TJX COMPANIES INC /DE/ [TJX] Filings

10-Q 1 tjx-20220430.htm 10-Q tjx-20220430

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(mark one)


☒			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended April 30, 2022


☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission file number 1-4908

The TJX Companies, Inc.

(Exact name of registrant as specified in its charter)


Delaware						04-2207613
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

770 Cochituate Road Framingham, Massachusetts						01701
(Address of principal executive offices)						(Zip Code)

(508) 390-1000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $1.00 per share	TJX	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒

The number of shares of registrant’s common stock outstanding as of May 20, 2022: 1,171,635,933

The TJX Companies, Inc.

TABLE OF CONTENTS


PART I
ITEM 1. Consolidate d Financial Statements			3
Consolidated Statements of Income			3
Consolidated Statements of Comprehensive Income			4
Consolidated Balance Sheets			5
Consolidated Statements of Cash Flows			6
Consolidated Statements of Shareholders' Equity			7
Notes To Consolidated Financial Statements			8
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			19
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk			28
ITEM 4. Controls and Procedures			28

PART II
ITEM 1. Legal Proceedings			29
ITEM 1A. Risk Factors			29
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds			29
ITEM 6. Exhibits			29

SIGNATURE			30

PART I - FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

THE TJX COMPANIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

IN THOUSANDS EXCEPT PER SHARE AMOUNTS


	Thirteen Weeks Ended
	April 30, 2022		May 1, 2021
Net sales	$	11,406,474	$	10,086,661
Cost of sales, including buying and occupancy costs	8,223,213		7,255,635





Selling, general and administrative expenses	2,094,582		2,064,992
Impairment on equity investment	217,619		—



Interest expense, net	18,785		44,688
Income before income taxes	852,275		721,346
Provision for income taxes	264,802		187,416
Net income	$	587,473	$	533,930
Basic earnings per share	$	0.50	$	0.44
Weighted average common shares – basic	1,177,141		1,205,439
Diluted earnings per share	$	0.49	$	0.44
Weighted average common shares – diluted	1,189,263		1,221,517

The accompanying notes are an integral part of the unaudited consolidated financial statements.

THE TJX COMPANIES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

IN THOUSANDS


	Thirteen Weeks Ended
	April 30, 2022		May 1, 2021
Net income	$	587,473	$	533,930
Additions to other comprehensive (loss) income:
Foreign currency translation adjustments, net of related tax benefit of $574 in fiscal 2023 and tax provision of $2,898 in fiscal 2022	(57,612)		22,249
Reclassifications from other comprehensive (loss) income to net income:

Amortization of prior service cost and deferred gains/losses, net of related tax provisions of $1,375 in fiscal 2023 and $1,056 in fiscal 2022	3,778		2,901
Amortization of loss on cash flow hedge, net of related tax provision of $603 in fiscal 2022	—		(263)
Other comprehensive (loss) income, net of tax	(53,834)		24,887
Total comprehensive income	$	533,639	$	558,817

The accompanying notes are an integral part of the unaudited consolidated financial statements.

THE TJX COMPANIES, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

IN THOUSANDS, EXCEPT SHARE DATA


	April 30, 2022		January 29, 2022		May 1, 2021
Assets
Current assets:
Cash and cash equivalents	$	4,295,068	$	6,226,765	$	8,775,485

Accounts receivable, net	576,300		517,623		621,177
Merchandise inventories	6,989,788		5,961,573		5,114,643
Prepaid expenses and other current assets	565,351		438,099		440,533
Federal, state and foreign income taxes recoverable	53,715		114,537		64,211
Total current assets	12,480,222		13,258,597		15,016,049
Net property at cost	5,289,164		5,270,827		5,067,824
Non-current deferred income taxes, net	177,425		184,971		135,765
Operating lease right of use assets	9,066,865		8,853,934		9,121,628
Goodwill	96,910		96,662		99,324
Other assets	599,318		796,467		860,844
Total Assets	$	27,709,904	$	28,461,458	$	30,301,434
Liabilities
Current liabilities:
Accounts payable	$	4,370,563	$	4,465,427	$	4,433,295
Accrued expenses and other current liabilities	3,811,585		4,244,997		3,536,637
Current portion of operating lease liabilities	1,575,582		1,576,561		1,650,574

Federal, state and foreign income taxes payable	260,789		181,155		286,455
Total current liabilities	10,018,519		10,468,140		9,906,961
Other long-term liabilities	908,907		1,015,720		1,033,236
Non-current deferred income taxes, net	54,063		44,175		33,930
Long-term operating lease liabilities	7,777,160		7,575,590		7,853,229
Long-term debt	3,355,815		3,354,841		5,334,864
Commitments and contingencies (See Note K)
Shareholders’ equity
Preferred stock, authorized 5,000,000 shares, par value $1, no shares issued	—		—		—
Common stock, authorized 1,800,000,000 shares, par value $1, issued and outstanding 1,172,711,116; 1,181,188,731 and 1,206,386,746 respectively	1,172,711		1,181,189		1,206,387
Additional paid-in capital	—		—		321,475
Accumulated other comprehensive loss	(740,984)		(687,150)		(581,184)
Retained earnings	5,163,713		5,508,953		5,192,536
Total shareholders’ equity	5,595,440		6,002,992		6,139,214
Total liabilities and shareholders’ equity	$	27,709,904	$	28,461,458	$	30,301,434

The accompanying notes are an integral part of the unaudited consolidated financial statements.

THE TJX COMPANIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

IN THOUSANDS


	Thirteen Weeks Ended
	April 30, 2022		May 1, 2021
Cash flows from operating activities:
Net income	$	587,473	$	533,930
Adjustments to reconcile net income to cash (used in) operating activities:
Depreciation and amortization	219,605		215,379

Impairment on equity investment	217,619		—
Loss on property disposals and impairment charges	3,883		931

Deferred income tax provision (benefit)	11,501		(16,181)
Share-based compensation	27,336		50,536
Changes in assets and liabilities:
(Increase) in accounts receivable	(65,740)		(156,999)
(Increase) in merchandise inventories	(1,085,340)		(750,553)
Decrease (increase) in income taxes recoverable	60,822		(27,949)
(Increase) decrease in prepaid expenses and other current assets	(32,816)		12,254
(Decrease) in accounts payable	(52,817)		(410,244)
(Decrease) increase in accrued expenses and other liabilities	(565,135)		12,214
Increase in income taxes payable	77,329		203,740
(Decrease) in net operating lease liabilities	(3,851)		(50,319)
Other, net	(34,345)		(49,466)
Net cash (used in) operating activities	(634,476)		(432,727)
Cash flows from investing activities:
Property additions	(314,351)		(225,293)


Purchases of investments	(15,649)		(7,345)
Sales and maturities of investments	5,528		7,733

Net cash (used in) investing activities	(324,472)		(224,905)
Cash flows from financing activities:
Payments on debt	—		(750,000)


Payments for repurchase of common stock	(607,201)		—
Cash dividends paid	(309,485)		(315,215)
Proceeds from issuance of common stock	18,055		36,539
Payments of employee tax withholdings for performance based stock awards	(32,459)		(24,426)

Net cash (used in) financing activities	(931,090)		(1,053,102)
Effect of exchange rate changes on cash	(41,659)		16,649
Net (decrease) in cash and cash equivalents	(1,931,697)		(1,694,085)
Cash and cash equivalents at beginning of year	6,226,765		10,469,570
Cash and cash equivalents at end of period	$	4,295,068	$	8,775,485

The accompanying notes are an integral part of the unaudited consolidated financial statements.

THE TJX COMPANIES, INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(UNAUDITED)

IN THOUSANDS


	Thirteen Weeks Ended
	Common Stock
	Shares	Par Value $1		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total
Balance, January 29, 2022	1,181,189	$	1,181,189	$	—	$	(687,150)	$	5,508,953	$	6,002,992
Net income	—	—		—		—		587,473		587,473

Other comprehensive (loss), net of tax	—	—		—		(53,834)		—		(53,834)
Cash dividends declared on common stock	—	—		—		—		(346,922)		(346,922)
Recognition of share-based compensation	—	—		27,336		—		—		27,336
Issuance of common stock under stock incentive plan, and related tax effect	1,145	1,145		(15,549)		—		—		(14,404)
Common stock repurchased	(9,623)	(9,623)		(11,787)		—		(585,791)		(607,201)
Balance, April 30, 2022	1,172,711	$	1,172,711	$	—	$	(740,984)	$	5,163,713	$	5,595,440


	Thirteen Weeks Ended
	Common Stock
	Shares	Par Value $1		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total
Balance, January 30, 2021	1,204,698	$	1,204,698	$	260,515	$	(606,071)	$	4,973,542	$	5,832,684
Net income	—	—		—		—		533,930		533,930

Other comprehensive income, net of tax	—	—		—		24,887		—		24,887
Cash dividends declared on common stock	—	—		—		—		(314,936)		(314,936)
Recognition of share-based compensation	—	—		50,536		—		—		50,536
Issuance of common stock under stock incentive plan, and related tax effect	1,689	1,689		10,424		—		—		12,113

Balance, May 1, 2021	1,206,387	$	1,206,387	$	321,475	$	(581,184)	$	5,192,536	$	6,139,214

The accompanying notes are an integral part of the unaudited consolidated financial statements.

THE TJX COMPANIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note A. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The Consolidated Financial Statements and Notes thereto have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. These Consolidated Financial Statements and Notes thereto are unaudited and, in the opinion of management, reflect all normal recurring adjustments, accruals and deferrals among periods required to match costs properly with the related revenue or activity, considered necessary by The TJX Companies, Inc. (together with its subsidiaries, “TJX”) for a fair statement of its Consolidated Financial Statements for the periods reported, all in conformity with GAAP consistently applied. Investments for which the Company exercises significant influence but does not have control are accounted for under the equity method. The Consolidated Financial Statements and Notes thereto should be read in conjunction with the audited Consolidated Financial Statements, including the related notes, contained in TJX’s Annual Report on Form 10-K for the fiscal year ended January 29, 2022 (“fiscal 2022”).

These interim results are not necessarily indicative of results for the full fiscal year. TJX’s business, in common with the businesses of retailers generally, is subject to seasonal influences, with higher levels of sales and income generally realized in the second half of the year.

The January 29, 2022 balance sheet data was derived from audited Consolidated Financial Statements and does not include all disclosures required by GAAP.

Fiscal Year

TJX’s fiscal year ends on the Saturday nearest to the last day of January of each year. The current fiscal year ends January 28, 2023 (“fiscal 2023”) and is a 52-week fiscal year. Fiscal 2022 was also a 52-week fiscal year.

Use of Estimates

The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. TJX considers its accounting policies relating to inventory valuation, reserves for uncertain tax positions and loss contingencies to be the most significant accounting policies that involve management estimates and judgments. Actual amounts could differ from these estimates, and such differences could be material. TJX considered the impact of COVID-19 on its estimates and the Company cannot reasonably estimate with certainty the duration and severity of this pandemic which has had, and may continue to have, a material impact on its business, results of operations, financial position and cash flows.

Equity Investment

In fiscal 2020, the Company acquired a minority ownership stake in privately held Familia, an off-price retailer of apparel and home fashions domiciled in Luxembourg that operates stores throughout Russia. During the quarter ended April 30, 2022, the Company announced that it has committed to divesting its minority investment and as a result, the Company performed an impairment analysis of this investment. Based on this analysis the Company concluded that there was an other-than-temporary impairment of this investment and recorded an impairment charge of $218 million representing the entirety of the Company’s investment. See Note F—Fair Value Measurements for additional information.

Deferred Gift Card Revenue

The following table presents deferred gift card revenue activity:


In thousands	April 30, 2022		May 1, 2021
Balance, beginning of year	$	685,202	$	576,187
Deferred revenue	383,892		323,773
Effect of exchange rates changes on deferred revenue	(2,645)		2,899
Revenue recognized	(443,944)		(365,854)
Balance, end of period	$	622,505	$	537,005

Gift cards are combined in one homogeneous pool and are not separately identifiable. As such, the revenue recognized consists of gift cards that were part of the deferred revenue balance at the beginning of the period as well as gift cards that were issued during the period.

Leases

Supplemental cash flow information related to leases is as follows:


	Thirteen Weeks Ended
In thousands	April 30, 2022		May 1, 2021
Operating cash flows paid for operating leases	$	488,233	$	531,836
Lease liabilities arising from obtaining right of use assets	$	756,609	$	488,666

Future Adoption of New Accounting Standards

From time to time, the Financial Accounting Standards Board (“FASB”) or other standard setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification are communicated through issuance of an Accounting Standards Update (“ASU”). The Company has reviewed the new guidance and has determined that it will either not apply to TJX or is not expected to be material to its Consolidated Financial Statements upon adoption and therefore, they are not disclosed.

Note B. Property at Cost

The following table presents the components of property at cost:


In thousands	April 30, 2022		January 29, 2022		May 1, 2021
Land and buildings	$	1,929,521	$	1,911,569	$	1,723,049
Leasehold costs and improvements	3,615,202		3,652,280		3,611,943
Furniture, fixtures and equipment	6,961,560		6,871,777		6,602,759
Total property at cost	$	12,506,283	$	12,435,626	$	11,937,751
Less: accumulated depreciation and amortization	7,217,119		7,164,799		6,869,927
Net property at cost	$	5,289,164	$	5,270,827	$	5,067,824

Depreciation expense was $218 million for the three months ended April 30, 2022 and $212 million for the three months ended May 1, 2021.

Non-cash investing activities in the cash flows consist of accrued capital additions of $176 million and $90 million as of the periods ended April 30, 2022 and May 1, 2021, respectively.

Note C. Accumulated Other Comprehensive (Loss) Income

Amounts included in Accumulated other comprehensive (loss) are recorded net of taxes. The following table details the changes in Accumulated other comprehensive (loss) for the twelve months ended January 29, 2022 and the three months ended April 30, 2022:


In thousands	Foreign Currency Translation		Deferred Benefit Costs		Cash Flow Hedge on Debt		Accumulated Other Comprehensive (Loss) Income
Balance, January 30, 2021	$	(441,532)	$	(164,802)	$	263	$	(606,071)
Additions to other comprehensive loss:
Foreign currency translation adjustments (net of taxes of $207)	(46,715)		—		—		(46,715)

Recognition of net gains/losses on benefit obligations (net of taxes of $17,659)	—		(48,504)		—		(48,504)

Reclassifications from other comprehensive loss to net income:
Amortization of loss on cash flow hedge (net of taxes of $603)	—		—		(263)		(263)
Amortization of prior service cost and deferred gains/losses (net of taxes of $4,588)	—		14,403		—		14,403
Balance, January 29, 2022	$	(488,247)	$	(198,903)	$	—	$	(687,150)
Additions to other comprehensive loss:
Foreign currency translation adjustments (net of taxes of $574)	(57,612)						(57,612)
Reclassifications from other comprehensive loss to net income:


Amortization of prior service cost and deferred gains/losses (net of taxes of $1,375)	—		3,778		—		3,778
Balance, April 30, 2022	$	(545,859)	$	(195,125)	$	—	$	(740,984)

Note D. Capital Stock and Earnings Per Share

Capital Stock

TJX repurchased and retired 9.5 million shares of its common stock at a cost of approximately $0.6 billion during the quarter ended April 30, 2022, on a “trade date” basis. TJX reflects stock repurchases in its consolidated financial statements on a “settlement date” or cash basis. TJX had cash expenditures under repurchase programs of $0.6 billion for the three months ended April 30, 2022. These expenditures were funded by cash generated from operations.

In February 2022, the Company announced that its Board of Directors had approved a new stock repurchase program that authorizes the repurchase of up to an additional $3.0 billion of TJX common stock from time to time. Under this program and previously announced programs, TJX had approximately $3.2 billion available for repurchase as of April 30, 2022.

All shares repurchased under the stock repurchase programs have been retired.

Earnings Per Share

The following table presents the calculation of basic and diluted earnings per share:


	Thirteen Weeks Ended
Amounts in thousands, expect per share amounts	April 30, 2022		May 1, 2021
Basic earnings per share:
Net income	$	587,473	$	533,930
Weighted average common shares outstanding for basic earnings per share calculation	1,177,141		1,205,439
Basic earnings per share	$	0.50	$	0.44
Diluted earnings per share:
Net income	$	587,473	$	533,930

Weighted average common shares outstanding for basic earnings per share calculation	1,177,141		1,205,439
Assumed exercise / vesting of stock options and awards	12,122		16,078
Weighted average common shares outstanding for diluted earnings per share calculation	1,189,263		1,221,517
Diluted earnings per share	$	0.49	$	0.44
Cash dividends declared per share	$	0.295	$	0.26

The weighted average common shares for the diluted earnings per share calculation excludes the impact of outstanding stock options if the assumed proceeds per share of the option is in excess of the average price of TJX’s common stock for the related fiscal period. Such options are excluded because they would have an antidilutive effect. There were 5.1 million such options excluded for the thirteen weeks ended April 30, 2022 and there were no such options excluded for the thirteen weeks ended May 1, 2021.

Note E. Financial Instruments

As a result of its operating and financing activities, TJX is exposed to market risks from changes in interest and foreign currency exchange rates and fuel costs. These market risks may adversely affect TJX’s operating results and financial position. TJX seeks to minimize risk from changes in interest and foreign currency exchange rates and fuel costs through the use of derivative financial instruments when and to the extent deemed appropriate. TJX does not use derivative financial instruments for trading or other speculative purposes and does not use any leveraged derivative financial instruments. TJX recognizes all derivative instruments as either assets or liabilities in the Consolidated Balance Sheet and measures those instruments at fair value. The fair values of the derivatives are classified as assets or liabilities, current or non-current, based upon valuation results and settlement dates of the individual contracts. Changes to the fair value of derivative contracts that do not qualify for hedge accounting are reported in earnings in the period of the change. For derivatives that qualify for hedge accounting, changes in the fair value of the derivatives are either recorded in shareholders’ equity as a component of Accumulated other comprehensive (loss) or are recognized currently in earnings, along with an offsetting adjustment against the basis of the item being hedged.

Diesel Fuel Contracts

TJX hedges portions of its estimated notional diesel requirements based on the diesel fuel expected to be consumed by independent freight carriers transporting TJX’s inventory. Independent freight carriers transporting TJX’s inventory charge TJX a mileage surcharge based on the price of diesel fuel. The hedge agreements are designed to mitigate the volatility of diesel fuel pricing (and the resulting per mile surcharges payable by TJX) by setting a fixed price per gallon for the period being hedged. During fiscal 2022, TJX entered into agreements to hedge a portion of its estimated notional diesel requirements for fiscal 2023, and during the first three months of fiscal 2023, TJX entered into agreements to hedge a portion of its estimated notional diesel requirements for the first three months of fiscal 2024. The hedge agreements outstanding at April 30, 2022 relate to approximately 51% of TJX’s estimated notional diesel requirements for the remainder of fiscal 2023 and approximately 47% of TJX’s estimated notional diesel requirements for the first three months of fiscal 2024. These diesel fuel hedge agreements will settle throughout fiscal 2023 and throughout the first four months of fiscal 2024. TJX elected not to apply hedge accounting to these contracts.

Foreign Currency Contracts

TJX enters into forward foreign currency exchange contracts to obtain economic hedges on portions of merchandise purchases made and anticipated to be made by the Company’s operations in currencies other than their respective functional currencies. The contracts outstanding at April 30, 2022 cover merchandise purchases the Company is committed to over the next several months. Additionally, TJX’s operations in Europe are subject to foreign currency exposure as a result of their buying function being centralized in the U.K. All merchandise is purchased centrally in the U.K. and then shipped and billed to the retail entities in other countries. This intercompany billing to TJX’s European businesses’ Euro denominated operations creates exposure to the central buying entity for changes in the exchange rate between the Euro and British Pound. A portion of the inflows of Euros to the central buying entity provides a natural hedge for merchandise purchased from third-party vendors that is denominated in Euros. TJX calculates any excess Euro exposure each month and enters into forward contracts of approximately 30 days' duration to mitigate this exposure.

TJX also enters into derivative contracts, generally designated as fair value hedges, to hedge intercompany debt. The changes in fair value of these contracts are recorded in Selling, general and administrative expenses and are offset by marking the underlying item to fair value in the same period. Upon settlement, the realized gains and losses on these contracts are offset by the realized gains and losses of the underlying item in Selling, general and administrative expenses.

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at April 30, 2022:


In thousands		Pay	Receive		Blended Contract Rate	Balance Sheet Location	Current Asset U.S.$		Current (Liability) U.S.$		Net Fair Value in U.S.$ at April 30, 2022
Fair value hedges:
Intercompany balances, primarily debt related:
	zł	25,000	£	4,541	0.1816	Prepaid Exp	$	149	$	—	$	149
	€	60,000	£	50,568	0.8428	(Accrued Exp)	—		(145)		(145)
	A$	170,000	U.S.$	122,061	0.7180	Prepaid Exp	1,868		—		1,868
	U.S.$	74,646	£	55,000	0.7368	(Accrued Exp)	—		(5,584)		(5,584)
	£	150,000	U.S.$	203,667	1.3578	Prepaid Exp	15,501		—		15,501
	€	200,000	U.S.$	229,237	1.1462	Prepaid Exp	16,758		—		16,758

Economic hedges for which hedge accounting was not elected:
	Diesel fuel contracts	Fixed on 3.2M – 4.0M gal per month		Float on 3.2M – 4.0M gal per month	N/A	Prepaid Exp	53,779		—		53,779
Intercompany billings in TJX International, primarily merchandise related:
	€	260,000	£	216,610	0.8331	(Accrued Exp)	—		(2,348)		(2,348)
Merchandise purchase commitments:
	C$	826,057	U.S.$	655,000	0.7929	Prepaid Exp	14,162		—		14,162
	C$	30,949	€	22,000	0.7108	(Accrued Exp)	—		(802)		(802)
	£	436,036	U.S.$	582,300	1.3354	Prepaid Exp / (Accrued Exp)	36,363		(210)		36,153
	A$	69,520	U.S.$	50,500	0.7264	Prepaid Exp	1,394		—		1,394
	zł	615,000	£	110,481	0.1796	Prepaid Exp	2,458		—		2,458

	U.S.$	152,073	€	135,500	0.8910	(Accrued Exp)	—		(8,897)		(8,897)
Total fair value of derivative financial instruments							$	142,432	$	(17,986)	$	124,446

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at January 29, 2022:


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

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at May 1, 2021:


In thousands		Pay	Receive		Blended Contract Rate	Balance Sheet Location	Current Asset U.S.$		Current (Liability) U.S.$		Net Fair Value in U.S.$ at May 1, 2021
Fair value hedges:
Intercompany balances, primarily debt related:
	zł	45,000	£	8,846	0.1966	Prepaid Exp	$	353	$	—	$	353

	A$	80,000	U.S.$	62,032	0.7754	(Accrued Exp)	—		(98)		(98)
	U.S.$	75,102	£	55,000	0.7323	Prepaid Exp	1,505		—		1,505
	£	450,000	U.S.$	620,918	1.3798	Prepaid Exp / (Accrued Exp)	40		(5,582)		(5,542)
	€	200,000	U.S.$	244,699	1.2235	Prepaid Exp	2,301		—		2,301

Economic hedges for which hedge accounting was not elected:
	Diesel fuel contracts	Fixed on 3.1M – 3.8M gal per month		Float on 3.1M – 3.8M gal per month	N/A	Prepaid Exp	17,816		—		17,816
Intercompany billings in TJX International, primarily merchandise related:
	€	163,000	£	141,240	0.8665	(Accrued Exp)	—		(166)		(166)


Merchandise purchase commitments:
	C$	574,390	U.S.$	457,000	0.7956	(Accrued Exp)	—		(11,054)		(11,054)
	C$	29,455	€	19,500	0.6620	(Accrued Exp)	—		(444)		(444)
	£	282,746	U.S.$	391,800	1.3857	Prepaid Exp / (Accrued Exp)	1,939		(3,751)		(1,812)
	A$	50,830	U.S.$	39,125	0.7697	Prepaid Exp / (Accrued Exp)	42		(356)		(314)


	U.S.$	53,680	€	44,400	0.8271	Prepaid Exp / (Accrued Exp)	185		(267)		(82)
Total fair value of derivative financial instruments							$	24,181	$	(21,718)	$	2,463

The impact of derivative financial instruments on the Consolidated Statements of Income is presented below:


		Amount of Gain (Loss) Recognized in Income by Derivative
	Location of Gain (Loss) Recognized in Income by Derivative	Thirteen Weeks Ended
In thousands		April 30, 2022		May 1, 2021
Fair value hedges:
Intercompany balances, primarily debt related	Selling, general and administrative expenses	$	24,395	$	(2,864)
Economic hedges for which hedge accounting was not elected:

Diesel fuel contracts	Cost of sales, including buying and occupancy costs	44,173		13,570
Intercompany billings in TJX International, primarily merchandise related	Cost of sales, including buying and occupancy costs	(370)		118

Merchandise purchase commitments	Cost of sales, including buying and occupancy costs	40,929		(15,969)
Gain (loss) recognized in income		$	109,127	$	(5,145)

Note F. Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date or “exit price”. The inputs used to measure fair value are generally classified into the following hierarchy:


Level 1:						Unadjusted quoted prices in active markets for identical assets or liabilities

Level 2:						Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability

Level 3:						Unobservable inputs for the asset or liability

The following table sets forth TJX’s financial assets and liabilities that are accounted for at fair value on a recurring basis:


In thousands	April 30, 2022	January 29, 2022	May 1, 2021
Level 1
Assets:
Executive Savings Plan investments	$