TJX Earnings 2021-05-01

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

tjx-20210501

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 May 1, 2021


☐			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 21, 2021: 1,206,487,186

The TJX Companies, Inc.

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

THE TJX COMPANIES, INC.

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(UNAUDITED)

IN THOUSANDS EXCEPT PER SHARE AMOUNTS


	Thirteen Weeks Ended
	May 1, 2021		May 2, 2020
Net sales	$	10,086,661	$	4,408,888
Cost of sales, including buying and occupancy costs	7,255,635		4,414,465
Selling, general and administrative expenses	2,064,992		1,313,920


Interest expense, net	44,688		23,351
Income (loss) before income taxes	721,346		(1,342,848)
(Provision) benefit for income taxes	(187,416)		455,359
Net income (loss)	$	533,930	$	(887,489)
Basic earnings (loss) per share	$	0.44	$	(0.74)
Weighted average common shares – basic	1,205,439		1,197,809
Diluted earnings (loss) per share	$	0.44	$	(0.74)
Weighted average common shares – diluted	1,221,517		1,197,809

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

THE TJX COMPANIES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

IN THOUSANDS


	Thirteen Weeks Ended
	May 1, 2021		May 2, 2020
Net income (loss)	$	533,930	$	(887,489)
Additions to other comprehensive income (loss):
Foreign currency translation adjustments, net of related tax provision of $2,898 in fiscal 2022 and tax benefit of $6,948 in fiscal 2021	22,249		(129,158)
Reclassifications from other comprehensive income (loss) to net income (loss):
Amortization of prior service cost and deferred gains/losses, net of related tax provisions of $1,056 in fiscal 2022 and $1,746 in fiscal 2021	2,901		4,797
Amortization of loss on cash flow hedge, net of related tax provisions of $603 in fiscal 2022 and $76 in fiscal 2021	(263)		208
Other comprehensive income (loss), net of tax	24,887		(124,153)
Total comprehensive income (loss)	$	558,817	$	(1,011,642)

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


	May 1, 2021		January 30, 2021		May 2, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	8,775,485	$	10,469,570	$	4,287,835

Accounts receivable, net	621,177		461,139		172,463
Merchandise inventories	5,114,643		4,337,389		4,945,720
Prepaid expenses and other current assets	440,533		434,977		408,587
Federal, state and foreign income taxes recoverable	64,211		36,262		481,643
Total current assets	15,016,049		15,739,337		10,296,248
Net property at cost	5,067,824		5,036,096		5,201,697
Non-current deferred income taxes, net	135,765		127,191		36,742
Operating lease right of use assets	9,121,628		8,989,998		9,073,898
Goodwill	99,324		98,998		94,469
Other assets	860,844		821,935		712,186
TOTAL ASSETS	$	30,301,434	$	30,813,555	$	25,415,240
LIABILITIES
Current liabilities:
Accounts payable	$	4,433,295	$	4,823,397	$	1,071,190
Accrued expenses and other current liabilities	3,536,637		3,471,459		2,187,885
Current portion of operating lease liabilities	1,650,574		1,677,605		1,399,290
Current portion of long-term debt	—		749,684		—
Federal, state and foreign income taxes payable	286,455		81,523		11,182
Total current liabilities	9,906,961		10,803,668		4,669,547
Other long-term liabilities	1,033,236		1,063,902		786,008
Non-current deferred income taxes, net	33,930		37,164		113,229
Long-term operating lease liabilities	7,853,229		7,743,216		7,914,825
Long-term debt	5,334,864		5,332,921		7,192,413
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 1,206,386,746; 1,204,698,124 and 1,197,877,094 respectively	1,206,387		1,204,698		1,197,877
Additional paid-in capital	321,475		260,515		8,104
Accumulated other comprehensive loss	(581,184)		(606,071)		(797,324)
Retained earnings	5,192,536		4,973,542		4,330,561
Total shareholders’ equity	6,139,214		5,832,684		4,739,218
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	30,301,434	$	30,813,555	$	25,415,240

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
	May 1, 2021		May 2, 2020
Cash flows from operating activities:
Net income (loss)	$	533,930	$	(887,489)
Adjustments to reconcile net income (loss) to cash used in operating activities:
Depreciation and amortization	215,379		219,460
Loss on property disposals and impairment charges	931		26,424

Deferred income tax (benefit)	(16,181)		(48,464)
Share-based compensation	50,536		(11,531)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	(156,999)		210,419
(Increase) in merchandise inventories	(750,553)		(136,027)
(Increase) in income taxes recoverable	(27,949)		(434,674)
Decrease (increase) in prepaid expenses and other current assets	12,254		(39,580)
(Decrease) in accounts payable	(410,244)		(1,567,597)
Increase (decrease) in accrued expenses and other liabilities	12,214		(578,178)
Increase (decrease) in income taxes payable	203,740		(13,290)
(Decrease) increase in net operating lease liabilities	(50,319)		65,578
Other, net	(49,466)		34,466
Net cash (used in) operating activities	(432,727)		(3,160,483)
Cash flows from investing activities:
Property additions	(225,293)		(210,525)

Purchase of investments	(7,345)		(14,792)
Sales and maturities of investments	7,733		4,214

Net cash (used in) investing activities	(224,905)		(221,103)
Cash flows from financing activities:
Payments on debt	(750,000)		—
Proceeds from long-term debt including revolving credit facilities	—		4,988,452
Payments for debt issuance expenses	—		(33,872)
Payments for repurchase of common stock	—		(201,500)
Cash dividends paid	(315,215)		(278,250)
Proceeds from issuance of common stock	36,539		37,444
Payments of employee tax withholdings for performance based stock awards	(24,426)		(21,765)

Net cash (used in) provided by financing activities	(1,053,102)		4,490,509
Effect of exchange rate changes on cash	16,649		(37,840)
Net (decrease) increase in cash and cash equivalents	(1,694,085)		1,071,083
Cash and cash equivalents at beginning of year	10,469,570		3,216,752
Cash and cash equivalents at end of period	$	8,775,485	$	4,287,835

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 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, net of shares used to pay tax withholdings	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


	Thirteen Weeks Ended
	Common Stock
	Shares	Par Value $1		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total
Balance, February 1, 2020	1,199,100	$	1,199,100	$	—	$	(673,171)	$	5,422,283	$	5,948,212
Net (loss)	—	—		—		—		(887,489)		(887,489)

Other comprehensive (loss), net of tax	—	—		—		(124,153)		—		(124,153)

Recognition (reversal) of share-based compensation	—	—		20,304		—		(31,835)		(11,531)
Issuance of common stock under Stock Incentive Plan, net of shares used to pay tax withholdings	2,164	2,164		13,515		—		—		15,679
Common stock repurchased and retired	(3,387)	(3,387)		(25,715)		—		(172,398)		(201,500)
Balance, May 2, 2020	1,197,877	$	1,197,877	$	8,104	$	(797,324)	$	4,330,561	$	4,739,218

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 30, 2021 (“fiscal 2021”).

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 30, 2021 balance sheet data was derived from audited Consolidated Financial Statements and does not include all disclosures required by GAAP.

COVID-19 Pandemic

The novel coronavirus disease (“COVID-19”), was first identified in December 2019 before spreading worldwide. The Company has been, and may continue to be, impacted by the COVID-19 pandemic. In response to the pandemic, primarily during the first quarter of fiscal 2021, the Company took several steps to strengthen its financial position and balance sheet and to maintain financial liquidity and flexibility. The COVID-19 pandemic is complex and rapidly evolving and the severity and duration of the pandemic is still unknown. Additionally, the resurgence or the emergence of new variants has caused and may continue to cause intermittent or prolonged periods of temporary store closures, and could elicit further actions and recommendations from governments and public health authorities that could impact our operations. In the first quarter of fiscal 2021, the Company temporarily closed all of its stores, distribution centers and offices, and online businesses until the second quarter of fiscal 2021, while during the first quarter of fiscal 2022, our stores in the United States remained open for the entire first quarter, and we had (and continue to have) store closures primarily in Europe and Canada. The Company continues to monitor developments, including government requirements and recommendations at the national, state, and local level that could result in possible additional impacts to our operations. The Company cannot reasonably estimate 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.

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 29, 2022 (“fiscal 2022”) and is a 52-week fiscal year. Fiscal 2021 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 leases, inventory valuation, impairment of long-lived assets, reserves for uncertain tax positions and loss contingencies to be the most significant accounting policies that involve management estimates and judgments. The Company considered COVID-19 related impacts to its estimates, as appropriate, within its consolidated financial statements and there may be changes to those estimates in future periods. The Company believes that its accounting estimates are appropriate after giving consideration to the ongoing uncertainties surrounding the severity and duration of the COVID-19 pandemic and the associated containment and remediation efforts. Actual amounts could differ from these estimates, and such differences could be material.

Reclassifications

Certain reclassifications have been made to prior year financial information to conform to the current year’s presentation.

Deferred Gift Card Revenue

The following table presents deferred gift card revenue activity:


In thousands	May 1, 2021		May 2, 2020
Balance, beginning of year	$	576,187	$	500,844
Deferred revenue	323,773		158,948
Effect of exchange rates changes on deferred revenue	2,899		(4,680)
Revenue recognized	(365,854)		(180,062)
Balance, end of period	$	537,005	$	475,050

The increase in both deferred revenue and revenue recognized versus the prior year reflects the impact of the temporary store and e-commerce closures in the first quarter of fiscal 2021 due to the COVID-19 pandemic. 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 for the thirteen weeks ended May 1, 2021 and May 2, 2020 is as follows:


	Thirteen Weeks Ended
In thousands	May 1, 2021		May 2, 2020
Operating cash flows paid for operating leases	$	531,836	$	445,901
Lease liabilities arising from obtaining right of use assets	$	488,666	$	553,075

During fiscal 2021, the Company negotiated rent deferrals for a significant number of its stores, with repayment primarily throughout fiscal 2022.

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”). Unless otherwise discussed, the Company has reviewed the guidance and have determined that they will not apply or are not expected to be material to its Consolidated Financial Statements upon adoption and therefore are not disclosed.

Note B. Property at Cost

The following table presents the components of property at cost:


In thousands	May 1, 2021		January 30, 2021		May 2, 2020
Land and buildings	$	1,723,049	$	1,668,381	$	1,551,968
Leasehold costs and improvements	3,611,943		3,568,829		3,437,975
Furniture, fixtures and equipment	6,602,759		6,525,615		6,343,510
Total property at cost	$	11,937,751	$	11,762,825	$	11,333,453
Less: accumulated depreciation and amortization	6,869,927		6,726,729		6,131,756
Net property at cost	$	5,067,824	$	5,036,096	$	5,201,697

Depreciation expense was $212 million for the three months ended May 1, 2021 and $217 million for the three months ended May 2, 2020.

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 30, 2021 and the three months ended May 1, 2021:


In thousands	Foreign Currency Translation		Deferred Benefit Costs		Cash Flow Hedge on Debt		Accumulated Other Comprehensive (Loss) Income
Balance, February 1, 2020	$	(457,120)	$	(215,483)	$	(568)	$	(673,171)
Additions to other comprehensive loss:
Foreign currency translation adjustments (net of taxes of $2,442)	15,588		—		—		15,588

Recognition of net gains/losses on benefit obligations (net of taxes of $9,974)	—		30,635		—		30,635

Reclassifications from other comprehensive loss to net income:
Amortization of loss on cash flow hedge (net of taxes of $303)	—		—		831		831
Amortization of prior service cost and deferred gains/losses (net of taxes of $7,298)	—		20,046		—		20,046
Balance, January 30, 2021	$	(441,532)	$	(164,802)	$	263	$	(606,071)
Additions to other comprehensive loss:
Foreign currency translation adjustments (net of taxes of $2,898)	22,249		—		—		22,249
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 $1,056)	—		2,901		—		2,901
Balance, May 1, 2021	$	(419,283)	$	(161,901)	$	—	$	(581,184)

Note D. Capital Stock and Earnings (Loss) Per Share

Capital Stock

Prior to the suspension of the Company’s share repurchase program, during the first quarter of fiscal 2021, TJX repurchased and retired 3.2 million shares of its common stock at a cost of $190 million on a “trade date” basis. TJX reflects stock repurchases in its financial statements on a “settlement date” or cash basis. TJX had cash expenditures under repurchase programs of $201 million for the three months ended May 2, 2020. These expenditures were funded by cash generated from operations.

In February 2020, the Company announced that its Board of Directors had approved, in January 2020, a new stock repurchase program that authorizes the repurchase of up to an additional $1.5 billion of TJX common stock from time to time. In February 2019, TJX announced that its Board of Directors had approved an additional stock repurchase program that authorized the repurchase of up to $1.5 billion of TJX common stock from time to time.

As of May 1, 2021, TJX had approximately $3.0 billion available under these previously announced stock repurchase programs.

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

Subsequent to the end of the first quarter of fiscal 2022, the Company lifted the temporary suspension of its previously authorized stock repurchase programs.

Earnings (Loss) Per Share

The following table presents the calculation of basic and diluted earnings (loss) per share for net income (loss):


	Thirteen Weeks Ended
Amounts in thousands, expect per share amounts	May 1, 2021		May 2, 2020
Basic earnings (loss) per share:
Net income (loss)	$	533,930	$	(887,489)
Weighted average common shares outstanding for basic earnings (loss) per share calculation	1,205,439		1,197,809
Basic earnings (loss) per share	$	0.44	$	(0.74)
Diluted earnings (loss) per share:
Net income (loss)	$	533,930	$	(887,489)

Weighted average common shares outstanding for basic earnings (loss) per share calculations	1,205,439		1,197,809
Assumed exercise / vesting of stock options and awards	16,078		—
Weighted average common shares outstanding for diluted earnings (loss) per share calculation	1,221,517		1,197,809
Diluted earnings (loss) per share	$	0.44	$	(0.74)
Cash dividends declared per share	$	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 no such options excluded for the thirteen weeks ended May 1, 2021. For the period ended May 2, 2020, as a result of the net loss for the quarter, all options were antidilutive and therefore have been excluded from the calculation.

The Board of Directors declared a quarterly dividend of $0.26 per share in the first quarter of fiscal 2022.

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 Sheets 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 other comprehensive (loss) income or are recognized currently in earnings, along with an offsetting adjustment against the basis of the item being hedged.

Diesel Fuel Contracts

TJX hedges portions of its estimated notional diesel 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 2021, TJX entered into agreements to hedge a portion of its estimated notional diesel requirements for fiscal 2022, and during the first three months of fiscal 2022, TJX entered into agreements to hedge a portion of its estimated notional diesel requirements for the first three months of fiscal 2023. The hedge agreements outstanding at May 1, 2021 relate to approximately 48% of TJX’s estimated notional diesel requirements for the remainder of fiscal 2022 and approximately 40% of TJX’s estimated notional diesel requirements for the first three months of fiscal 2023. These diesel fuel hedge agreements will settle throughout the remainder of fiscal 2022 and throughout the first four months of fiscal 2023. 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. As a result of the COVID-19 pandemic, there was a significant change in the Company's anticipated merchandise purchases during the first quarter of fiscal 2021 and the Company early settled derivative contracts designed to hedge merchandise purchases that would no longer take place. The settlement of these contracts resulted in a net gain of $25 million in the first quarter of fiscal 2021. The contracts outstanding at May 1, 2021 cover the 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. The inflow 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 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 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 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 and related interest:
	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 following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at January 30, 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 January 30, 2021
Fair value hedges:
Intercompany balances, primarily debt and related interest:
	zł	45,000	£	8,846	0.1966	Prepaid Exp	$	11	$	—	$	11
	A$	80,000	U.S.$	62,032	0.7754	Prepaid Exp	738		—		738
	U.S.$	75,102	£	55,000	0.7323	Prepaid Exp	357		—		357
	£	200,000	U.S.$	274,853	1.3743	Prepaid Exp	32		—		32
	€	200,000	U.S.$	244,699	1.2235	Prepaid Exp / (Accrued Exp)	427		(182)		245
Economic hedges for which hedge accounting was not elected:
	Diesel fuel contracts	Fixed on 1.5M – 3.8M gal per month		Float on 1.5M– 3.8M gal per month	N/A	Prepaid Exp	4,880		—		4,880


Merchandise purchase commitments:
	C$	384,679	U.S.$	296,000	0.7695	Prepaid Exp / (Accrued Exp)	430		(5,627)		(5,197)
	C$	5,391	€	3,500	0.6492	Prepaid Exp	24		—		24
	£	203,264	U.S.$	263,950	1.2986	(Accrued Exp)	—		(15,086)		(15,086)
	zł	30,000	£	5,865	0.1955	(Accrued Exp)	—		(29)		(29)
	A$	46,985	U.S.$	35,250	0.7502	Prepaid Exp / (Accrued Exp)	144		(837)		(693)
	U.S.$	99,810	€	83,700	0.8386	Prepaid Exp / (Accrued Exp)	1,986		(160)		1,826
Total fair value of derivative financial instruments							$	9,029	$	(21,921)	$	(12,892)

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at May 2, 2020:

In thousands

Pay

Receive

Price	54.83	EPS	3
Shares	1,229	P/E	22
MCap	67,381	P/FCF	36
Net Debt	240	EBIT	3,921
TEV	67,621	TEV/EBIT	17
TTM 2019-11-02, in MM, except price, ratios

10-Q	2021-05-01	Filed 2021-05-28
10-K	2021-01-30	Filed 2021-03-31
10-Q	2020-10-31	Filed 2020-12-01
10-Q	2020-08-01	Filed 2020-08-28
10-Q	2020-05-02	Filed 2020-05-21
10-K	2020-02-01	Filed 2020-03-27
10-Q	2019-11-02	Filed 2019-12-03
10-Q	2019-08-03	Filed 2019-08-30
10-Q	2019-05-04	Filed 2019-05-31
10-K	2019-02-02	Filed 2019-04-03
10-Q	2018-11-03	Filed 2018-12-04
10-Q	2018-08-04	Filed 2018-08-31
10-Q	2018-05-05	Filed 2018-06-01
10-K	2018-02-03	Filed 2018-04-04
10-Q	2017-10-28	Filed 2017-11-28
10-Q	2017-07-29	Filed 2017-08-25
10-Q	2017-04-29	Filed 2017-05-26
10-K	2017-01-28	Filed 2017-03-28
10-Q	2016-10-29	Filed 2016-11-30
10-Q	2016-07-30	Filed 2016-08-26
10-Q	2016-04-30	Filed 2016-05-27
10-K	2016-01-30	Filed 2016-03-29
10-Q	2015-10-31	Filed 2015-12-01
10-Q	2015-08-01	Filed 2015-08-28
10-Q	2015-05-02	Filed 2015-05-29
10-K	2015-01-31	Filed 2015-03-31
10-Q	2014-11-01	Filed 2014-12-02
10-Q	2014-08-02	Filed 2014-08-29
10-Q	2014-05-03	Filed 2014-05-30
10-K	2014-02-01	Filed 2014-04-01
10-Q	2013-08-03	Filed 2013-08-30
10-Q	2013-05-04	Filed 2013-05-31
10-K	2013-02-02	Filed 2013-04-02
10-Q	2012-10-27	Filed 2012-11-29
10-Q	2012-07-28	Filed 2012-08-24
10-Q	2012-04-28	Filed 2012-05-25
10-K	2012-01-28	Filed 2012-03-27
10-Q	2011-10-29	Filed 2011-12-01
10-Q	2011-07-30	Filed 2011-08-26
10-Q	2011-04-30	Filed 2011-05-27
10-K	2011-01-29	Filed 2011-03-30
10-Q	2010-10-30	Filed 2010-11-24
10-Q	2010-07-31	Filed 2010-08-27
10-Q	2010-05-01	Filed 2010-05-28
10-K	2010-01-30	Filed 2010-03-30

8-K	2020-11-18
8-K	2020-11-18
8-K	2020-11-18
8-K	2020-10-26
8-K	2020-09-16
8-K	2020-08-19
8-K	2020-08-10
8-K	2020-06-09
8-K	2020-05-15
8-K	2020-04-01
8-K	2020-04-01
8-K	2020-03-30
8-K	2020-03-19
8-K	2020-02-26
8-K	2019-11-20
8-K	2019-11-19
8-K	2019-08-20
8-K	2019-06-04
8-K	2019-05-21
8-K	2019-03-14
8-K	2019-02-27
8-K	2019-02-01
8-K	2018-11-21
8-K	2018-11-20
8-K	2018-10-22
8-K	2018-09-27
8-K	2018-09-17
8-K	2018-08-21
8-K	2018-06-05
8-K	2018-05-22
8-K	2018-03-02
8-K	2018-02-28
8-K	2018-02-02
8-K	2018-01-16

EX-10.1	tjx-20210501xex101.htm
EX-10.2	tjx-20210501xex102.htm
EX-31.1	tjx-20210501xex311.htm
EX-31.2	tjx-20210501xex312.htm
EX-32.1	tjx-20210501xex321.htm
EX-32.2	tjx-20210501xex322.htm


PART I
ITEM 1. Financial Statements			3
Consolidated Statements of Income (Loss)			3
Consolidated Statements of Comprehensive Income (Loss)			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			21
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk			32
ITEM 4. Controls and Procedures			33

PART II
ITEM 1. Legal Proceedings			34
ITEM 1A. Risk Factors			34
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds			34
ITEM 6. Exhibits			34

SIGNATURES			35

TJX 10Q Quarterly Report

TJX Earnings 2021-05-01