TJ Maxx 2000 Annual Report Download

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Selected Financial Data (Continuing Operations)
Dollars In Thousands Fiscal Year Ended January
Except Per Share Amounts 2001 2000 1999 1998 1997
(53 weeks)
INCOME STATEMENT AND PER SHARE DATA:
Net sales $9,579,006 $8,795,347 $7,949,101 $7,389,069 $6,689,410
Income from continuing operations
before extraordinary item
and cumulative effect of
accounting change $ 538,066 $ 526,822 $ 433,202 $ 306,592 $ 213,826
Weighted average common
shares for diluted earnings
per share calculation 289,196,228 317,790,764 334,647,950 349,612,184 350,650,100
Diluted earnings per share from
continuing operations before
extraordinary item and cumulative
effect of accounting change $1.86 $1.66 $1.29 $.88 $.61
Cash dividends declared per share $ .16 $ .14 $ .12 $.10 $.07
BALANCE SHEET DATA:
Cash and cash equivalents $ 132,535 $ 371,759 $ 461,244 $ 404,369 $ 474,732
Working capital 493,188 513,376 629,247 622,240 588,868
Total assets 2,932,283 2,804,963 2,747,846 2,609,632 2,506,761
Capital expenditures 257,005 238,569 207,742 192,382 119,153
Long-term debt 319,372 319,367 220,344 221,024 244,410
Shareholders’ equity 1,218,712 1,119,228 1,220,656 1,164,092 1,127,186
OTHER FINANCIAL DATA:
After-tax return on average
shareholders’ equity 46.0% 45.0% 36.3% 26.8% 22.6%
Total debt as a percentage
of total capitalization (1) 22.7% 27.3% 15.3% 17.3% 19.4%
STORES IN OPERATION AT YEAR-END:
T.J. Maxx 661 632 604 580 578
Marshalls 535 505 475 461 454
Winners 117 100 87 76 65
T.K. Maxx 74 54 39 31 18
HomeGoods 81 51 35 23 21
A.J. Wright 25 15 6 ––
Total 1,493 1,357 1,246 1,171 1,136
(1) Total capitalization includes shareholders’ equity and short and long-term debt, including current installments.
THE TJX COMPANIES, INC.
17

Table of contents

  • Page 1
    ... effect of accounting change Weighted average common shares for diluted earnings per share calculation Diluted earnings per share from continuing operations before extraordinary item and cumulative effect of accounting change Cash dividends declared per share B A L A N C E S H E E T D ATA : $9,579...

  • Page 2
    ... average common shares - basic DILUTED EARNINGS PER SHARE: $1.87 $1.87 287,440,637 $1.67 $1.66 314,577,145 $1.35 $1.32 318,073,081 Income from continuing operations before cumulative effect of accounting change Net income Weighted average common shares - diluted Cash dividends declared per...

  • Page 3
    ...2001 January 29, 2000 ASSETS Current assets: Cash and cash equivalents Accounts receivable Merchandise inventories Prepaid expenses and other current assets Total current assets Property at cost: Land and buildings Leasehold costs and improvements Furniture, fixtures and equipment Less accumulated...

  • Page 4
    ... short-term debt, net Proceeds from borrowings of long-term debt Principal payments on long-term debt Proceeds from sale and issuance of common stock, net Cash payments for repurchase of common stock Cash dividends paid Net cash (used in) financing activities Effect of exchange rate changes on cash...

  • Page 5
    ... currency translation Unrealized (loss) on securities Total comprehensive income Cash dividends declared on common stock Common stock repurchased Issuance of common stock under stock incentive plans and related tax benefits BALANCE, JANUARY 29, 2000 Comprehensive income: Net income Foreign currency...

  • Page 6
    ... high-grade commercial paper, institutional money market funds and time deposits with major banks. The fair value of cash equivalents approximates carrying value. During September 1999, TJX received 693,537 common shares of Manulife Financial Corporation (Manulife). The shares reflect ownership...

  • Page 7
    .... All historical earnings per share amounts reflect the June 1998 two-for-one stock split. EARNINGS PER SHARE: F O R E I G N C U R R E N C Y T R A N S L AT I O N : TJX's foreign assets and liabilities are translated at the year-end exchange rate. Activity of the foreign operations that impact...

  • Page 8
    ... acquired Marshalls from Melville Corporation. TJX paid $424.3 million in cash and $175 million in junior convertible preferred stock. The total purchase price of Marshalls, including acquisition costs of $6.7 million, was $606 million. ACQUISITION OF MARSHALLS: C. LONG-TERM DEBT AND CREDIT LINES...

  • Page 9
    ...a $250 million, 364-day revolving credit agreement. The agreements have similar terms which include certain financial covenants requiring that TJX maintain specified fixed charge coverage and leverage ratios. The revolving credit facilities are used as backup to TJX's commercial paper program. As of...

  • Page 10
    ...,000 shares available for future grants under this plan as of January 27, 2001. Under its stock option plans, TJX has granted options for the purchase of common stock, generally within ten years from the grant date at option prices of 100% of market price on the grant date. Most options outstanding...

  • Page 11
    ... and continues to apply the provisions of Accounting Principles Board (APB) Opinion No. 25, "Accounting for Stock Issued to Employees," in accounting for compensation expense under its stock option plans. TJX grants options at fair market value on the date of the grant; accordingly, no compensation...

  • Page 12
    ...of TJX stock from date of grant. During fiscal 2000 and 1999, all of the shares were denominated into other investments. TJX separately transferred funds to a trust in an amount equal to the value of the new investment elections at the time such elections were made by the executive. The trust assets...

  • Page 13
    ...dividends Income from continuing operations before cumulative effect of accounting change for diluted earnings per share calculation Weighted average common stock outstanding for basic earnings per share calculation Assumed conversion/exercise of: Convertible preferred stock Stock options and awards...

  • Page 14
    ... a deferred tax benefit of $7.0 million in fiscal 2001 due to the anticipated utilization of the balance of T.K. Maxx's net operating loss carryforward. The United Kingdom net operating loss does not expire under current tax law. Due to TJX's decision to close its Netherlands operation, TJX does not...

  • Page 15
    ... key employees of TJX and provides additional retirement benefits based on average compensation; and an unfunded postretirement medical plan which provides limited postretirement medical and life insurance benefits to associates who participate in TJX's retirement plan and who retire at age fifty...

  • Page 16
    ... 29, 2000, TJX and an executive officer entered into an agreement whereby the executive waived his right to benefits under TJX's nonqualified plan in exchange for TJX's funding of a split-dollar life insurance policy. The exchange was accounted for as a settlement and TJX incurred a $1.5 million...

  • Page 17
    ... compensation and benefits Rent, utilities, and occupancy, including real estate taxes Insurance, advertising and all other Accrued expenses and other current liabilities $133,877 71,305 338,832 $544,014 $110,065 61,231 299,863 $471,159 K. R E S E R V E S TJX has a reserve for store closing and...

  • Page 18
    ...02 per diluted share, was recorded as a loss from discontinued operations. On November 12, 2000, the Hit or Miss store chain filed for bankruptcy and subsequently announced that it is in the process of liquidating its assets under Chapter 11 of the Federal Bankruptcy Code. TJX believes this reserve...

  • Page 19
    ...in Canada and T.K. Maxx operates in Europe, primarily the United Kingdom. Winners and T.K. Maxx accounted for 10% of TJX's net sales for fiscal 2001. All of TJX's other store chains do business in the United States with the exception of a limited number of stores operated in Puerto Rico by Marshalls...

  • Page 20
    ... at any time on or after February 13, 2007 for the original purchase price plus accrued original issue discount. TJX intends to use the proceeds to fund an accelerated store roll-out program, investment in its distribution center network, its common stock repurchase program and for general corporate...

  • Page 21
    ... of members of the Board of Directors who are neither officers nor employees of TJX, meets periodically with management, internal auditors and the independent public accountants to review matters relating to TJX's financial reporting, the adequacy of internal accounting controls and the scope...

  • Page 22
    ...due to improved merchandise margins at Marmaxx. We have managed our inventories tightly during both years, allowing us to take advantage of better buys in the marketplace. This ratio is expected to increase slightly in the short term due to our increased investment in our distribution center network...

  • Page 23
    ... expense ratio in fiscal 2001. Selling, general and administrative expenses for fiscal 1999 include charges of $7.5 million for a charitable cash donation to The TJX Foundation, $3.5 million for the settlement of the Hit or Miss note receivable and $6.3 million associated with an executive deferred...

  • Page 24
    .... The growth in T.K. Maxx's operating income in these two countries, for fiscal 2001 and fiscal 2000, is primarily due to the growth in their store base and their strong same store sales performance. We have increased our expansion plans for T.K. Maxx in the United Kingdom and Ireland and expect to...

  • Page 25
    ...in same store sales in fiscal 2001. This chain is still in the development stages and entered new markets in the United States during fiscal 2001. During fiscal 2001 we opened a new 301,000 square foot distribution center in Fall River, Massachusetts. We currently plan to add 20 new stores in fiscal...

  • Page 26
    ... be purchased rather than leased. The most significant distribution center capital requirements for fiscal 2002 include the equipment and fixtures for the new Marmaxx facility in Philadelphia and the new HomeGoods facility in Indianapolis. These are leased facilities which will become operational...

  • Page 27
    ... may pay the purchase price in cash, our stock, or a combination of the two. We intend to use the proceeds for our accelerated store roll-out program, investment in our distribution center network, general corporate purposes and our common stock repurchase program. We believe that our current credit...

  • Page 28
    ... it clear that any projected results expressed or implied therein will not be realized. Price Range of Common Stock TJX's common stock is listed on the New York Stock Exchange (Symbol: TJX). The quarterly high and low trading stock prices for fiscal 2001 and fiscal 2000 are as follows: Fiscal 2001...

  • Page 29
    ... Income before cumulative effect of accounting change Diluted earnings per share Net income Diluted earnings per share Fiscal year ended January 29, 2000 ( 2 ) Net sales Gross earnings (1) Income before cumulative effect of accounting change Diluted earnings per share Net income Diluted earnings per...

  • Page 30
    ... Barron Chief Operating Officer, The Marmaxx Group Joseph K. Birmingham Real Estate Robert J. Hernandez Information Services Christina Lofgren Property Development Jay H. Meltzer General Counsel and Secretary Michael Skirvin Corporate Controller George Sokolowski Marketing VICE PRESIDENTS Robert...

  • Page 31
    ... SENIOR VICE PRESIDENTS Douglas Benjamin Inventory Management Paul Butka Systems Robert Garofalo Store Operations Scott Goldenberg Finance Herbert S. Landsman Merchandising Peter Lindenmeyer Distribution Services Louis Luciano Merchandising Bruce Margolis Human Resources Richard Sherr Merchandising...

  • Page 32
    ...New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Total Stores (at January 27, 2001) T. J . M a x x Marshalls United...