe: T.K. Maxx HomeSense Total Selling Square Footage at year-end...

  • Page 39
    ... 90 to 100 store chain in Canada. We ended fiscal 2012 with six Canadian Marshalls stores and closed our three StyleSense stores to focus our shoe business on the much larger and more profitable shoe categories at Winners and Marshalls. • We slowed growth at TJX Europe in fiscal 2012 to permit the...

  • Page 40
    ... operate. - We continued to work to strengthen the execution of our business model of buying opportunistically and close to need, operating with lean inventories and rapid merchandise turns and controlling expenses. • Our fiscal 2012 pre-tax margin (the ratio of pre-tax income to net sales...

  • Page 41
    ...2012. The 4% same store sales increase in fiscal 2011 was driven entirely by growth in the number of transactions, with the value of the average transaction down slightly for the year. Juniors, jewelry and home performed particularly well in fiscal 2011. Geographically, in the U.S., same store sales...

  • Page 42
    ... selling, general and administrative expense ratio in fiscal 2012 compared to fiscal 2011 was due to increased general corporate expenses, primarily investment in new systems, talent and e-commerce, costs associated with a voluntary retirement program and fourth quarter charges and write-offs at TJX...

  • Page 43
    ... agreement between Canada and the United States (related to our intercompany transfer pricing) and a favorable Canadian court ruling regarding withholding taxes. We anticipate our effective annual income tax rate for fiscal 2013 will increase to 38.5% primarily due to the expiration of the U.S. Work...

  • Page 44
    ...per share data U.S.$ % of Net Sales Adjustments Fiscal year ended 2012 As adjusted U.S.$* % of Net Sales Net sales Cost of sales, including buying and occupancy costs Gross profit margin Selling, general and administrative expenses Income from continuing operations before provision for income taxes...

  • Page 45
    ...Year Ended January Dollars in millions 2012 2011 2010 Net sales Segment profit Segment profit as a percentage of net sales Adjusted segment profit as a percentage of net sales* Percent increase in same store sales Stores in operation at end of period T.J. Maxx Marshalls Total Marmaxx Selling square...

  • Page 46
    ... customers to other chains, A.J. Wright was not treated as a discontinued operation for financial reporting purposes. Dollars in millions Fiscal Year Ended January 2012 2011 2010 Net sales Segment profit (loss) Percent increase in same store sales Stores in operation at end of period Selling square...

  • Page 47
    ...140,601 TJX Canada U.S. Dollars in millions Fiscal Year Ended January 2012 2011 2010 Net sales Segment profit Segment profit as a percentage of net sales Percent (decrease) increase in same store sales Stores in operation at end of period Winners HomeSense Marshalls Total Selling square footage at...

  • Page 48
    ... TJX Europe U.S. Dollars in millions Fiscal Year Ended January 2012 2011 2010 Net sales Segment profit Segment profit as a percentage of net sales Percent increase (decrease) in same store sales Stores in operation at end of period T.K. Maxx HomeSense Total Selling square footage at end of period...

  • Page 49
    ...our distribution centers, primarily due to higher pack-away inventory as we continued to take advantage of market opportunities. The average inventory in our stores at the end of fiscal 2012 was below fiscal 2011 levels. The additional cash outlay for the net change in inventory and accounts payable...

  • Page 50
    ...415 million for our offices and distribution centers (including information systems) to support growth, $305 million for store renovations and $180 million for new stores. We plan to fund these expenditures through internally generated funds. We also purchased short-term investments that had initial...

  • Page 51
    ..., real estate taxes, other operating expenses and, in some cases, rentals based on a percentage of sales; these items totaled approximately one-third of the total minimum rent for fiscal 2012. Purchase obligations include obligations under purchase orders for merchandise, capital items, supplies and...

  • Page 52
    ...based on market interest rates, and our estimated long-term rate of return, which can differ considerably from actual returns, are two factors that can have a significant impact on the annual cost of retirement benefits and the funded status of our qualified pension plan. When the market performance...

  • Page 53
    ... our pre-tax income for fiscal 2012 by approximately $42 million. INTEREST RATE RISK Our cash equivalents, short-term investments and certain lines of credit bear variable interest rates. Changes in interest rates affect interest earned and paid by us. In addition, changes in the gross amount of...

  • Page 54
    ... the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this report pursuant to Rules 13a-15 and 15d-15 of the Exchange Act. Based upon that evaluation, our Chief Executive Officer...

  • Page 55
    ...policies or procedures may deteriorate. Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of January 28, 2012 based...

  • Page 56
    ... January 2012. President, HomeGoods from 2010 to January 2012. Chief Operating Officer, Marmaxx from 2007 until 2010. Various merchandising positions at TJX since 1992. Senior Executive Vice President, Group President, since February 2011. Group President from 2010 to 2011. President, HomeGoods from...

  • Page 57
    The executive officers hold office until the next annual meeting of the Board in June 2012 and until their successors are elected and qualified. TJX will file with the Securities and Exchange Commission a definitive proxy statement no later than 120 days after the close of its fiscal year ended ...

  • Page 58
    ... and Qualifying Accounts Balance Beginning of Period Amounts Charged to Net Income Write-Offs Against Reserve Balance End of Period In thousands Sales Return Reserve: Fiscal Year Ended January 28, 2012 Fiscal Year Ended January 29, 2011 Fiscal Year Ended January 30, 2010 Reserves Related to Former...

  • Page 59
    ...Paul Sweetenham and TJX Europe is filed herewith.* The Employment Agreement dated January 28, 2011 between Michael MacMillan and TJX is incorporated herein by reference to Exhibit 10.8 to the Form 10-K filed for the year ended January 29, 2011. The Letter Agreement dated January 10, 2012 between and...

  • Page 60
    ... of Performance-Based Deferred Stock Award Granted Under the Stock Incentive Plan is incorporated herein by reference to Exhibit 10.14 to the Form 10-K filed for the fiscal year ended January 30, 2010.* Description of Director Compensation Arrangements is filed herewith.* The Long Range Performance...

  • Page 61
    ... fiscal year ended January 29, 2005.* Subsidiaries of TJX, filed herewith. Consent of Independent Registered Public Accounting Firm is filed herewith. Power of Attorney given by the Directors and certain Executive Officers of TJX is filed herewith. Certification Statement of Chief Executive Officer...

  • Page 62
    ... 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. By /s/ Scott Goldenberg Scott Goldenberg, Chief Financial Officer (Principal Financial and Accounting Officer) Dated: March 27, 2012...

  • Page 63
    ... of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the date indicated. /s/ CAROL MEYROWITZ Carol Meyrowitz, Chief Executive Officer and Director (Principal Executive Officer) ZEIN ABDALLA* Zein...

  • Page 64
    ... Registered Public Accounting Firm ...Consolidated Financial Statements: Consolidated Statements of Income for the fiscal years ended January 28, 2012, January 29, 2011 and January 30, 2010 ...Consolidated Balance Sheets as of January 28, 2012 and January 29, 2011 ...Consolidated Statements of Cash...

  • Page 65
    ... financial position of The TJX Companies, Inc. and its subsidiaries (the "Company") at January 28, 2012, and January 29, 2011, and the results of their operations and their cash flows for each of the three years in the period ended January 28, 2012 in conformity with accounting principles generally...

  • Page 66
    ... STATEMENTS OF INCOME Fiscal Year Ended Amounts in thousands except per share amounts January 28, 2012 January 29, 2011 January 30, 2010 Net sales Cost of sales, including buying and occupancy costs Selling, general and administrative expenses Provision (credit) for Computer Intrusion related...

  • Page 67
    ... Fiscal Year Ended Amounts in thousands except share amounts January 28, 2012 January 29, 2011 ASSETS Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net Merchandise inventories Prepaid expenses and other current assets Current deferred income taxes, net Total...

  • Page 68
    ...Cash payments for repurchase of common stock Proceeds from issuance of common stock Excess tax benefits from share-based compensation Cash dividends paid Net cash (used in) financing activities Effect of exchange rate changes on cash Net (decrease) increase in cash and cash equivalents Cash and cash...

  • Page 69
    ... post retirement obligations Total comprehensive income Cash dividends declared on common stock Recognition of share-based compensation Issuance of common stock under stock incentive plan and related tax effect Common stock repurchased Balance, January 29, 2011 Comprehensive income: Net income...

  • Page 70
    ... amounts of revenues and expenses during the reporting period. TJX considers its accounting policies relating to inventory valuation, impairments of long-lived assets, retirement obligations, share-based compensation, reserves for uncertain tax positions, reserves for former operations and loss...

  • Page 71
    ... 5, 2012, TJX announced that its Board of Directors approved a two-for-one stock split of the Company's common stock in the form of a stock dividend. One additional share was paid for each share held by holders of record as of the close of business on January 17, 2012. The shares were distributed on...

  • Page 72
    ... 83%-owned subsidiary and represents goodwill associated with the T.J. Maxx chain. In addition, goodwill includes the excess of cost over the estimated fair market value of the net assets of Winners acquired by TJX in fiscal 1991. Goodwill totaled $72.2 million as of January 28, 2012, $72.2 million...

  • Page 73
    ...into T.J. Maxx, Marshalls or HomeGoods stores and close A.J. Wright's remaining 72 stores, two distribution centers and home office. The liquidation process commenced in the fourth quarter of fiscal 2011 and was completed during the first quarter of fiscal 2012. Even though the A.J. Wright chain was...

  • Page 74
    ... impairment charges relate to furniture and fixtures and leasehold improvements that were disposed of and deemed to have no value, as well as A.J. Wright's two owned distribution centers. The distribution centers were closed prior to the end of fiscal 2011, were held for sale during fiscal 2012 and...

  • Page 75
    ... 5, 2012, TJX announced that its Board of Directors approved a two-for-one stock split of the Company's common stock in the form of a stock dividend. One additional share was paid for each share held by holders of record as of the close of business on January 17, 2012. The shares were distributed on...

  • Page 76
    ... outstanding stock options if the assumed proceeds per share of the option is in excess of the related fiscal period's average price of TJX's common stock. Such options are excluded because they would have an antidilutive effect. There were no such options excluded at the end of fiscal 2012 or 2011...

  • Page 77
    ... payable by TJX) by setting a fixed price per gallon for the period being hedged. TJX elected not to apply hedge accounting rules to these contracts. The change in the fair value of the hedge agreements resulted in income of $0.95 million in fiscal 2012, income of $1.2 million in fiscal 2011...

  • Page 78
    ..., related fair value and balance sheet classification at January 29, 2011: Net Fair Value in Balance Current Current US$ at Sheet Asset (Liability) January 29, Location US$ US$ 2011 In thousands Pay Blended Contract Receive Rate Fair value hedges: Intercompany balances, primarily short-term debt...

  • Page 79
    .... TJX's cash equivalents are stated at cost, which approximates fair value, due to the short maturities of these instruments. Investments designed to meet obligations under the Executive Savings Plan are invested in securities traded in active markets and are recorded at unadjusted quoted prices...

  • Page 80
    ...% of our sales from clothing (including footwear), 27% from home fashions and 13% from jewelry and accessories in fiscal 2012. TJX evaluates the performance of its segments based on "segment profit or loss," which it defines as pre-tax income before general corporate expense, provision (credit) for...

  • Page 81
    ... information related to our business segments: January 28, 2012 Fiscal Year Ended January 29, 2011 January 30, 2010 In thousands Net sales: In the United States Marmaxx HomeGoods A.J. Wright(1) TJX Canada TJX Europe Segment profit (loss): In the United States Marmaxx HomeGoods A.J. Wright(1) TJX...

  • Page 82
    ... period starting one year after the grant, and have a ten-year maximum term. The fair value of options is estimated as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: 2012 Fiscal Year 2011 2010 Risk-free interest rate Dividend yield...

  • Page 83
    .... As of the end of fiscal 2012, a total of 232,434 of these deferred shares were outstanding under the plan. Note J. Pension Plans and Other Retirement Benefits Pension: TJX has a funded defined benefit retirement plan which covers a majority of its full-time U.S. employees hired prior to February...

  • Page 84
    ... information relating to TJX's funded defined benefit retirement plan (funded plan) and its unfunded supplemental pension plan (unfunded plan) for the fiscal years indicated: Funded Plan Fiscal Year Ended January 28, January 29, 2012 2011 Unfunded Plan Fiscal Year Ended January 28, January 29, 2012...

  • Page 85
    ...Citigroup Pension Liability Index. TJX made aggregate cash contributions of $78.4 million in fiscal 2012, $103.4 million in fiscal 2011 and $147.9 million in fiscal 2010 to the defined benefit retirement plan and to fund current benefit and expense payments under the unfunded plan. TJX's policy with...

  • Page 86
    ... income related to our pension plans: Funded Plan Fiscal Year Ended January 28, January 29, January 30, 2012 2011 2010 Unfunded Plan Fiscal Year Ended January 28, January 29, January 30, 2012 2011 2010 Dollars in thousands Net periodic pension cost: Service cost Interest cost Expected return...

  • Page 87
    ... value for the year ended January 28, 2012: In thousands Common/Collective Trusts Limited Partnerships Balance as of January 30, 2010 Earned income, net of management expenses Unrealized gain on investment Purchases, sales, issuances and settlements, net Balance as of January 29, 2011 Earned income...

  • Page 88
    ... date for the fiscal years presented: Actual Allocation for Fiscal Year Ended January 28, January 29, 2012 2011 Target Allocation Equity securities Fixed income All other-primarily cash 50% 50% - 44% 46% 10% 43% 41% 16% We employ a total return investment approach whereby a mix of equities and...

  • Page 89
    ... income in fiscal 2013. During fiscal 2012, there was a pre-tax net benefit of $3.4 million reflected in the consolidated statements of income as it relates to this post retirement medical plan. Note K. Long-Term Debt and Credit Lines The table below presents long-term debt, exclusive of current...

  • Page 90
    ... that were not converted. Prior to fiscal 2010, a total of 52,557 notes were either converted into common shares of TJX or put back to TJX. TJX traditionally has funded seasonal merchandise requirements through cash generated from operations, short-term bank borrowings and the issuance of short...

  • Page 91
    ... Fiscal Year Ended January 28, January 29, 2012 2011 In thousands Deferred tax assets: Foreign tax credit carryforward Reserve for former operations Pension, stock compensation, postretirement and employee benefits Leases Foreign currency and hedging Computer Intrusion reserve Other Total deferred...

  • Page 92
    ..., the tax years through fiscal 2001 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 amount of interest and penalties expensed was $5.8 million for the year ended January 28, 2012...

  • Page 93
    ...: Fiscal Year Ended January 28, January 29, 2012 2011 In thousands Employee compensation and benefits, current Computer Intrusion reserve Reserve for former operations - short term Rent, utilities and occupancy, including real estate taxes Merchandise credits and gift certificates Insurance Sales...

  • Page 94
    ... the ordinary course of business. Among these, TJX is a defendant in several lawsuits filed in federal and state courts in California, Nevada, New York and Texas purportedly brought as class or collective actions on behalf of various groups of current and former salaried and hourly associates in the...

  • Page 95
    TJX's cash payments for interest and income taxes and non-cash investing and financing activities are as follows: January 28, 2012 Fiscal Year Ended January 29, January 30, 2011 2010 In thousands Cash paid for: Interest on debt Income taxes Changes in accrued expenses due to: Dividends payable ...

  • Page 96
    ...-for-one stock split announced by TJX on January 5, 2012. See Note A. (4) The fourth quarter of fiscal 2011 income from continuing operations includes a pre-tax $141 million negative impact from the A.J. Wright segment, or $0.11 per share (see Note C). The second quarter of fiscal 2011 income from...

  • Page 97
    ...Inc. David T. Ching Senior Vice President and Chief Information Officer, Safeway Inc. Michael F. Hines Former Executive Vice President and Chief Financial Officer, Dick's Sporting Goods, Inc. Amy B. Lane Retired Managing Director, Global Retailing Investment Banking Group, Merrill Lynch & Co., Inc...

  • Page 98
    ... Development George Wilson Corporate Controller Barry Zelman Brand Development DIVISIONAL LEADERSHIP The Marmaxx Group* Richard Sherr TJX Group President HomeGoods Nan Stutz TJX Group President Ken Canestrari President TJX Canada** Nan Stutz TJX Group President Douglas Mizzi President TJX Europe...

  • Page 99
    ... Relations Analysts and investors seeking financial data about the Company are asked to visit our corporate website at www.tjx.com or to contact: Sherry Lang Senior Vice President, Global Communications 508-390-2323 Executive Offices Framingham, Massachusetts 01701 Public Information and SEC...

  • Page 100
    ...jewelry and accessories departments and in some stores, The Runway, a high-end designer department. T.J. Maxx stores average approximately 29,000 square feet in size. Winners is the leading off-price family apparel and home fashions retailer in Canada, acquired by TJX in 1990. Select Winners stores...

  • Page 101
    The TJX Companies, Inc. 770 Cochituate Road Framingham, MA 01701 508-390-1000 www.tjx.com