TJ Maxx 2006 Annual Report Download - page 30

Consumer spending is adversely affected by general economic and other factors, which are beyond our control, and could
adversely affect our sales and operating results.
Interest rates; recession; inflation; deflation; consumer credit availability; consumer debt levels; energy costs; tax
rates and policy; unemployment trends; threats or possibilities of war, terrorism or other global or national unrest;
actual or threatened epidemics; political or financial instability; and general economic and other factors have significant
effects on consumer confidence and spending, which in turn affect sales at TJX and other retailers. These factors are
beyond our control and could adversely affect our sales and performance.
We are subject to import risks.
Many of the products sold in our stores are sourced by our vendors and to a limited extent by us in many foreign
countries. Imported merchandise is subject to various risks, including potential disruptions in supply, changes in
duties, tariffs, quotas and voluntary export restrictions on imported merchandise, strikes and other events affecting
delivery; and economic, political or other problems in countries from or through which merchandise is imported.
Political or financial instability, trade restrictions, tariffs, currency exchange rates, transport capacity and costs and
other factors relating to international trade and imported merchandise are beyond our control and could affect the
availability and the price of our inventory.
Our expanding international operations expose us to risks inherent in foreign operations.
We have a significant presence in Canada, the United Kingdom and Ireland, and have plans to expand into
Germany in fiscal 2008. We may also seek to expand into other international markets in the future. Our foreign
operations encounter risks similar to those faced by our U.S. operations, as well as risks inherent in foreign operations,
such as understanding the retail climate and trends, local customs and competitive conditions in foreign markets,
complying with foreign laws, rules and regulations, and foreign currency fluctuations, which could have an adverse
impact on our profitability.
Changes in laws and regulations and accounting rules and principles could negatively affect our business operations and
financial performance.
Various aspects of our operations are subject to federal, 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 performance.
We maintain internal controls over financial reporting, but they cannot provide absolute assurance that there will not be
material errors in our financial reporting.
We maintain a system of internal controls over financial reporting, but there are limitations inherent in internal
control systems. If we are unable to maintain adequate and effective internal control over financial reporting, our
financial performance could be adversely affected. A control system, no matter how well conceived and operated, can
provide only reasonable, not absolute, assurance that the objectives of the control system are met. In addition, the
design of a control system must reflect the fact that there are resource constraints and the benefit of controls must be
appropriate relative to their costs.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None
ITEM 2. PROPERTIES
We lease virtually all of our store locations, generally for 10 years with an option to extend the lease for one or more
5-year periods. We have the right to terminate some of these leases before the expiration date under specified
circumstances and for specified payments.
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