TJ Maxx 2015 Annual Report Download - page 36

— Internet regulations, including e-commerce, electronic communications and privacy; and
— protection of third party intellectual property rights.
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.
Our results may be materially adversely affected by the outcomes of litigation, legal proceedings and other legal
or regulatory matters.
We are involved, or may in the future become involved, in legal proceedings, regulatory reviews, audits and
other legal matters. These may involve inquiries, investigations, lawsuits and other proceedings by local,
provincial, state and federal governmental entities (in the United States and other countries) and private plaintiffs,
including with respect to tax, escheat, whistleblower claims, employment and employee benefits including
classification, employment rights, discrimination, wage and hour and retaliation, securities, disclosure, real
estate, tort, consumer protection, privacy/data security, product safety, advertising, and intellectual property.
There continue to be a number of employment-related and consumer protection lawsuits, including putative
class actions, in the United States, and we are subject to these types of suits. We cannot predict the results of
legal and regulatory proceedings with certainty, and actual results may differ from any reserves we establish
estimating the probable outcome. Regardless of merit or outcome, litigation can be both time-consuming and
disruptive to our operations and may cause significant expense and diversion of management attention. Legal
and regulatory proceedings and investigations could expose us to significant defense costs, fines, penalties and
liability to private parties and governmental entities for monetary recoveries and other amounts and attorneys’
fees and/or require us to change aspects of our operations, any of which could have a material adverse effect on
our business and results of operations.
Tax matters could adversely affect our results of operations and financial condition.
We are subject to income taxes in the United States and numerous foreign jurisdictions. Our effective
income tax rate and future tax liability could be adversely affected by numerous factors including the results of
tax audits and examinations, income before taxes being lower than anticipated in countries with lower statutory
income tax rates and higher than anticipated in countries with higher statutory income tax rates, changes in
income tax rates, changes in transfer pricing, changes in the valuation of deferred tax assets and liabilities,
changes in applicable tax legislation, regulations and treaties, exposure to additional tax liabilities, including
interest and penalties, and changes in accounting principles and interpretations relating to tax matters, any of
which could adversely impact our results of operations and financial condition in future periods. Significant
judgment is required in evaluating and estimating our worldwide provision and accruals for taxes, and actual
results may differ from our estimations.
In addition, we are subject to the continuous examination of our tax returns and reports by federal, state,
provincial and local tax authorities in the U.S. and foreign countries, and the examining authorities may challenge
positions we take. We are engaged in various proceedings, which are at various stages, with such authorities
with respect to assessments, claims, deficiencies and refunds. We regularly assess the likely outcomes of these
proceedings to determine the adequacy and appropriateness of our provision for income taxes, and increase
and decrease our provision as a result of these assessments. However, the developments in and actual results
of proceedings or the result of rulings by or settlements with tax authorities and courts or due to changes in
facts, law or legal interpretations, expiration of applicable statutes of limitations or other resolutions of tax
positions could differ from the amounts we have accrued for such proceedings in either a positive or a negative
manner, which could materially affect our effective income tax rate in a given financial period, the amount of
taxes we are required to pay and our results of operations. In addition, we are subject to tax audits and
examinations for payroll, value added, sales-based and other taxes relating to our businesses.
Our real estate leases generally obligate us for long periods, which subjects us to financial risks.
We lease virtually all of our store locations, generally for an initial term of 10 years, with options to renew the
term, in the U.S. and Canada or an initial term of 10 to 15 years in Europe. In addition, we either own or lease for
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