TJ Maxx 2009 Annual Report Download - page 30

We are subject to import risks associated with importing merchandise from abroad.
Many of the products sold in our stores are sourced by our vendors and, to a limited extent, by us, in many foreign
countries. As a result, we are subject to the various risks of doing business in foreign markets and importing merchandise
from abroad, such as:
— potential disruptions in supply;
— changes in duties, tariffs, quotas and voluntary export restrictions on imported merchandise;
— strikes and other events affecting delivery;
— consumer perceptions of the safety of imported merchandise;
— product compliance with laws and regulations of the destination country;
— concerns about human rights, working conditions and other labor rights and conditions in foreign countries
where merchandise is produced;
— compliance with laws and regulations concerning ethical business practices, such as the U.S. Foreign Corrupt
Practices Act; 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, 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, although we have implemented policies and procedures designed to facilitate compliance with laws and
regulations relating to doing business in foreign markets and importing merchandise from abroad, there can be no
assurance that our associates, contractors, agents, vendors or other third parties with whom we do business will not
violate such laws and regulations or our policies, which could adversely affect our operations or operating results.
Our expanding international operations increasingly expose us to risks inherent in operating in foreign jurisdictions.
We have a significant retail presence in Canada and Europe, as well as buying offices around the world, and our goal
as a global retailer is to continue 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.
Our results may be adversely affected by fluctuations in the price of oil.
Prices of oil have fluctuated dramatically in the past. Fluctuations may result in an increase in our transportation
costs for distribution, utility costs for our retail stores and costs to purchase our products from suppliers. Continued
volatility in oil prices could adversely affect consumer spending and demand for our products and increase our operating
costs, both of which could have an adverse effect on our performance.
Failuretocomplywithexistinglaws,regulationsandordersorchangesinexistinglawsandregulationscouldnegativelyaffectour
business operations and financial performance.
We are subject to federal, state, provincial and local laws, rules and regulations in the United States and abroad, any
of which may change from time to time, as well as orders and assurances. If we fail to comply with these laws, rules,
regulations and orders, we may be subject to fines or other penalties, which could materially adversely affect our
operations and our financial results and condition. We must also comply with new and changing laws. Further,
U.S. GAAP may change from time to time, and these changes could have material effects on our reported financial
results and condition. In addition, there have been a large number of new legislative and regulatory initiatives and
reforms introduced in the U.S., and the initiatives and reforms that have been and may be enacted may increase our
costs.
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