TJ Maxx 2000 Annual Report Download - page 28

THE TJX COMPANIES, INC.
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tively function as an economic hedge of the underlying exposure. Thus, the changes in fair value of the inventory related contracts will
impact earnings in the period of change. We will continue to apply hedge accounting on the net investment hedge contracts and
changes in fair value of these contracts will continue to be recorded in accumulated other comprehensive income.
In accordance with SFAS No. 133, the fair value of all of TJX’s hedge contracts amounted to a net asset of $10 million, most of which
are for the net investment hedge contracts. The carrying value of all of our hedging contracts, before adoption, was $12 million and thus
we recorded a charge to accumulated other comprehensive income for the cumulative effect of an accounting change of $2 million
effective January 28, 2001.
MARKET RISK
We are exposed to foreign currency exchange rate risk on our investment in our Canadian (Winners) and European (T.K. Maxx) opera-
tions. As more fully described in Note D to the consolidated financial statements, we hedge a significant portion of our net investment
and certain merchandise commitments in these operations with derivative financial instruments. We utilize currency forward and swap
contracts, designed to offset the gains or losses in the underlying exposures. The contracts are executed with creditworthy banks and
are denominated in currencies of major industrial countries. We do not enter into derivatives for speculative trading purposes.
FORWARD-LOOKING INFORMATION
Some statements contained in this Annual Report are forward–looking and involve a number of risks and uncertainties. Statements that
address activities, events and results that we intend, expect or believe may occur in the future are forward-looking statements. Among
the factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are
the following: general economic conditions and consumer demand and consumer preferences; weather patterns in areas where we
have concentrations of stores; competitive factors, including pressure from pricing and promotional activities of competitors; impact of
excess retail capacity and the availability of desirable store and distribution center locations on suitable terms; recruiting quality sales
associates; the availability, selection and purchasing of attractive merchandise on favorable terms; potential disruptions in supply and
duties, tariffs and quotas on imported merchandise, as well as economic and political problems in countries from which merchandise is
imported; currency and exchange rate factors in our foreign operations; expansion of our store base, development of new businesses
and application of our off–price strategies in foreign countries; acquisition and divestment activities; and other factors that may be
described in our filings with the Securities and Exchange Commission. We do not undertake to publicly update or revise our
forward–looking statements even if experience or future changes make 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 Fiscal 2000
Quarter High Low High Low
First $24.56 $13.94 $37.00 $27.06
Second 22.38 16.00 35.94 28.75
Third 26.31 15.81 33.50 24.00
Fourth 31.50 22.50 27.81 16.25
The approximate number of common shareholders at January 27, 2001 was 40,300.
TJX declared four quarterly dividends of $.04 per share for fiscal 2001 and $.035 per share for fiscal 2000.