TJ Maxx 2009 Annual Report Download

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An Unconventional Retailer…
The TJX Companies, Inc.
2009 Annual Report

Table of contents

  • Page 1
    The TJX Companies, Inc. An Unconventional Retailer... 2009 Annual Report

  • Page 2
    ... store sales have increased in recessions and recoveries... Customers from a wide range of income brackets find our values compelling... We added >2,000 new vendors in 2009... ...with Sustainable Profitability We ship 30.8 million items to our stores every week... Our store layouts have no walls...

  • Page 3
    ... annual consolidated comp sales have declined only once. ...Our demographic reach is one of the widest in apparel retail. ...Our vast vendor universe now numbers >12,000. and Global Growth ...That works out to inventories turning about 9 times per year in our stores. ...This flexibility enables...

  • Page 4
    ...of earnings per share growth on a continuing operations basis. Overall, we grew total square footage by 3% in 2009, netting 91 additional stores to end the year with 2,743 stores. CONFIDENCE IN TOP-LINE GROWTH Consumers Shift to Value We saw significant increases in customer transactions across all...

  • Page 5
    ...ally, our customer demographic reach is even greater than in the U.S. as we are the only major off-price retailer operating on an international platform. Our customer research tells us that the new customers we gained in 2009 are from a widening range of demographic groups and even more importantly...

  • Page 6
    ... program in 2009 and expect to have 700 of our stores in our new prototype by fall 2010, ahead of the holiday selling season. A Global Sourcing Machine One way to think about our business model is as more of a sourcing machine than most other retailers. We source product globally, operating buying...

  • Page 7
    ... times per year, which, for our customers, means an entirely fresh store about every 40 days! In 2010, we will be investing further in our supply chain to become even more pointed in flowing the right merchandise to the right stores at the right time. Controlling and Levering Costs At TJX, operating...

  • Page 8
    ... driving our profitable growth. Our younger businesses continue to move toward their targeted profit margin potentials. As they expand their store bases, we gain We ship a total of 30.8 million items to our stores in an average week. Our in-store inventories turn an average of about nine times...

  • Page 9
    ... investments in businesses with the strongest financial performance and opportunities. In 2010, we are prioritizing the growth of Marmaxx and TJX Europe. Marmaxx delivered excellent results in 2009, with comparable store sales up a strong 7% and segment profit margin reaching an all-time high...

  • Page 10
    ... HomeGoods had an outstanding year in 2009, sharpening its values and delivering segment profit margins that support our long-term growth plans. A.J. Wright drove store profit contributions in 2009 to levels that give us confidence to ultimately roll out this chain further. At TJX Canada, which also...

  • Page 11
    ... 20%. Our operations generate huge amounts of cash, which we deploy with a careful balance between maintaining our financial flexibility, investing in our growth and distributing excess cash to our shareholders. In 2009, we spent a total of $950 million to repurchase TJX shares, retiring 27 million...

  • Page 12
    ... significant investments to enhance our stores and provide infrastructure for future growth. Simultaneously, we plan to increase the distribution of excess cash to our shareholders. We expect to repurchase $900 million to $1 billion of TJX stock in 2010. Further, we increased the per-share dividend...

  • Page 13
    ... world. To that end, we are introducing our global Corporate Social Responsibility program, V.A.L.U.E., aimed at helping us continue to make a positive, sustainable impact within five major areas that are key to our business and the interests of our shareholders, Associates, customers, vendors and...

  • Page 14
    ... homesense (u.k. & ireland) t.k.maxx (germany) t.k.maxx (poland) 14 24 4 Growing a Global, Off-Price/Value Company 1,703 2,000+ 323 150 550-600 500+ 211 240 $ millions 1,250 1,000 750 500 250 0 06 10 06 (fy) Net Cash from Operating Activities Property Additions Share Repurchases Dividend Payments...

  • Page 15
    ... 10-K Contents Business 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...

  • Page 16
    ...djari s&p b a s e ye a r 2006 2007 2008 2009 2010 The line graph above compares the cumulative performance of TJX'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 TJX's fiscal year for which index data is readily...

  • Page 17
    ... aggregate market value of the voting common stock held by non-affiliates of the registrant on August 1, 2009 was $15,271,706,337, based on the closing sale price as reported on the New York Stock Exchange. There were 409,386,126 shares of the registrant's common stock, $1.00 par value, outstanding...

  • Page 18
    ... 1995, including some of the statements in this Form 10-K under Item 1, "Business," Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," and Item 8, "Financial Statements and Supplementary Data," and in our 2009 Annual Report to Shareholders under "Letter...

  • Page 19
    ...wall décor, decorative accessories, children's furniture, seasonal merchandise and other fashions for the home. The HomeGoods' target customers are similar to those of T.J. Maxx and Marshalls. - A.J. WRIGHT: Launched in 1998, A.J. Wright, like T.J. Maxx and Marshalls, sells off-price family apparel...

  • Page 20
    ... that range from small to very large, and we have the ability to sell product through a geographically diverse network of stores. Importantly, in TJX, we offer vendors an outlet with financial strength and an excellent credit rating. Inventory Management: We offer our customers a rapidly changing...

  • Page 21
    ... new stores is an important part of our strategy for TJX as a global, off-price, value company. The following table provides information on the growth and potential growth of each of our chains: Approximate Average Store Size (square feet) Number of Stores at Year End Fiscal 2009 Fiscal 2010 Fiscal...

  • Page 22
    ... We operate five business segments: three in the U.S. and one in each of Canada and Europe. Each of our segments has its own administrative, buying and merchandising organization and distribution network. Of our U.S.-based stores, T.J. Maxx and Marshalls, referred to as Marmaxx, are managed together...

  • Page 23
    S TO R E L O C AT I O N S We operated stores in the following locations as of January 30, 2010: Stores Located in the United States: T.J. Maxx* Marshalls* HomeGoods* A. J. Wright Alabama Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Idaho Illinois ...

  • Page 24
    ... 2009, we sold Bob's Stores, a value-oriented, branded apparel chain we acquired in fiscal 2004. The loss on the sale and historical results of operations have been accounted for as discontinued operations. SEC Filings and Certifications Copies of our annual reports on Form 10-K, proxy statements...

  • Page 25
    ... our U.S. businesses, we operate stores in Canada and Europe and plan to continue to expand our international operations. Sales made by our stores outside the United States are denominated in the currency of the country in which the store is located, and changes in foreign exchange rates affect the...

  • Page 26
    ... execute our opportunistic buying and inventory management could adversely affect our business. We purchase the majority of our apparel inventory and much of our home inventory opportunistically with our buyers purchasing close to need. To drive traffic to the stores and to increase same store sales...

  • Page 27
    ... model in new product lines, chains and geographic regions. Our strategy is to continue to expand within existing markets and to expand to new markets and geographies. This growth strategy includes developing new ways to sell more or different merchandise within our existing stores, continued...

  • Page 28
    ... the risk that systems and practices will not be implemented uniformly throughout our company and that information will not be appropriately shared across different chains and countries. Unseasonable weather in the markets in which our stores operate or our distribution centers are located could...

  • Page 29
    ... do business regulate the quality and safety of the merchandise we sell in our stores. Regulations and standards in this area, including those related to the Consumer Product Safety Improvement Act of 2008 in the United States, may change from time to time. Our inability to comply on a timely basis...

  • Page 30
    ..., currency exchange rates, labor conditions, transport capacity and costs, compliance with U.S. and foreign laws and regulations and other factors relating to international trade and imported merchandise beyond our control could affect the availability and the price of our inventory. Furthermore...

  • Page 31
    ... acceptable terms or at all, which could cause us to close stores. Our stock price may fluctuate based on market expectations. The public trading of our stock is based in large part on market expectations that our business will continue to grow and that we will achieve certain levels of net income...

  • Page 32
    ...matters could adversely affect our results of operations and financial condition. We are subject to income taxes in both the United States and numerous foreign jurisdictions. Our provision for income taxes and cash tax liability in the future could be adversely affected by numerous factors including...

  • Page 33
    ...payments. The following is a summary of our primary owned and leased distribution centers and primary administrative office locations by segment as of January 30, 2010. Square footage information for the distribution centers represents total "ground cover" of the facility. Square footage information...

  • Page 34
    ... in the financial track of the putative class action with respect to the Computer Intrusion, TJX Companies Retail Security Breach Litigation, Docket No. 07-10162-WGY, MDL Docket No. 1838, and that case and related state court litigation were dismissed. Under the settlement, the Company paid $525,000...

  • Page 35
    ...future. Information on Share Repurchases The number of shares of common stock repurchased by TJX during the fourth quarter of fiscal 2010 and the average price paid per share are as follows: Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Plans or Programs...

  • Page 36
    ... compensation plans: Equity Compensation Plan Information (a) Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (b) Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights (c) Number of Securities Remaining Available for Future Issuance...

  • Page 37
    ... financial data: After-tax return (continuing operations) on average shareholders' equity Total debt as a percentage of total capitalization(3) Stores in operation at fiscal year end: In the United States: T.J. Maxx Marshalls HomeGoods A.J. Wright(4) In Canada: Winners HomeSense In Europe: T.K. Maxx...

  • Page 38
    ..., opening more new stores than planned and adding many new vendors. We are confident in our ability to continue to grow both sales and earnings in fiscal 2011, driving market share with our value proposition and continuing the marketing, inventory management and cost reduction strategies that...

  • Page 39
    ...the benefit of the stock repurchase program. - Consolidated average per store inventories from our continuing operations, including inventory on hand at our distribution centers, were down 10% at the end of fiscal 2010 over the prior year end as compared to a decrease of 6% at the end of fiscal 2009...

  • Page 40
    ... net sales: Fiscal Year Ended January 2010 2009 2008 Net sales Cost of sales, including buying and occupancy costs Selling, general and administrative expenses Provision for Computer Intrusion related costs Interest (income) expense, net Income from continuing operations before provision for income...

  • Page 41
    ... In addition, interest income for fiscal 2010 was less than fiscal 2009 due to considerably lower rates of return on investments more than offsetting higher cash balances available for investment during fiscal 2010. The change in net interest expense in fiscal 2009 compared to fiscal 2008 was driven...

  • Page 42
    ...business segments. In the United States, our T.J. Maxx and Marshalls stores are aggregated as the Marmaxx segment, and each of HomeGoods and A.J. Wright is reported as a separate segment. TJX's stores operated in Canada (Winners and HomeSense) are reported as the TJX Canada segment, and TJX's stores...

  • Page 43
    ...our business segments: U.S. Segments: Marmaxx: Dollars in millions Fiscal Year Ended January 2010 2009 2008 Net sales Segment profit Segment profit as a percentage of net sales Percent increase in same store sales Stores in operation at end of period T.J. Maxx Marshalls Total Marmaxx Selling square...

  • Page 44
    ...fiscal 2011, we plan to add a net of 9 HomeGoods stores and increase selling square footage by 3%. A.J. Wright: Dollars in millions Fiscal Year Ended January 2010 2009 2008 Net sales Segment profit (loss) Segment profit (loss) as a percentage of net sales Percent increase in same store sales Stores...

  • Page 45
    International Segments: TJX Canada: U.S. Dollars in millions Fiscal Year Ended January 2010 2009 2008 Net sales Segment profit Segment profit as a percentage of net sales Percent increase in same store sales Stores in operation at end of period Winners HomeSense Total Selling square footage at end ...

  • Page 46
    ...we plan to open a net of 48 new T.K. Maxx stores in Europe and a net of 6 HomeSense stores in the U.K. for a net total of 54 new stores in Europe. We also plan to expand total TJX Europe selling square footage by 16%. General Corporate Expense: Dollars in millions Fiscal Year Ended January 2010 2009...

  • Page 47
    ... use of cash in fiscal 2009, reflecting higher accruals in fiscal 2010 for performance-based incentive compensation, partially offset by increased funding of the pension plan. Partially offsetting these favorable changes to fiscal 2010 operating cash flows was the change in the deferred income tax...

  • Page 48
    ... for future obligations of discontinued operations that relates primarily to real estate leases associated with the closure of 34 A.J. Wright stores in fiscal 2007, as well as certain leases of former TJX businesses. The balance in the reserve and the activity for the last three fiscal years is...

  • Page 49
    ... Activities: Our cash flows for investing activities include capital expenditures for the last three fiscal years as set forth in the table below: In millions Fiscal Year Ended January 2010 2009 2008 New stores Store renovations and improvements Office and distribution centers Capital expenditures...

  • Page 50
    ..., real estate taxes, other operating expenses and, in some cases, rentals based on a percentage of sales; these items totaled approximately one-third of the total minimum rent for the fiscal year ended January 30, 2010. Our purchase obligations primarily consist of purchase orders for merchandise...

  • Page 51
    ... based on market interest rates, and our estimated long-term 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. The market performance...

  • Page 52
    ...payment during the policy year, offsetting our estimated claims accrual. We had a net accrual of $17.1 million for the unfunded portion of our casualty insurance program as of January 30, 2010. Income taxes: Like many large corporations, our income tax returns are regularly audited by federal, state...

  • Page 53
    ... financial position but could have reduced our pre-tax income from continuing operations for fiscal 2010 by approximately $42 million. I N T E R E S T R AT E R I S K Our cash equivalents, short-term investments and certain lines of credit bear variable interest rates. Changes in interest rates...

  • Page 54
    ... necessarily applies its judgment in evaluating the cost-benefit relationship of implementing possible controls and procedures. (b) Changes in Internal Control Over Financial Reporting Effective January 1, 2010, we implemented a new payroll processing system for our domestic business operations...

  • Page 55
    ...policies or procedures may deteriorate. Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of January 30, 2010 based...

  • Page 56
    ... AND CORPORATE GOVERNANCE The following are the executive officers of TJX as of March 30, 2010: Name Age Office and Employment During Last Five Years Bernard Cammarata 70 Ernie Herrman 49 Carol Meyrowitz 56 Jeffrey G. Naylor 51 Jerome Rossi 66 Paul Sweetenham 45 Chairman of the Board...

  • Page 57
    ... through a website posting or by filing a Current Report on Form 8-K with the Securities and Exchange Commission. I T E M 1 1 . E X E C U T I V E C O M P E N S AT I O N The information required by this Item will appear under the heading "Executive Compensation" in our Proxy Statement, which section...

  • Page 58
    ... Accounts Balance Beginning of Period Amounts Charged to Net Income Write-Offs Against Reserve Balance End of Period In thousands Sales Return Reserve: Fiscal Year Ended January 30, 2010 Fiscal Year Ended January 31, 2009 Fiscal Year Ended January 26, 2008 Discontinued Operations Reserve: Fiscal...

  • Page 59
    ...23, 2009. 4-year Revolving Credit Agreement dated May 5, 2005 among various financial institutions as lenders, including Bank of America, N.A., JP Morgan Chase Bank, National Association, The Bank of New York, Citizens Bank of Massachusetts, Key Bank National Association and Union Bank of California...

  • Page 60
    ... Option Terms and Conditions Granted Under the Stock Incentive Plan (for employees) is incorporated herein by reference to Exhibit 12.2 to the Form 10-Q filed for the quarter ended October 31, 2009.* The Form of a Performance-Based Restricted Stock Award Granted Under Stock Incentive Plan is filed...

  • Page 61
    ... of Independent Registered Public Accounting Firm: The Consent of PricewaterhouseCoopers LLP is filed herewith. Power of Attorney: The Power of Attorney given by the Directors and certain Executive Officers of TJX is filed herewith. Certification Statement of Chief Executive Officer pursuant to...

  • Page 62
    ... has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. THE TJX COMPANIES, INC. /s/ JEFFREY G. NAYLOR Jeffrey G. Naylor, Senior Executive Vice President, Chief Financial and Administrative Officer, on behalf of The TJX Companies, Inc. Dated: March 30...

  • Page 63
    .... /S/ CAROL MEYROWITZ Carol Meyrowitz, President and Chief Executive Officer and Director JOSE B. ALVAREZ* Jose B. Alvarez, Director ALAN M. BENNETT* Alan M. Bennett, Director DAVID A. BRANDON* David A. Brandon, Director BERNARD CAMMARATA* Bernard Cammarata, Chairman of the Board of Directors DAVID...

  • Page 64
    The TJX Companies, Inc. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS For Fiscal Years Ended January 30, 2010, January 31, 2009 and January 26, 2008 Report of Independent Registered Public Accounting Firm ...Consolidated Financial Statements: Consolidated Statements of Income for the fiscal years ended...

  • Page 65
    ...the financial statement schedule, and on the Company's internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform...

  • Page 66
    The TJX Companies, Inc. Consolidated Statements of Income Fiscal Year Ended Amounts in thousands except per share amounts January 30, 2010 January 31, 2009 (53 weeks) January 26, 2008 Net sales Cost of sales, including buying and occupancy costs Selling, general and administrative expenses ...

  • Page 67
    ... Balance Sheets Fiscal Year Ended In thousands January 30, 2010 January 31, 2009 ASSETS Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net Merchandise inventories Prepaid expenses and other current assets Current deferred income taxes, net Total current...

  • Page 68
    ... payments for repurchase of common stock Proceeds from sale and issuance 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 (decrease) in cash and cash equivalents Cash...

  • Page 69
    ... note L) Cash dividends declared on common stock Amortization of share-based compensation expense Stock options repurchased by TJX Issuance of common stock under stock incentive plan and related tax effect Common stock repurchased Balance, January 26, 2008 Comprehensive income: Net income (Loss) due...

  • Page 70
    ... contracts; store occupancy costs (including real estate taxes, utility and maintenance costs and fixed asset depreciation); the costs of operating our distribution centers; payroll, benefits and travel costs directly associated with buying inventory; and systems costs related to the buying and...

  • Page 71
    ... Black-Scholes option pricing model. See Note H for a detailed discussion of share-based compensation. Interest: TJX's interest expense (income) is presented as a net amount. The following is a summary of net interest: Dollars in thousands January 30, 2010 Fiscal Year Ended January 31, 2009 January...

  • Page 72
    ... of exchange rate changes on Winners' reported goodwill. Tradename is the value assigned to the name "Marshalls," acquired by TJX in fiscal 1996 as part of the acquisition of the Marshalls chain. The value of the tradename was determined by the discounted present value of assumed after-tax royalty...

  • Page 73
    ... "selling, general and administrative expenses" to "cost of sales, including buying and occupancy costs" to be consistent with the fiscal 2010 presentation. This reclassification had no impact on net income or total cash flows as previously reported. B. Provision for Computer Intrusion related costs...

  • Page 74
    ...: In thousands Fiscal Year Ended January 2009 2008 (Loss) from discontinued operations before provision for income taxes Tax benefits (Loss) from discontinued operations, net of income taxes $(56,980) 22,711 $(34,269) $(17,398) 6,716 $(10,682) D. Long-Term Debt and Credit Lines The table below...

  • Page 75
    ... shares of TJX common stock at a rate of 32.667 shares per note. TJX paid $2.3 million to redeem the remaining 2,886 notes outstanding that were not converted. Prior to fiscal 2010, a total of 52,557 notes were either converted into common shares of TJX or put back to the Company. On April 7, 2009...

  • Page 76
    ... for the year. TJX elected not to apply hedge accounting rules to these contracts. The change in the fair value of the hedge agreements resulted in a gain of $4.5 million in fiscal 2010 and a loss of $4.9 million in fiscal 2009 both of which are reflected in earnings as a component of cost of sales...

  • Page 77
    ...of cost of sales, including buying and occupancy costs. Until the fourth quarter of fiscal 2009, TJX entered into foreign currency forward and swap contracts in both Canadian dollars and British pound sterling and accounted for them as hedges of the net investment in and between foreign subsidiaries...

  • Page 78
    ... instruments and related fair values outstanding at January 30, 2010: Net Fair Value in US$ at Asset (Liability) January US$ US$ 30, 2010 In thousands Pay Blended Contract Receive Rate Balance Sheet Location Hedge accounting not elected: Diesel contracts Merchandise purchase commitments Fixed...

  • Page 79
    ... rate swap fixed to floating on notional of $50,000 Intercompany balances, primarily short-term debt and related interest Interest expense, net Interest expense, net Selling, general & administrative expenses Cost of sales, including buying and occupancy costs Cost of sales, including buying...

  • Page 80
    ... under our executive savings plan are invested in securities traded in active markets and carried at unadjusted quoted prices. As a result of its international operating and financing activities, TJX is exposed to market risks from changes in interest and foreign currency exchange rates, which may...

  • Page 81
    ... for future grants as of January 30, 2010. TJX issues shares from authorized but unissued common stock. Total compensation cost related to share-based compensation was $33.5 million net of income taxes of $21.6 million in fiscal 2010, $31.2 million net of income taxes of $20.1 million in fiscal 2009...

  • Page 82
    ... Treasury yield curve in effect at the time of grant. Stock Options: A summary of the status of TJX's stock options and related Weighted Average Exercise Prices ("WAEP") is presented below (shares in thousands): January 30, 2010 Options WAEP Fiscal Year Ended January 31, 2009 Options WAEP (53 weeks...

  • Page 83
    ...which began in fiscal 2009 and initiated another multi-year $1 billion stock repurchase program approved in September 2009. We repurchased and retired 27.0 million shares of our common stock at a cost of $949.9 million during fiscal 2010. TJX reflects stock repurchases in its financial statements on...

  • Page 84
    .... The weighted average common shares for the diluted earnings per share calculation exclude the impact of outstanding stock options if the assumed proceeds per share of the option is in excess of the related fiscal year's average price of TJX's common stock. Such options are excluded because...

  • Page 85
    ... in fiscal 2008. TJX had net deferred tax (liabilities) assets as follows: Fiscal Year Ended January 30, January 31, 2010 2009 In thousands Deferred tax assets: Foreign tax credit carryforward Reserve for discontinued operations Pension, stock compensation, postretirement and employee benefits...

  • Page 86
    ... U.S. tax purposes, incurred net operating losses of $11.4 million in fiscal 2010, $15.0 million in fiscal 2009 and $14.4 million in fiscal 2008 for tax and financial reporting purposes. The losses were fully utilized in each year to reduce TJX's current U.S. taxable income. Any future utilization...

  • Page 87
    ... employees. 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 indicated: Funded Plan Fiscal Year Ended January 30, January 31, 2010 2009 (53 weeks) Unfunded...

  • Page 88
    ... thousands Funded Plan Fiscal Year Ended January 30, January 31, 2010 2009 (53 weeks) Unfunded Plan Fiscal Year Ended January 30, January 31, 2010 2009 (53 weeks) Change in plan assets: Fair value of plan assets at beginning of year Actual return on plan assets Employer contribution Benefits paid...

  • Page 89
    ... payments under the unfunded supplemental retirement plan in fiscal 2011. Following are the components of net periodic benefit cost and other amounts recognized in other comprehensive income related to our pension plans: Funded Plan Fiscal Year Ended January 30, January 31, January 26, 2010 2009...

  • Page 90
    ...570) (6,615) 700 $ 7,779 Pension plan assets are reported at fair value. Investments in equity securities traded on a national securities exchange are valued at the composite close price, as reported in the Wall Street Journal, as of the financial statement date. This information is provided by the...

  • Page 91
    ... of plan assets as of the valuation date for the fiscal years presented: Actual Allocation for Fiscal Year Ended January 30, January 31, 2010 2009 Target Allocation Equity securities Fixed income All other-primarily cash 50% 50% - 47% 37% 16% 48% 50% 2% We employ a total return investment...

  • Page 92
    ... Liabilities TJX has a reserve for future obligations of discontinued operations that relates primarily to real estate leases associated with 34 discontinued A.J. Wright stores as well as leases of former TJX businesses. The balance in the reserve and the activity for the last three fiscal years is...

  • Page 93
    ... do not expect to incur any material costs related to these discontinued operations in excess of the amounts estimated. We estimate that the majority of the discontinued operations reserve will be paid in the next three to five years. The actual timing of cash outflows will vary depending on how the...

  • Page 94
    ...Q. Segment Information TJX operates five business segments, three in the United States and one each in Canada and Europe. Each of our segments has its own administrative, buying and merchandising organization and distribution network. Of our U.S. based store chains, T.J. Maxx and Marshalls, referred...

  • Page 95
    ...Net sales:(1) In the United States Marmaxx HomeGoods A.J. Wright TJX Canada TJX Europe Segment profit (loss):(1) In the United States Marmaxx HomeGoods A.J. Wright TJX Canada TJX Europe General corporate expense Provision for Computer Intrusion related costs(2) Interest expense (income), net Income...

  • Page 96
    ... per share (1) Gross earnings equal net sales less cost of sales, including buying and occupancy costs. (2) Certain amounts in the prior period statements of income have been reclassified from "selling, general and administrative expenses" to "cost of sales, including buying and occupancy costs" to...

  • Page 97
    ... Lane Retired Managing Director, Global Retailing Investment Banking Group Merrill Lynch & Co., Inc. Carol Meyrowitz President and Chief Executive Officer, The TJX Companies, Inc. John F. O'Brien Lead Director, The TJX Companies, Inc. Retired Chief Executive Officer, Allmerica Financial Corporation...

  • Page 98
    ... Chief Executive Officer SENIOR VICE PRESIDENTS Alfred Appel Corporate Tax and Insurance Marc Boesch Global Procurement DIVISIONAL LEADERSHIP UNITED STATES The Marmaxx Group* Michael MacMillan President HomeGoods Nan Stutz President A.J. Wright Celia Clancy President TJX CANADA Winners/HomeSense...

  • Page 99
    ... Vice President, Global Communications 508-390-2323 EXECUTIVE OFFICES Framingham, Massachusetts 01701 PUBLIC INFORMATION AND SEC FILINGS: Visit our corporate website: www.tjx.com FOR THE STORE NEAREST YOU, CALL OR VISIT US ONLINE AT: United States T.J. Maxx: 1-800-2-TJMAXX www.tjmaxx.com Marshalls...

  • Page 100
    ..., accent furniture, lamps, and accessories for the home. UnITed STATeS TJX CAnAdA T.J. Maxx was founded in 1976, and together with Marshalls, forms The Marmaxx Group, the largest off-price retailer of apparel and home fashions in the U.S. T.J. Maxx operated 890 stores in 48 states at year-end 2009...

  • Page 101
    The TJX Companies, Inc. 770 Cochituate Road Framingham, MA 01701 508-390-1000 www.tjx.com