TJ Maxx 2009 Annual Report Download - page 74

our current estimation of total potential cash liabilities from pending litigation, proceedings, investigations and other
claims, as well as legal, ongoing monitoring and other costs and expenses, arising from the Computer Intrusion. As an
estimate, our reserve is subject to uncertainty, and our actual costs may vary from our current estimate, and such
variations may be material. We may decrease or increase the amount of our reserve to adjust for developments in the
course and resolution of litigation, claims and investigations and related expenses, insurance proceeds and changes in our
estimates.
C. Discontinued Operations
Sale of Bob’s Stores: Infiscal2009,TJXsoldBob’sStoresandrecordedasacomponentofdiscontinuedoperationsa
loss on disposal (including expenses relating to the sale) of $19.0 million, net of tax benefits of $13.0 million. The net
carrying value of Bob’s Stores assets sold was $33 million, which consisted primarily of merchandise inventory of
$56 million, offset by merchandise payable of $21 million. The loss on disposal reflects sales proceeds of $7.2 million as
well as expenses of $5.8 million relating to the sale. TJX remains contingently liable on 7 of the Bob’s Stores leases which
are discussed in Note N to the consolidated financial statements.
TJX also reclassified the operating results of Bob’s Stores for all periods prior to the sale as a component of
discontinued operations. The following table presents the net sales, segment profit (loss) and after-tax loss from
operations reclassified to discontinued operations for all periods prior to the sale of Bob’s Stores:
In thousands 2009 2008
Fiscal Year Ended January
Net sales $148,040 $310,400
Segment (loss) (25,524) (17,398)
After-tax (loss) from operations (15,314) (10,682)
The table below summarizes the pre-tax and after-tax loss from discontinued operations for fiscal 2009 and fiscal
2008:
In thousands 2009 2008
Fiscal Year Ended January
(Loss) from discontinued operations before provision for income taxes $(56,980) $(17,398)
Tax benefits 22,711 6,716
(Loss) from discontinued operations, net of income taxes $(34,269) $(10,682)
D. Long-Term Debt and Credit Lines
The table below presents long-term debt, exclusive of current installments, as of January 30, 2010 and January 31,
2009. All amounts are net of unamortized debt discounts. Capital lease obligations are separately presented in Note G.
In thousands
January 30,
2010
January 31,
2009
General corporate debt:
4.20% senior unsecured notes, maturing August 15, 2015 (effective interest rate of
4.20% after reduction of unamortized debt discount of $29 in fiscal 2010) $399,971 $—
6.95% senior unsecured notes, maturing April 15, 2019 (effective interest rate of
6.98% after reduction of unamortized debt discount of $646 in fiscal 2010) 374,354 —
Total general corporate debt 774,325 —
Subordinated debt:
Zero coupon convertible subordinated notes (net of reduction of unamortized debt
discount of $99,360 in fiscal 2009) —365,583
Total subordinated debt —365,583
Long-term debt, exclusive of current installments $774,325 $365,583
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