TJ Maxx 2009 Annual Report Download - page 50

$198 million in fiscal 2010, $177 million in fiscal 2009 and $151 million in fiscal 2008. We announced our intention to
increase the quarterly dividend on our common stock to $0.15 per share, effective with the dividend payable in June
2010, subject to the approval of our Board of Directors. Financing activities also included proceeds of $170 million in
fiscal 2010, $142 million in fiscal 2009 and $134 million in fiscal 2008 from the exercise of employee stock options.
We traditionally have funded our seasonal merchandise requirements through cash generated from operations,
short-term bank borrowings and the issuance of short-term commercial paper. We have a $500 million revolving credit
facility maturing in May 2010 and a $500 million revolving credit facility maturing in May 2011. TJX pays six basis
points annually on the committed amounts under each of these credit facilities. These agreements have no compensating
balance requirements and have various covenants including a requirement of a specified ratio of debt to earnings. These
agreements serve as backup to our commercial paper program. As of January 30, 2010 and January 31, 2009 there were
no outstanding short-term borrowings. The maximum amount of our U.S. short-term borrowings outstanding was
$165 million during fiscal 2010 and $222 million during fiscal 2009. The weighted average interest rate on our
U.S. short-term borrowings was 1.01% in fiscal 2010.
As of January 30, 2010 and January 31, 2009, our foreign subsidiaries had uncommitted credit facilities. TJX
Canada had two credit lines, a C$10 million credit facility for operating expenses and a C$10 million letter of credit
facility. There were no borrowings under the Canadian credit line for operating expenses in fiscal 2010 or fiscal 2009.
There were no amounts outstanding on the Canadian credit line for operating expenses at the end of fiscal 2010 or fiscal
2009. As of January 30, 2010 and January 31, 2009, TJX Europe had a credit line of £20 million for our European
operations. The maximum amount outstanding under this U.K. credit line was £1.9 million in fiscal 2010 and
£6.1 million in fiscal 2009. There were no outstanding borrowings on this U.K. credit line at the end of fiscal 2010 or
fiscal 2009.
We believe that internally generated funds and our current credit facilities are more than adequate to meet our
operating, debt and capital needs for at least the next twelve months. See Note D to the consolidated financial statements
for further information regarding our long-term debt and other financing sources.
Contractual obligations: As of January 30, 2010, we had payment obligations (including current installments)
under long-term debt arrangements, leases for property and equipment and purchase obligations that will require cash
outflows as follows (in thousands):
Tabular Disclosure of Contractual Obligations Total
Less Than
1 Year
1-3
Years
3-5
Years
More Than
5 Years
Payments Due by Period
Long-term debt obligations including estimated
interest and current installments $1,135,751 $ 42,863 $ 85,725 $ 85,725 $ 921,438
Operating lease commitments 5,695,061 1,005,366 1,771,055 1,307,773 1,610,867
Capital lease obligation 22,945 3,726 7,809 7,824 3,586
Purchase obligations 2,329,719 2,264,578 62,028 3,113 —
Total Obligations $9,183,476 $3,316,533 $1,926,617 $1,404,435 $2,535,891
The long-term debt obligations above include estimated interest costs. The lease commitments in the above table are
for minimum rent and do not include costs for insurance, 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; purchase orders for capital
expenditures, supplies and other operating needs; commitments under contracts for maintenance needs and other
services; and commitments under executive employment and other agreements. We exclude from purchase obligations
long-term agreements for services and operating needs that can be cancelled without penalty.
We also have long-term liabilities which include $254.5 million for employee compensation and benefits, the
majority of which will come due beyond five years, $151.0 million for accrued rent, the cash flow requirements of which
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