TJ Maxx 2009 Annual Report Download - page 29

If we engage in mergers or acquisitions of new businesses, or divest any of our current businesses, our business will be subject to
additional risks.
We have grown our business in part through mergers and acquisitions and may acquire new businesses or divest
current businesses. Acquisition or divestiture activities may divert attention of management from operating the existing
businesses. We may do a less-than-optimal job of evaluating target companies and their risks and benefits, and
integration of acquisitions can be difficult and time-consuming. Acquisitions may not meet our performance and other
expectations or may expose us to unexpected or greater-than-expected liabilities and risks. Divestiture also involves risks,
such as the risks of exposure on lease obligations, obligations undertaken in the disposition and potential liabilities that
may arise under law as a result of the disposition or the subsequent failure of the acquirer. Failure to execute on mergers or
divestitures in a satisfactory manner could adversely affect our future results of operations and financial condition.
Failure to operate information systems and implement new technologies effectively could disrupt our business or reduce our sales or
profitability.
The efficient operation and successful growth of our business depends on our information systems, including our
ability to operate them effectively and to select and implement new technologies, systems, controls and adequate disaster
recovery systems successfully. The failure of our information systems to perform as designed or our failure to implement
and operate them effectively could disrupt our business or subject us to liability and thereby harm our profitability.
We depend upon strong cash flows from our operations to supply capital to fund our expansion, operations, interest and debt
repayment, stock repurchases and dividends.
Our business depends upon our operations to generate strong cash flow, and to some extent upon the availability of
financing sources, to supply capital to fund our expansions, general operating activities, stock repurchases, dividends,
interest and debt repayment. Our inability to continue to generate sufficient cash flows to support these activities or the
lack of availability of financing in adequate amounts and on appropriate terms when needed could adversely affect our
financial performance including our earnings per share.
General economic and other factors may adversely affect consumer spending, which 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, political and other factors beyond our
control have significant effects on consumer confidence and spending. Consumer spending, in turn, affects sales at
retailers, which may include TJX. Although we benefit from being an off-price retailer, these factors could adversely
affect our sales and performance if we are not able to implement strategies to mitigate them promptly and successfully.
Issues with merchandise quality or safety could damage our reputation, sales and financial results.
Various governmental authorities in the jurisdictions where we 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 with regulatory requirements could result in significant fines or penalties, which could have a material
adverse effect on our financial results. Issues with the quality and safety and genuineness of merchandise, regardless of our
fault, or customer concerns about such issues, could cause damage to our reputation and could result in lost sales,
uninsured product liability claims or losses, merchandise recalls and increased costs, and regulatory, civil or criminal fines
or penalties, any of which could have a material adverse effect on our financial results.
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