TJ Maxx 2006 Annual Report Download

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THE TJX COMPANIES, INC.
2006 Annual Report

Table of contents

  • Page 1
    T H E T J X C O M PA N I E S, I N C . 2006 Annual Report

  • Page 2
    ...in 1990. At 2006's year-end, Winners operated 184 stores, which average approximately 29,000 square feet in size. Winners stores feature off-price designer and brand name women's apparel, family footwear, fine jewelry, children's apparel, lingerie, accessories, home fashions, and menswear. HomeGoods...

  • Page 3
    ...executed better off-price buying and flowed great brands to our stores, every day. We took a stronger strategic approach overall, most notably in marketing and real estate. With a re-energized organization and sense of urgency to deliver results, we drove a strong consolidated comparable store sales...

  • Page 4

  • Page 5
    ... departments at Marshalls. Further, we plan to be even stronger in our marketing presence and message. Additionally, we continue to fill in existing markets with new stores, with a plan to grow our adjusted earnings per share from continuing operations exclude the net benefit of one-time items...

  • Page 6
    ...tested 70 HG Kids departments, which create shopping destinations for children's furniture and accessories, with very positive early results. We also were very pleased to name Nan Stutz, who has nearly two decades of TJX experience and merchandising expertise, as President of HomeGoods in early 2007...

  • Page 7

  • Page 8

  • Page 9
    ...while increasing merchandise margins. In 2007, our focus remains on improving performance at our existing stores, with no new store openings planned until we see this business produce comparable store sales increases that meet our expectations. We expect Bob's Stores to be cash-flow positive in 2007...

  • Page 10
    ...new year in an excellent financial position and we plan to repurchase $900 million of TJX stock in 2007. S E L E C T E D C A S H F L O W D ATA ($ MILLIONS) NET CASH FROM OPERATING ACTIVITIES 1,200 1,000 800 600 400 200 0 03 07 03 (FYE) 07 03 07 differences among people, and opening ourselves to new...

  • Page 11
    ... remain focused on our chief goal of driving profitable sales growth and executing the fundamentals of our off-price concept that made this Company great. We sincerely thank our customers, our Associates, who now number approximately 125,000, our vendors and other business associates, and our fellow...

  • Page 12
    ... about helpful government benefits. We are proud of being a responsive, caring and involved neighbor in the communities where our stores, home offices and distribution centers are located. As a Company, we view our commitment to our communities and to the children who represent the future not as an...

  • Page 13
    ... Overview Store Locations Selected Financial Data Management's Discussion and Analysis Report of Independent Registered Public Accounting Firm Consolidated Financial Statements Notes to Consolidated Financial Statements: Selected Business Segment Financial Information Selected Quarterly Financial...

  • Page 14
    TJX STOCK PERFORMANCE The line graph below compares the cumulative performance of TJXÂ's common stock with the S&P Composite-500 Stock Index and the Dow Jones Apparel Retailers Index as of the date nearest the end of TJXÂ's fiscal year for which index data is readily available for each year in the ...

  • Page 15
    ...aggregate market value of the voting common stock held by non-affiliates of the registrant on July 29, 2006 was $10,966,329,516, based on the closing sale price as reported on the New York Stock Exchange. There were 453,649,813 shares of the registrant's common stock, $1.00 par value, outstanding as...

  • Page 16
    ... management systems and distribution networks specific to our off-price business model financial strength and excellent credit rating As an off-price retailer, we offer quality, name brand and designer family apparel and home fashions every day at substantial savings to comparable department...

  • Page 17
    ...1% from Puerto Rico. By merchandise category, we derived approximately 63% of our sales from apparel (including footwear), 25% from home fashions and 12% from jewelry and accessories. We consider each of our operating divisions to be a segment. The T.J. Maxx and Marshalls store chains are managed as...

  • Page 18
    ...square feet. We currently expect to add a net of 50 stores in fiscal 2008. Ultimately, we believe that T.J. Maxx and Marshalls together can operate approximately 1,800 stores in the United States and Puerto Rico. HOMEGOODS HomeGoods is our off-price retail chain that sells exclusively home fashions...

  • Page 19
    ...Bob's Stores' customer demographics span the moderate to upper-middle income bracket. Bob's Stores operated 36 stores at the end of fiscal 2007, with an average size of 45,000 square feet. We do not plan to open any new stores for this division in fiscal 2008 as we continue to evaluate this business...

  • Page 20
    ... following locations as of January 27, 2007: T.J. Maxx* Marshalls* HomeGoods* A. J. Wright Bob's Stores Alabama Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan...

  • Page 21
    ... systems in Framingham, MA that processes and stores information related to payment card, check and unreceipted merchandise return transactions for customers of our T.J. Maxx, Marshalls, HomeGoods and A.J. Wright stores in the U.S. and Puerto Rico and our Winners and HomeSense stores in Canada...

  • Page 22
    ...As we previously publicly reported, we believe customer data were stolen in September and November 2005 relating to a portion of the payment card transactions made at our stores in the U.S., Puerto Rico and Canada (excluding transactions at Bob's Stores and transactions made at Winners and HomeSense...

  • Page 23
    ... publicly reported, we believe that in 2006 the Intruder may also have stolen from our Framingham system additional payment card, check and unreceipted merchandise return information for transactions made in our stores in the U.S., Canada, and Puerto Rico (excluding transactions at Bob's Stores...

  • Page 24
    ... Intrusion. In addition, payment card companies and associations may seek to impose fines by reason of the Computer Intrusion. Financial Costs. In the fourth quarter of fiscal 2007, we recorded a pre-tax charge of approximately $5 million, or $.01 per share, for costs incurred through the fourth...

  • Page 25
    ... "SEC"). They are also available free of charge from TJX Investor Relations, 770 Cochituate Road, Framingham, Massachusetts, 01701. The Annual CEO Certification for the fiscal year ended January 28, 2006, as required by Section 303A.12(a) of the Listed Company Manual of the New York Stock Exchange...

  • Page 26
    ...our off-price model in new product lines, chains and geographic regions. We have expanded our original off-price model into different product lines, chains, geographic areas and countries. Our growth is dependent upon our ability to successfully execute our off-price retail apparel and home fashions...

  • Page 27
    ... of our inventory opportunistically with our buyers purchasing close to need. To drive traffic to the stores and to increase same store sales, the treasure hunt nature of the off-price buying experience requires continued replenishment of fresh high quality, attractively priced merchandise. While...

  • Page 28
    ... system and other expenses; and other potential liabilities, costs and expenses. Such losses could be material to our results of operations and financial condition. Further, the publicity associated with the Computer Intrusion could materially harm our business and relationships with customers...

  • Page 29
    ... dependent on recruiting, developing, training and retaining quality sales, distribution center and other associates in large numbers as well as experienced buying and management personnel. Many of our associates are in entry level or part-time positions with historically high rates of turnover. The...

  • Page 30
    ..., state or local laws, rules and regulations, any of which may change from time to time. Generally accepted accounting principles may change from time to time, as well. Regulatory developments and changes in accounting rules and principles could adversely affect our business operations and financial...

  • Page 31
    ... of January 27, 2007: Total Square Feet (In Thousands) Average Store Size Stores Distribution Centers T.J. Maxx Marshalls Winners(1) HomeSense(2) HomeGoods(3) T.K. Maxx A.J. Wright Bob's Stores Total (1) Distribution centers currently service both Winners and HomeSense stores. 30,000 32,000 29,000...

  • Page 32
    ... all customers in the United States, Puerto Rico and Canada, whose transaction data were allegedly compromised by the Computer Intrusion. An action has also been filed against TJX in federal court in Massachusetts putatively on behalf of all financial institutions who issued credit and debit cards...

  • Page 33
    ...fees, costs and interest. On January 31, 2007, a putative class action was filed against TJX in the United States District Court for the District of Puerto Rico, Miranda, et al. v. TJX, Inc., et ano., 07-cv-01075. The plaintiffs purport to represent a class of "all TJX customers who made credit card...

  • Page 34
    ... to represent a class of "residents of Massachusetts who made purchases and paid by credit or debit card or check or who made a return at one or more Marshalls, T.J. Maxx, HomeGoods, or A.J. Wright stores in the United States in 2003 or from May to December 2006." The complaint asserts claims for...

  • Page 35
    ... during the fourth quarter of fiscal 2007. ITEM 4A. Name EXECUTIVE OFFICERS OF THE REGISTRANT Age Office and Employment During Last Five Years Arnold Barron 59 Senior Executive Vice President, Group President, TJX since March 2004. Executive Vice President, Chief Operating Officer of The Marmaxx...

  • Page 36
    Name Age Office and Employment During Last Five Years Bernard Cammarata 67 Donald G. Campbell 55 Ernie Herrman 46 Carol Meyrowitz 53 Jeffrey G. Naylor 48 Jerome Rossi 63 Paul Sweetenham 42 Chairman of the Board since 1999. Acting Chief Executive Officer from September 2005 to ...

  • Page 37
    ... U I T Y SECURITIES Price Range of Common Stock Our common stock is listed on the New York Stock Exchange (Symbol: TJX). The quarterly high and low sale prices for the equity for fiscal 2007 and fiscal 2006 are as follows: Fiscal 2007 Quarter High Low Fiscal 2006 High Low First Second Third Fourth...

  • Page 38
    ... financial data: After-tax return (continuing operations) on average shareholders' equity Total debt as a percentage of total capitalization(3) Stores in operation at year-end: T.J. Maxx Marshalls Winners T.K. Maxx HomeGoods A.J. Wright(4) HomeSense Bob's Stores Total Selling Square Footage at year...

  • Page 39
    ... sales growth at our international divisions. In addition, approximately one percentage point of this increase came from the favorable effect of currency exchange rates. We increased our number of stores by 4% in fiscal 2007, ending the fiscal year with 2,466 stores in operation. Our selling square...

  • Page 40
    ... cash flows from operations which allowed us to fund our stock repurchase program as well as our capital investment needs. During fiscal 2007, we repurchased 22 million of our shares at a cost of $557 million, which favorably affected our earnings per share. In January 2007, our Board of Directors...

  • Page 41
    ... point of growth. Net sales for fiscal 2006 reflected strong demand for jewelry, accessories and footwear, as well as improved demand for men's apparel. The positive impact of growth in these categories was partially offset by same store sales declines in home fashions and women's sportswear...

  • Page 42
    ...our domestic operations) as well as settlement of a state tax assessment for less than the related reserves. Combined, these two items reduced the effective income tax rate by 0.6 percentage points as compared to fiscal 2006. The tax provision for fiscal 2006 includes a fourth quarter benefit of $47...

  • Page 43
    ...as a tax benefit of $22 million, or $0.04 per share, relating to the correction of a previously established deferred tax liability. Favorable changes in currency exchange rates added approximately $0.03 to our earnings per share in fiscal 2007 and approximately $0.01 per share in fiscal 2006. Income...

  • Page 44
    ... fourth quarter income from continuing operations of $243 million increased 11% and earnings per share of $0.51 increased 13%. Pre-tax profit margin was 7.5% in both fiscal 2007 and fiscal 2006. Pre-tax margin improved on the strength of strong same-store sales at Winners, T.K. Maxx and HomeGoods...

  • Page 45
    ... fiscal 2006 was essentially flat compared to fiscal 2005 despite fuel related increases in freight costs. We added a net of 55 new stores (T.J. Maxx or Marshalls) in fiscal 2007, and increased total selling square footage of the division by 4%. We expect to open 50 new stores (net of closings) in...

  • Page 46
    .... Distribution and administrative costs as a percentage of net sales were essentially flat compared to fiscal 2005, despite the low same store sales increase. We added a net of 13 T.K. Maxx stores in fiscal 2007 and increased the division's selling square footage by 10%. We plan to open a net of...

  • Page 47
    ...discontinued operations in our financial statements for all periods presented. The operating income or loss for each year represents the operating results from store operations, reduced by an allocation of direct and incremental distribution and administrative costs relating to the closed stores. No...

  • Page 48
    ... of accounting and budgeting, internal audit, compliance, treasury, investor relations, tax, risk management, legal, human resources and systems; and the occupancy and office maintenance costs associated with the corporate staff. In addition, general corporate expense includes the cost of benefits...

  • Page 49
    ... cash flows. In fiscal 2007, the change in merchandise inventory, net of the related change in accounts payable, resulted in a use of cash of $151.2 million compared to a source of cash of $26.2 million in fiscal 2006. Fiscal 2007 operating cash flows were also reduced by higher income tax payments...

  • Page 50
    ...putative class actions seeking in the aggregate to represent all customers in the United States, Puerto Rico and Canada whose transaction information was allegedly compromised by the Computer Intrusion), banks and payment card companies seeking damages allegedly arising out of the Computer Intrusion...

  • Page 51
    ... 2007, our Board of Directors approved a new stock repurchase program that authorizes the repurchase of up to $1 billion of TJX common stock from time to time, which is in addition to the $436 million remaining in the existing plan at fiscal 2007 year end. In January 2006, Winners entered into...

  • Page 52
    ... insurance, real estate taxes and common area maintenance costs that we are obligated to pay. These costs were approximately one-third of the total minimum rent for the fiscal year ended January 27, 2007. Our purchase obligations primarily consist of purchase orders for merchandise; purchase orders...

  • Page 53
    ... we determine annually based on market interest rates, and our estimated longterm rate of return, which can differ considerably from actual returns, are two factors that can have a considerable impact on the annual cost of retirement benefits and the funded status of our qualified pension plan. We...

  • Page 54
    ... of the range of the possible loss or a statement that such loss is not estimable. RECENT ACCOUNTING PRONOUNCEMENTS In September 2006, the FASB issued Statement of Financial Accounting Standards No. 158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans -An amendment...

  • Page 55
    ... variable rate debt outstanding during the previous year. As of January 27, 2007, the analysis indicated that such an adverse movement would not have a material effect on our consolidated financial position, results of operations or cash flows. Market Risk The assets of our qualified pension plan...

  • Page 56
    ... that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms; and (ii) accumulated and communicated to our management, including our principal executive and principal financial officers, or persons...

  • Page 57
    ...Executives or the Code of Business Conduct and Ethics for Directors within four business days of the waiver or amendment through a website posting or by filing a Current Report on Form 8-K with the Securities and Exchange Commission. ITEM 11. E X E C U T I V E C O M P E N S AT I O N The information...

  • Page 58
    ...of New York, Citizens Bank of Massachusetts, Key Bank National Association and Union Bank of California, N.A., as coagents is incorporated herein by reference to Exhibit 10.1 to the Form 8-K filed May 6, 2005. The related Amendment No. 1 to the 4-year Revolving Credit Agreement dated May 12, 2006 is...

  • Page 59
    ...of New York, Citizens Bank of Massachusetts, Key Bank National Association and Union Bank of California, N.A., as coagents is incorporated herein by reference to Exhibit 10.2 to the Form 8-K filed May 6, 2005. The related Amendment No. 1 to the 5-year Revolving Credit Agreement dated May 12, 2006 is...

  • Page 60
    ... the fiscal year ended January 28, 2006. Insofar as the description relates to the director deferred share awards, it has been superseded by the Stock Incentive Plan, as amended through June 5, 2006, as referenced in Exhibit 10.11.* The TJX Companies, Inc. Long Range Performance Incentive Plan, as...

  • Page 61
    ...Certification Statement of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is filed herewith. Certification Statement of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is filed herewith. * Management contract or compensatory plan...

  • Page 62
    ... Vice President and Chief Financial and Administrative Officer, on behalf of The TJX Companies, Inc. and as Principal Financial and Accounting Officer of The TJX Companies, Inc. Dated: March 28, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed...

  • Page 63
    The TJX Companies, Inc. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS For Fiscal Years Ended January 27, 2007, January 28, 2006 and January 29, 2005 Report of Independent Registered Public Accounting Firm Consolidated Financial Statements: Consolidated Statements of Income for the fiscal years ended ...

  • Page 64
    ... audits of The TJX Companies, Inc.'s 2007 and 2006 consolidated financial statements and of its internal control over financial reporting as of January 27, 2007, in accordance with the standards of the Public Company Accounting Oversight Board (United States). Our opinions, based on our audits...

  • Page 65
    ... the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in...

  • Page 66
    ... OF INCOME Fiscal Year Ended Amounts In Thousands Except Per Share Amounts January 27, 2007 January 28, 2006 January 29, 2005 Net sales $17,404,637 $15,955,943 $14,860,746 Cost of sales, including buying and occupancy costs Selling, general and administrative expenses Interest expense, net 13...

  • Page 67
    The TJX Companies, Inc. CONSOLIDATED BALANCE SHEETS Fiscal Year Ended In Thousands January 27, 2007 January 28, 2006 ASSETS Current assets: Cash and cash equivalents Accounts receivable, net Merchandise inventories Prepaid expenses and other current assets Current deferred income taxes, net Total ...

  • Page 68
    ... from sale and issuance of common stock Proceeds from borrowings of long-term debt Cash payments for repurchase of common stock Excess tax benefits from stock compensation expense Cash dividends paid Net cash (used in) financing activities Effect of exchange rate changes on cash Net increase in cash...

  • Page 69
    ... comprehensive income Cash dividends declared on common stock Restricted stock awards granted Amortization of stock compensation expense Issuance of common stock under stock incentive plan and related tax effect Common stock repurchased Balance, January 28, 2006 Comprehensive income: Net income Gain...

  • Page 70
    ... of operating our distribution centers; payroll, benefits and travel costs directly associated with buying inventory; and systems costs related to the buying and tracking of inventory. Selling, general and administrative expenses include store payroll and benefit costs; communication costs; credit...

  • Page 71
    ... amortized into earnings over the related vesting period. Stock-Based Compensation: TJX adopted the provisions of Statement of Financial Accounting Standards No. 123 (revised 2004) "Share-Based Payment" (SFAS No. 123(R)) in its fourth quarter reporting period of fiscal 2006. TJX elected the modified...

  • Page 72
    ..., as of January 28, 2006; and a gain of $8.9 million, net of related tax effect of $11.0 million, as of January 29, 2005. TJX enters into financial instruments to manage our cost of borrowing and to manage our exposure to changes in foreign currency exchange rates. TJX recognizes all derivative...

  • Page 73
    ...estimate for related legal costs at the time such costs are both probable and reasonably estimable. New Accounting Standards: In September 2006, the FASB issued Statement of Financial Accounting Standards No. 158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans - An...

  • Page 74
    ... store locations and operating performance. Management's plan for the store closures was based on several factors, including market demographics and proximity to other A.J. Wright stores, cash return, sales volume and productivity, recent comparable store sales and profit trends and overall market...

  • Page 75
    ... allocation of direct and incremental distribution and administrative costs relating to the closed stores. No interest expense was allocated to the discontinued operations. The following table presents the net sales and segment profit (loss) of the closed A.J. Wright stores for the last three fiscal...

  • Page 76
    ... of $441.3 million for all notes. We may pay the purchase price in cash, TJX stock or a combination of the two. If the holders exercise their put options, we expect to fund the payment with cash, financing from our short-term credit facility, new long-term borrowings or a combination thereof. There...

  • Page 77
    ... Maxx (United Kingdom) and Winners (Canada). These commitments are typically six months or less in duration. The contracts outstanding at January 27, 2007 covered certain commitments for the first quarter of fiscal 2008. TJX elected not to apply hedge accounting rules to these contracts. The change...

  • Page 78
    ... contracts relating to inventory commitments is reported in current earnings as a component of cost of sales, including buying and occupancy costs. The income statement impact of all other derivative contracts and underlying exposures is reported as a component of selling, general and administrative...

  • Page 79
    ... required to pay insurance, real estate taxes and other operating expenses including, in some cases, rentals based on a percentage of sales which aggregated to approximately one-third of the total minimum rent for the fiscal year ended January 27, 2007 and January 28, 2006, respectively. Following...

  • Page 80
    ... the purchase of inventory. G. Stock Compensation Plans In November 2005, we adopted SFAS No. 123(R), which is a revision of SFAS No. 123. SFAS No. 123(R) supersedes Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees," and amends Statement of Financial Accounting...

  • Page 81
    ... at the time of the grant. Stock Options Pursuant to the Stock Incentive Plan: A summary of the status of TJX's stock options and related Weighted Average Exercise Prices ("WAEP") is presented below (shares in thousands): Fiscal Year Ended January 27, 2007 Options WAEP January 28, 2006 Options WAEP...

  • Page 82
    ..., we issued a market based deferred share award to our acting chief executive officer which is indexed to our stock price for the sixty-day period beginning February 22, 2007 ("measurement period") whereby the executive can earn up to 94,000 shares of TJX stock. The weighted average grant date fair...

  • Page 83
    ... continuing operations Weighted average common stock outstanding for basic earnings per share calculation Basic earnings per share Diluted earnings per share: Income from continuing operations Add back: Interest expense on zero coupon convertible subordinated notes, net of income taxes Income from...

  • Page 84
    ...Puerto Rico of approximately $1.1 million that may be applied against future taxable income of its HomeGoods operations in Puerto Rico. The future tax benefit of this loss carryforward, which expires in fiscal 2014, has not been recognized. In fiscal 2006, TJX utilized a United Kingdom net operating...

  • Page 85
    ...the Company and provides for certain employees additional retirement benefits based on average compensation. Presented below is financial information relating to TJX's funded defined benefit retirement plan (funded plan) and its unfunded supplemental pension plan (unfunded plan) for the fiscal years...

  • Page 86
    ...the assumed discount rate using the Citigroup Pension Liability Index. We made aggregate cash contributions of $7.4 million, $42.0 million and $27.2 million for fiscal 2007, 2006 and 2005, respectively, to the defined benefit retirement plan and to fund current benefit and expense payments under the...

  • Page 87
    ... of net periodic benefit cost for our pension plans: Funded Plan Fiscal Year Ended Dollars in Thousands January 27, 2007 January 28, 2006 January 29, 2005 January 27, 2007 Unfunded Plan Fiscal Year Ended January 28, 2006 January 29, 2005 Service cost Interest cost Expected return on plan assets...

  • Page 88
    ... to employees who participate in our retirement plan and who retire at age 55 or older with ten or more years of service. During the fourth quarter of fiscal 2006, TJX eliminated this benefit for all active associates and modified the benefit to current retirees enrolled in the plan. The plan...

  • Page 89
    ...financial information relating to the unfunded postretirement medical plan for the fiscal years indicated: Postretirement Medical Fiscal Year Ended Dollars In Thousands January 27, 2007 January 28, 2006 Change in benefit obligation: Benefit obligation at beginning of year Service cost Interest cost...

  • Page 90
    ... $205 182 160 142 131 $502 January 28, 2006 Employee compensation and benefits, current Rent, utilities and occupancy, including real estate taxes Merchandise credits and gift certificates Insurance Sales tax collections and V.A.T. taxes All other current liabilities Accrued expenses and other...

  • Page 91
    ...$544,650 We have a reserve for future obligations of discontinued operations that relates primarily to real estate leases associated with 34 of our A.J. Wright stores (see Note C to the consolidated financial statements) as well as leases of former TJX businesses. The balance in the reserve and the...

  • Page 92
    ...Ireland. Winners, HomeSense and T.K. Maxx accounted for 21% of TJX's net sales for fiscal 2007, 21% of segment profit and 19% of all consolidated assets. All of our other chains operate stores exclusively in the United States with the exception of 14 stores operated in Puerto Rico by Marshalls which...

  • Page 93
    ... is selected financial information related to our business segments: Fiscal Year Ended In Thousands January 27, 2007 January 28, 2006 January 29, 2005 Net sales: Marmaxx Winners and HomeSense T.K. Maxx HomeGoods A.J. Wright(1) Bob's Stores Segment profit (loss):(2) Marmaxx Winners and HomeSense...

  • Page 94
    ...2006 and 2005 have not been adjusted and include activity for all A.J. Wright stores. (2) A one-time, non-cash charge was recorded in the fiscal year ended January 29, 2005 to conform accounting policies with generally accepted accounting principles related to the timing of rent expense. This change...

  • Page 95
    ... the 34 discontinued A.J. Wright stores as discontinued operations - See Note C to the consolidated financial statements. (2) Gross earnings equal net sales less cost of sales, including buying and occupancy costs. The following table summarizes the quarterly amounts of net income that have been...

  • Page 96
    ...commerce exit costs and operating losses, and hurricane related costs including the estimated impact of lost sales, partially offset by a gain from a VISA/MasterCard antitrust litigation settlement. The fourth quarter of fiscal 2006 includes a $47 million income tax benefit, or $0.10 per share, due...

  • Page 97
    ...OF THE BOARD OF DIRECTORS Bernard Cammarata Chairman of the Board, The TJX Companies, Inc. David A. Brandon Chairman and Chief Executive Officer, Domino's Pizza, Inc. Gail Deegan Executive in Residence, Simmons School of Management Babson College Retired Executive Vice President and Chief Financial...

  • Page 98
    ... Group * Ernie Herrman President Winners/HomeSense Michael MacMillan President HomeGoods Nan Stutz President T.K. Maxx Stephanie Morgan Managing Director, U.K. and Ireland A.J. Wright Celia Clancy President Bob's Stores David Farrell President *Combination of T.J. Maxx and Marshalls Arnold Barron...

  • Page 99
    ... transfer and address changes to: Receive and Deliver Department P.O. Box 11002 Church Street Station New York, NY 10286 TRUSTEES Information concerning the Company's operations and financial position is provided in this report and in the Form 10-K filed with the Securities and Exchange Commission...

  • Page 100
    T H E T J X C O M PA N I E S, I N C . 7 7 0 C O C H I T U AT E R O A D FRAMINGHAM, MA 01701 (508) 390-1000 W W W. T J X . C O M