TJ Maxx 2015 Annual Report Download - page 83

Download and view the complete annual report

Please find page 83 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

A summary of the status of our nonvested performance-based stock awards and changes during fiscal 2016 is
presented below:
Shares in thousands
Performance-
based stock
awards
Weighted
Average
Grant Date
Fair Value
Nonvested at beginning of year 1,810 $53.16
Granted 696 70.41
Vested (646) 41.97
Forfeited (84) 61.89
Nonvested at end of year 1,776 $63.57
There were 696,057 shares of performance-based stock awards, with a weighted average grant date fair value of
$70.41, granted in fiscal 2016, 717,500 shares of performance-based stock awards, with a weighted average grant
date fair value of $62.85, granted in fiscal 2015, and 743,576 shares of performance-based stock awards, with a
weighted average grant date fair value of $51.02, granted in fiscal 2014. The fair value of performance-based stock
awards that vested was $27.1 million in fiscal 2016, $21.4 million in fiscal 2015, and $14.2 million in fiscal 2014.
Other Awards: TJX also awards deferred shares to its outside directors under the Stock Incentive Plan. The
outside directors are awarded two annual deferred share awards, each representing shares of TJX common stock
which were valued at $75,000 for fiscal 2016. One award vests immediately and is payable, with accumulated
dividends, in stock at the earlier of separation from service as a director or a change of control. The second award
vests based on service as a director until the annual meeting that follows the award and is payable, with accumulated
dividends, in stock following the vesting date, unless an irrevocable advance election is made whereby it is payable at
the same time as the first award. As of the end of fiscal 2016, a total of 301,654 of these deferred shares were
outstanding under the plan.
Note I. Pension Plans and Other Retirement Benefits
Pension:TJX has a funded defined benefit retirement plan that covers eligible U.S. employees hired prior to
February 1, 2006. No employee contributions are required, or permitted, and benefits are based principally on
compensation earned in each year of service. TJX’s funded defined benefit retirement plan assets are invested in
domestic and international equity and fixed income securities, both directly and through investment funds. The plan
does not invest in TJX securities. TJX also has an unfunded supplemental retirement plan that covers certain key
employees and provides additional retirement benefits based on final average compensation for certain of those
employees (the primary benefit) or, alternatively, based on benefits that would be provided under the funded
retirement plan absent Internal Revenue Code limitations (the alternative benefit).
Presented below is financial information relating to TJX’s funded defined benefit pension plan (qualified pension
plan or funded plan) and its unfunded supplemental pension plan (unfunded plan) for the fiscal years indicated:
Funded Plan
Fiscal Year Ended
Unfunded Plan
Fiscal Year Ended
In thousands
January 30,
2016
January 31,
2015
January 30,
2016
January 31,
2015
Change in projected benefit obligation:
Projected benefit obligation at beginning of year $1,309,889 $ 996,968 $82,238 $59,566
Service cost 50,080 40,481 1,562 1,398
Interest cost 51,710 49,522 3,033 3,001
Actuarial (gains) losses (170,674) 251,144 3,806 19,552
Benefits paid (24,956) (28,348) (5,672) (1,279)
Expenses paid (3,049) (2,945) ——
Plan amendment —3,067 ——
Projected benefit obligation at end of year $1,213,000 $1,309,889 $84,967 $82,238
Accumulated benefit obligation at end of year $1,120,602 $1,203,464 $70,750 $68,591
F-22