TJ Maxx 2009 Annual Report Download - page 91

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market value of the investments in the common/collective trusts are determined based on net asset value as reported by
their fund managers.
The following is a summary of our target allocation for plan assets along with the actual allocation of plan assets as of
the valuation date for the fiscal years presented:
Target Allocation
January 30,
2010
January 31,
2009
Actual Allocation for
Fiscal Year Ended
Equity securities 50% 47% 48%
Fixed income 50% 37% 50%
All other—primarily cash — 16% 2%
We employ a total return investment approach whereby a mix of equities and fixed income investments is used to
seek to maximize the long-term return on plan assets with a prudent level of risk. Risks are sought to be mitigated
through asset diversification and the use of multiple investment managers. Investment risk is measured and monitored
on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements and periodic asset/
liability studies.
TJX also sponsors an employee savings plan under Section 401(k) of the Internal Revenue Code for all eligible
U.S. employees. Assets under the plan totaled $676.4 million as of December 31, 2009 and $529.5 million as of
December 31, 2008 and are invested in a variety of funds. Employees may contribute up to 50% of eligible pay, subject
to limitation. TJX matches employee contributions, up to 5% of eligible pay, at rates ranging from 25% to 50%, based
upon TJX’s performance. Employees hired after February 1, 2006 are eligible for participation in the 401(k) plan with an
enhanced matching formula beginning five years after hire date. TJX contributed $13.3 million in fiscal 2010,
$8.6 million in fiscal 2009 and $10.2 million in fiscal 2008 to the 401(k) plan. Employees cannot invest their
contributions in the TJX stock fund option in the 401(k) plan, and may elect to invest up to only 50% of TJX’s
contribution in the TJX stock fund. The TJX stock fund has no other trading restrictions. The TJX stock fund represents
4.5% of plan investments at December 31, 2009, 3.3% at December 31, 2008 and 3.5% at December 31, 2007.
TJX also has a nonqualified savings plan for certain U.S. employees. TJX matches employee contributions at various
rates which amounted to $1.9 million in fiscal 2010, $425,432 in fiscal 2009 and $1.2 million in fiscal 2008. TJX
transfers employee withholdings and the related company match to a separate trust designated to fund the future
obligations. The trust assets, which are invested in a variety of mutual funds, are included in other assets on the balance
sheets.
In addition to the plans described above, we also maintain retirement/deferred savings plans for all eligible associates
at our foreign subsidiaries. We contributed $4.6 million for these plans in fiscal 2010, $4.2 million in fiscal 2009 and
$4.1 million in fiscal 2008.
Postretirement Medical: TJX has an unfunded postretirement medical plan that provides limited postretirement
medical and life insurance benefits to retirees who participate in its retirement plan and who retired at age 55 or older
with ten or more years of service. During the fourth quarter of fiscal 2006, TJX eliminated this benefit for all active
associates and modified the benefit to cover only retirees enrolled in the plan at that time. The plan amendment replaces
the previous medical benefits with a defined amount (up to $35.00 per month) that approximates the cost of enrollment
in the Medicare Plan for retirees enrolled in the plan at the time of modification.
TJX paid $253,000 of benefits in fiscal 2010 and will pay similar amounts over the next several years. The post
retirement medical liability as of January 30, 2010 is estimated at $1.6 million, of which $1.4 million is included in non-
current liabilities on the balance sheet.
The amendment to plan benefits in fiscal 2006 resulted in a negative plan amendment of $46.8 million which is
being amortized into income over the average remaining life of the active plan participants. The unamortized balance of
$26.8 million as of January 30, 2010 is included in accumulated other comprehensive income (loss) of which
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