TJ Maxx 2014 Annual Report Download - page 34

expectations of securities analysts or investors, our share price may decline, and the decrease in the stock price
may be disproportionate to the shortfall in our financial performance. Results may be affected by various factors,
including those described in these risk factors. Most of our operating expenses, such as rent expense and
Associate salaries, do not vary directly with the amount of our sales and are difficult to adjust in the short term.
As a result, if sales in a particular quarter are below our expectations for that quarter, we generally are not able
to proportionately reduce operating expenses for that quarter, resulting in a disproportionate effect on our net
income for the quarter. We maintain a forecasting process that seeks to project sales and align expenses. If we
do not control costs or appropriately adjust costs to actual results, or if actual results differ significantly from our
forecast, our financial performance could be adversely affected. In addition, if we do not repurchase the number
of shares we contemplated pursuant to our stock repurchase programs, our earnings per share may be
adversely affected.
If we engage in mergers or acquisitions or investments in new businesses, or divest, close or consolidate any of
our current businesses, our business will be subject to additional risks.
We may acquire new businesses, invest in or enter into joint ventures with other businesses, develop new
businesses internally and divest, close or consolidate businesses. Acquisition, investment or divestiture activities
may divert attention of management from operating the existing businesses, and we may not effectively evaluate
target companies or investments or assess the risks, benefits and cost of buying, investing in or closing
businesses or of the integration of acquired businesses, all of which can be difficult, time-consuming and
dilutive. Acquisitions and investments may not meet our performance and other expectations and acquisition,
investments, closings and divestitures may expose us to unexpected or greater-than-expected costs, liabilities
and risks. Divestitures, closings and consolidations also involve risks, such as significant costs and obligations
of closure, including exposure on leases, owned real estate and other contractual, employment, pension and
severance obligations, and potential liabilities that may arise under law as a result of the disposition or the
subsequent failure of an acquirer. Failure to execute on mergers, acquisitions, investments, divestitures, closings
and consolidations in a satisfactory manner could adversely affect our future results of operations and financial
condition.
Failure to comply with existing laws, regulations and orders or changes in existing laws and regulations could
negatively affect our business operations and financial performance.
We are subject to federal, state, provincial, regional and local laws, rules and regulations in the United States
and other countries, any of which may change from time to time, as well as orders and assurances. These legal,
regulatory and administrative requirements collectively affect multiple aspects of our business, from the cost of
providing health care and retirement benefits, workforce management, logistics, marketing, import/export,
sourcing and manufacturing, data protection and others. If we fail to comply with these laws, rules, regulations
and orders, we may be subject to judgments, fines or other costs or penalties, which could materially adversely
affect our operations and our financial results and condition. Further, applicable accounting principles and
interpretations may change from time to time, and the changes could have material effects on our reported
financial results and condition.
We must also comply with new and changing laws and regulations, new regulatory initiatives, evolving
interpretation of existing laws by judicial and regulatory authorities, and reforms in jurisdictions where we do
business. These changes could increase our costs of compliance or of doing business and could adversely
affect our operating results, including those involving:
— labor and employment benefits, including regarding labor unions and works councils;
— health and welfare and financial regulations;
— consumer protection and product safety;
— data protection and privacy;
— climate change, supply chain, energy and waste;
— internet regulations, including e-commerce, electronic communications and privacy; and
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