TJ Maxx 2015 Annual Report Download - page 33

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Our expanding international operations may expose us to risks inherent in operating in new countries.
We have a significant retail presence in Canada and in countries in Europe and have established buying
offices around the world. We have recently expanded our operations into additional markets in Europe and
Australia and our goal is to continue to expand our operations into other international markets in the future. It
can be costly and complex to establish, develop and maintain international operations and promote business in
new international jurisdictions, which may differ significantly from the U.S. and other countries in which we
currently operate. In addition to facing risks similar to our U.S. and current international operations, such as with
regulations like the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act, there are additional risks
inherent in opening and developing operations in new countries. These additional risks include, among others,
understanding the local retail climate and trends, local customs and cultures, seasonal differences, business
practices and competitive conditions; complying with relevant laws, rules and regulations; developing the
appropriate infrastructure; and identifying suitable partners for local operations and for integration with our
global operations. There are also financial, regulatory and other risks associated with international operations,
including currency exchange fluctuations; potentially adverse tax consequences; limitations on the repatriation
and investment of funds outside of the country where earned; trade regulations; the risk of sudden policy or
regulatory changes; the risk of political, economic and civil instability and labor unrest; and uncertainties
regarding interpretation, application and enforceability of laws and agreements. Any of these risks could
adversely impact our operations, profitability or liquidity. Complying with applicable laws, rules and regulations
and our own internal policies may also require us to spend additional time and resources to implement new
procedures and financial and other controls, conduct audits, train Associates and third parties on our
compliance methods or take other actions, any of which could adversely impact our operations.
We are subject to risks associated with importing merchandise from other countries.
Many of the products sold in our stores are sourced by our vendors and, to a lesser extent, by us, in many
countries outside of the country where the stores are located, particularly southeastern Asia. Where we are the
importer of record, we may be subject to regulatory or other requirements similar to those imposed upon the
manufacturer of such products. We are subject to the various risks of importing merchandise from other
countries and purchasing product made in other countries, such as:
— potential disruptions in manufacturing, logistics and supply;
— changes in duties, tariffs, trade restrictions, quotas and voluntary export restrictions on imported
merchandise;
— transport capacity and costs;
— information technology challenges;
— problems in third-party distribution and warehousing and other interruptions of the supply chain;
— strikes, threats of strikes and other events affecting delivery;
— consumer perceptions of the safety or quality of imported merchandise;
— product and international trade compliance with laws and regulations of the destination country;
— compliance with laws and regulations including changing labor, environmental and other laws in those
countries and those concerning ethical business practices, such as the U.S. Foreign Corrupt Practices
Act and the U.K. Bribery Act;
— product liability claims from customers or penalties from government agencies relating to products that
are recalled, defective or otherwise noncompliant or alleged to be harmful;
— exposure for product warranty and intellectual property issues;
— concerns about human rights, working conditions and other labor rights and conditions in countries where
merchandise is produced;
— concerns about transparent sourcing and supply chains;
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