TJ Maxx 2000 Annual Report Download - page 19

TJX remains contingently liable for the leases of most of the former Zayre stores still operated by Ames. TJX believes that its
contingent liability on these leases will not have a material affect on its financial condition.
TJX is also contingently liable on certain leases of its former warehouse club operations (BJ’s Wholesale Club and HomeBase), which
were spun–off by TJX in fiscal 1990 as Waban Inc. During fiscal 1998, Waban Inc. was renamed HomeBase, Inc. and spun–off from its
BJ’s Wholesale Club division (BJ’s Wholesale Club, Inc.). HomeBase, Inc. and BJ’s Wholesale Club, Inc. are primarily liable on their
respective leases and have indemnified TJX for any amounts TJX may have to pay with respect to such leases. In addition, HomeBase,
Inc., BJ’s Wholesale Club, Inc. and TJX have entered into agreements under which BJ’s Wholesale Club, Inc. has substantial indemni-
fication responsibility with respect to such HomeBase, Inc. leases. TJX is also contingently liable on certain leases of BJ’s Wholesale
Club, Inc. for which both BJ’s Wholesale Club, Inc. and HomeBase, Inc. remain liable. TJX believes that its contingent liability on the
HomeBase, Inc. and BJ’s Wholesale Club, Inc. leases will not have a material affect on its financial condition.
N. SEGMENT INFORMATION
Prior to fiscal 2001, TJX aggregated certain chains into the “off-price family apparel segment.” Due to the growth of Winners and T.K.
Maxx, TJX no longer aggregates them and now reports each of its operating divisions as a separate segment.
The T.J. Maxx and Marshalls store chains are managed on a combined basis and are reported as the Marmaxx segment. The
Winners chain operates exclusively 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 excep-
tion of a limited number of stores operated in Puerto Rico by Marshalls and HomeGoods. TJX’s target customer is the middle to
upper-middle income shopper with the exception of the A.J. Wright stores which target a more moderate income customer. All of TJX’s
stores, with the exception of HomeGoods, sell apparel for the entire family with a limited offering of giftware and domestics. The Home-
Goods stores are dedicated to home fashions and offer a variety of home furnishings.
TJX evaluates the performance of its segments based on pre–tax income before general corporate expense, goodwill amortization
and interest (operating income). Presented below is selected financial information on TJX's business segments:
Fiscal Year Ended
January 27, January 29, January 30,
In Thousands 2001 2000 1999
NET SALES:
Marmaxx $8,228,468 $7,779,826 $7,196,325
Winners 563,311 466,765 387,438
T. K. Maxx 389,062 298,659 222,090
HomeGoods 315,015 206,810 132,538
A. J. Wright 83,150 43,287 10,710
$9,579,006 $8,795,347 $7,949,101
OPERATING INCOME (LOSS):
Marmaxx $ 858,358 $ 849,560 $ 753,921
Winners 71,055 54,914 39,765
T. K. Maxx (1) 10,867 6,462 (2,243)
HomeGoods (2) 4,700 4,581 (4,950)
A. J. Wright (15,012) (14,444) (8,737)
929,968 901,073 777,756
General corporate expense (3) 39,513 37,182 69,449
Goodwill amortization 2,609 2,609 2,609
Interest expense, net 22,904 7,345 1,686
Income from continuing operations before income
taxes and cumulative effect of accounting change $ 864,942 $ 853,937 $ 704,012
(1) The period ended January 27, 2001 includes a pre-tax charge of $6.3 million for the estimated cost of closing the three stores in the Netherlands.
(2) The period ended January 30, 1999 includes a pre–tax charge of $2.2 million for certain store closing and other restructuring costs relating to HomeGoods.
(3) General corporate expense for the fiscal year ended January 29, 2000, includes a pre–tax gain of $8.5 million associated with TJX’s receipt of common stock
resulting from the demutualization of Manulife Financial Corporation and a pre–tax charge of $1.1 million for costs associated with a fiscal 1998 executive
deferred compensation award. General corporate expense for the fiscal year ended January 30, 1999 includes a pre–tax charge of $6.3 million for costs asso-
ciated with the foregoing executive deferred compensation award, a $3.5 million pre–tax charge for the write–down of a note receivable from TJX’s former Hit
or Miss division and a $7.5 million charitable donation to The TJX Foundation.
THE TJX COMPANIES, INC.
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