TJ Maxx 2015 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2015 TJ Maxx annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet
classification at January 31, 2015:
In thousands Pay Receive
Blended
Contract
Rate
Balance Sheet
Location
Current
Asset
U.S.$
Current
(Liability)
U.S.$
Net Fair
Value in
U.S.$ at
January 31,
2015
Fair value hedges:
Intercompany balances, primarily debt and
related interest
zł 94,073 C$ 32,318 0.3435
Prepaid Exp /
(Accrued Exp) $ 153 $ (81) $ 72
€39,000 £30,988 0.7946
Prepaid Exp /
(Accrued Exp) 2,536 (72) 2,464
€19,850 U.S.$ 22,647 1.1409 Prepaid Exp 108 — 108
U.S.$ 83,401 £55,000 0.6595 (Accrued Exp) — (725) (725)
Economic hedges for which hedge
accounting was not elected:
Diesel contracts Fixed on 1.2M
—1.9M gal per
month
Float on 1.2M
—1.9M gal per
month N/A (Accrued Exp) — (15,324) (15,324)
Merchandise purchase commitments
C$ 322,492 U.S.$ 281,890 0.8741 Prepaid Exp 28,789 — 28,789
C$ 13,426 €9,500 0.7076 Prepaid Exp 183 — 183
£77,722 U.S.$ 123,500 1.5890 Prepaid Exp 6,477 — 6,477
zł 139,215 £25,547 0.1835
Prepaid Exp /
(Accrued Exp) 1,172 (166) 1,006
U.S.$ 12,590 €10,353 0.8223
Prepaid Exp /
(Accrued Exp) 1 (898) (897)
Total fair value of financial instruments $39,419 $(17,266) $ 22,153
The impact of derivative financial instruments on the statements of income during fiscal 2016, fiscal 2015 and
fiscal 2014 are as follows:
Amount of Gain (Loss) Recognized in
Income by Derivative
In thousands
Location of Gain (Loss) Recognized in
Income by Derivative
January 30,
2016
January 31,
2015
February 1,
2014
Fair value hedges:
Intercompany balances, primarily
debt and related interest
Selling, general
and administrative
expenses $ (3,927) $ 7,413 $ 6,099
Economic hedges for which hedge
accounting was not elected:
Diesel contracts Cost of sales, including buying and
occupancy costs (21,797) (16,050) (1,831)
Intercompany billings in Europe,
primarily merchandise related
Cost of sales, including buying and
occupancy costs (5,768) ——
Merchandise purchase
commitments
Cost of sales, including buying and
occupancy costs 49,107 41,554 22,338
Gain recognized in income $ 17,615 $ 32,917 $26,606
Included in the table above are realized gains of $28.5 million in fiscal 2016, $24.3 million in fiscal 2015 and $10.7
million in fiscal 2014, all of which were largely offset by gains and losses on the underlying hedged item.
F-17