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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
----------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 14, 2007
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THE TJX COMPANIES, INC.
(Exact Name of Registrant as Specified in Charter)
DELAWARE 1-4908 04-2207613
- -------- ------ ----------
(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation) Number) Identification No.)
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770 Cochituate Road, Framingham, MA 01701
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (508) 390-1000
N/A
---
(Former name or former address,
if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
1
ITEM 2.02. Results of Operations and Financial Condition
On August 14, 2007, The TJX Companies, Inc. issued a press release that
included financial results for the fiscal quarter ended July 28, 2007. A copy of
the press release is furnished as Exhibit 99.1 hereto.
The information contained in this report, and the exhibit attached hereto,
is being furnished and shall not be deemed to be "filed" for purposes of Section
18 of, or otherwise regarded as filed under, the Securities Exchange Act of
1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by
reference into any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except as shall be expressly set forth by specific reference in
such filing.
ITEM 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit 99.1 Press Release of The TJX Companies, Inc. dated August 14, 2007.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE TJX COMPANIES, INC.
/s/ Nirmal K. Tripathy
Nirmal K. Tripathy
Chief Financial Officer
Dated: August 14, 2007
3
EXHIBIT INDEX
Exhibit Number Description
- -------------- -----------
99.1 Press Release of The TJX Companies, Inc. dated August 14, 2007.
4
Exhibit 99.1
The TJX Companies, Inc. Reports Strong Second Quarter FY08 Operating
Results; Estimates Liability from Computer Systems Intrusion(s)
FRAMINGHAM, Mass.--(BUSINESS WIRE)--Aug. 14, 2007--The TJX
Companies, Inc. (NYSE: TJX), the leading off-price retailer of apparel
and home fashions in the U.S. and worldwide, today announced sales and
earnings results for the second quarter ended July 28, 2007. Net sales
from continuing operations for the second quarter of fiscal 2008
increased 9% to $4.3 billion, and consolidated comparable store sales
increased 5% over last year. Income from continuing operations for the
second quarter was $59 million, and diluted earnings per share from
continuing operations were $.13. The Company estimated its potential
liability from the computer intrusion(s) and recorded an after-tax
charge of $118 million, or $.25 per share, (see below). Excluding this
charge, adjusted diluted earnings per share from continuing operations
for the second quarter were $.38 versus $.29 for the prior year, a 31%
increase and well above the Company's plan.
For the first half of fiscal 2008, net sales from continuing
operations were $8.4 billion, a 7% increase over last year, and
year-to-date consolidated comparable store sales increased 4% over the
prior year. Income from continuing operations was $221 million, and
diluted earnings per share from continuing operations were $.47. These
earnings results include after-tax charges of $130 million, or $.27
per share, related to the unauthorized computer intrusion(s).
Excluding these charges, adjusted diluted earnings per share from
continuing operations for the first half of fiscal 2008 were $.74
versus $.63 for the prior year, a 17% increase.
Carol Meyrowitz, President and Chief Executive Officer of The TJX
Companies, Inc., stated, "Our operating results mark the strongest
second quarter performance in the Company's history and were achieved
on top of very strong performance last year. Importantly, virtually
all of our businesses delivered significant top- and bottom-line
improvement that was in line with or above our plan. Quarterly pre-tax
profit margins continue to benefit from strong comp sales as well as
our focus on cost reduction, trends that began in late 2005. We
believe that our second quarter and year-to-date operating results
speak to the appeal our values have to customers, even in a difficult
consumer environment. As we transition our stores to fall, we are
pleased with the flexibility in our inventory position, which allows
us to be responsive to the abundant opportunities in the marketplace.
Further, we remain confident in our ability to effectively execute our
off-price fundamentals and continue to drive solid growth.
"We have continued to learn more about the computer intrusion(s)
and are now able to estimate the Company's liability. Over the past
months, we have worked diligently to further strengthen the security
of our computer systems. Our customers remain our top priority, and I
sincerely thank them for their support during this time."
Impact of Computer Intrusion(s) Charges
In the second quarter of fiscal 2008, the Company recorded an
after-tax cash charge of approximately $118 million, or $.25 per
share, with respect to the previously announced computer intrusion(s).
This charge includes $11 million (after tax), or $.02 per share, for
costs incurred during the quarter, as well as a reserve of $107
million (after tax), or $.23 per share, for the Company's exposure to
potential losses. This reserve reflects the Company's estimation of
probable losses, in accordance with generally accepted accounting
principles, based on the information available to the Company as of
August 14, 2007, and includes an estimation of total, potential cash
liabilities from pending litigation, proceedings, investigations and
other claims, as well as legal and other costs and expenses, arising
from the intrusion(s). In addition, TJX expects to incur future
non-cash charges of approximately $21 million (after tax), or $.05 per
share, that are not included in this reserve and could be recorded in
fiscal year 2009. Together, these cash and non-cash charges represent
the Company's best estimate of the total losses the Company expects to
incur as a result of the computer intrusion(s).
Sales by Business Segment
The Company's comparable store sales and net sales by division, in
the second quarter, were as follows:
Second Quarter Second Quarter
Comparable Store Net Sales ($
Sales in millions)
--------------------- --------------
FY2008 FY2007 FY2008 FY2007
- --------------------------------- ---------- ---------- ------- ------
Marmaxx(a) +3% +2% $2,816 $2,659
- --------------------------------- ---- ----- ---- ----- ------- ------
Winners/HomeSense +12% (US$) +17% (US$) $466 $401
+7% (C$) +6% (C$)
- --------------------------------- ---- ----- ---- ----- ------- ------
T.K. Maxx +15% (US$) +13% (US$) $484 $405
+7% (GBP) +10% (GBP)
- --------------------------------- ---- ----- ---- ----- ------- ------
HomeGoods +5% +4% $327 $301
- --------------------------------- ---- ----- ---- ----- ------- ------
A.J. Wright +6% +1% $149 $134
- --------------------------------- ---- ----- ---- ----- ------- ------
Bob's Stores +10% +6% $71 $64
- --------------------------------- ---- ----- ---- ----- ------- ------
- --------------------------------- ---- ----- ---- ----- ------- ------
TJX +5% +4% $4,313 $3,964
- --------------------------------- ---- ----- ---- ----- ------- ------
(a) Combination of T.J. Maxx and Marshalls
Margins
During the second quarter of fiscal 2008, the Company's
consolidated pretax profit margin from continuing operations was 2.1%.
Excluding the intrusion(s) charge, the consolidated pretax profit
margin from continuing operations was 6.7%, a 0.9 percentage point
improvement over the prior year. The gross profit margin from
continuing operations for the fiscal 2008 second quarter was 24.0%, up
0.6 percentage points versus prior year, due to improved merchandise
margins as well as buying and occupancy expense leverage. Selling,
general and administrative costs as a percent of sales was 17.4%, a
0.1 percentage point improvement due to the Company's cost containment
focus as well as leverage on the 5% comparable store sales increase,
partially offset by a planned increase in marketing expense.
Inventory
Total inventories as of July 28, 2007, were $3.1 billion compared
with $2.9 billion at the same time in the prior year. Consolidated
inventories on a per-store basis, including the warehouses, at July
28, 2007, were up 2% versus being down 4% at the same time last year.
At the Marmaxx division, the total inventory commitment, including the
warehouses, stores and merchandise on order, was down versus last year
on a per-store basis.
Share Repurchases
During the second quarter, the Company spent a total of $345
million to repurchase TJX stock, retiring 12.2 million shares.
Repurchases were suspended during most of the first quarter as a
result of the discovery of the computer intrusion(s). The Company
continues to expect to repurchase up to $900 million of TJX stock
during fiscal 2008, as compared to $557 million of TJX stock that the
Company repurchased during fiscal 2007.
Discontinued Operations
The Company reports results from continuing operations, which
exclude the results of operations from 34 discontinued A.J. Wright
stores. These stores were closed during the fourth quarter of fiscal
2007 in order to reposition this business. Discontinued operations did
not impact earnings per share during the second quarter, as the net
income/(loss) from discontinued operations was immaterial.
Third and Fourth Quarters and Fiscal 2008 Outlook
For the third quarter of fiscal 2008, the Company expects earnings
per share from continuing operations in the range of $.53 to $.55,
which represents a 10% to 15% increase over $.48 per share in the
prior year. This outlook is based upon estimated consolidated
comparable store sales growth in the range of 3% to 4%.
For the fiscal year ending January 26, 2008, the Company now
expects earnings per share from continuing operations in the range of
$1.57 - $1.61. Excluding the $130 million after-tax charges related to
the intrusions(s) in the fiscal 2008 first and second quarters, the
Company expects fiscal 2008 earnings per share from continuing
operations in the range of $1.84 to $1.88, which represents a 13% to
15% increase over the $1.63 per share from continuing operations in
fiscal 2007. This outlook is based upon estimated consolidated
comparable store sales growth of 3% to 4% for the full year, and
assumes fourth quarter earnings per share from continuing operations
in the range of $.57 to $.59.
Stores by Concept
TJX increased square footage by 5% over the same period last year.
Store Locations Gross Square Feet
Second Quarter Second Quarter
(in millions)
--------------- -----------------
Beginning End Beginning End
- ------------------------------------ --------- ----- ------------ ----
T.J. Maxx 830 830 25.0 25.0
- ------------------------------------ --------- ----- ------------ ----
Marshalls 763 764 24.4 24.4
- ------------------------------------ --------- ----- ------------ ----
Winners 185 185 5.4 5.4
- ------------------------------------ --------- ----- ------------ ----
HomeSense 69 70 1.7 1.7
- ------------------------------------ --------- ----- ------------ ----
HomeGoods 271 273 6.7 6.7
- ------------------------------------ --------- ----- ------------ ----
T.K. Maxx 211 212 6.4 6.6
- ------------------------------------ --------- ----- ------------ ----
A.J. Wright 127 128 3.3 3.3
- ------------------------------------ --------- ----- ------------ ----
Bob's Stores 35 34 1.6 1.5
- ------------------------------------ --------- ----- ------------ ----
- ------------------------------------ --------- ----- ------------ ----
TJX 2,491 2,496 74.5 74.6
- ------------------------------------ --------- ----- ------------ ----
About The TJX Companies, Inc.
The TJX Companies, Inc. is the leading off-price retailer of
apparel and home fashions in the U.S. and worldwide. The Company
operates 830 T.J. Maxx, 764 Marshalls, 273 HomeGoods, and 128 A.J.
Wright stores, as well as 34 Bob's Stores, in the United States. In
Canada, the Company operates 185 Winners and 70 HomeSense stores, and
in Europe, 212 T.K. Maxx stores. TJX's press releases and financial
information are also available on the Internet at www.tjx.com.
Fiscal 2008 Second Quarter Earnings Conference Call
At 11:00 a.m. ET today, Carol Meyrowitz, President and Chief
Executive Officer of TJX, will hold a conference call with stock
analysts to discuss the Company's second quarter fiscal 2008 results,
operations and business trends. A real-time webcast of the call will
be available at www.tjx.com. A replay of the call will also be
available at www.tjx.com or by dialing (866) 367-5577 through Tuesday,
August 21, 2007.
August Fiscal 2008 Sales Recording
Additionally, the Company expects to release its August 2007 sales
results on Thursday, September 6, 2007, at approximately 8:15 a.m. ET.
Concurrent with that press release, a recorded message with more
detailed information regarding TJX's August sales results, operations
and business trends will be available via the Internet at www.tjx.com,
or by calling (703) 736-7248 through Thursday, September 13, 2007.
Archived versions of the Company's recorded messages and
conference calls are available at www.tjx.com after they are no longer
available by telephone.
Forward-looking Statements
SAFE HARBOR STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995: Various statements made in this release are
forward-looking and involve a number of risks and uncertainties. All
statements that address activities, events or developments that we
intend, expect or believe may occur in the future, including estimates
of losses from the computer intrusion(s), projections of earnings per
share and same store sales, are forward-looking statements. The
following are some of the factors that could cause actual results to
differ materially from the forward-looking statements: the results and
effects of the intrusion or intrusions into our computer system
including the losses and expenses we may incur (which may be different
from the amount we reserved and which differences may be material) and
consequences to our business (including potential effects on our
reputation and our sales) and to the value of our company and related
value of our stock; our ability to successfully expand our store base
and increase same store sales; risks of expansion and costs of
contraction; our ability to successfully implement our opportunistic
inventory strategies and to effectively manage our inventories;
successful advertising and promotion; consumer confidence, demand,
spending habits and buying preferences; effects of unseasonable
weather; competitive factors; factors affecting availability of store
and distribution center locations on suitable terms; factors affecting
our recruitment and employment of associates; factors affecting
expenses; success of our acquisition and divestiture activities; our
ability to successfully implement technologies and systems and protect
data; our ability to continue to generate adequate cash flows; our
ability to execute the share repurchase program; availability and cost
of financing; general economic conditions, including gasoline prices;
potential disruptions due to wars, natural disasters and other events
beyond our control; changes in currency and exchange rates; import
risks; adverse outcomes for any significant litigation; changes in
laws and regulations and accounting rules and principles; adequacy of
reserves; closing adjustments; effectiveness of internal controls; and
other factors that may be described in our filings with the Securities
and Exchange Commission. We do not undertake to publicly update or
revise our forward-looking statements even if experience or future
changes make it clear that any projected results expressed or implied
in such statements will not be realized.
The TJX Companies, Inc. and Consolidated Subsidiaries
Financial Summary
(Unaudited)
(Dollars In Thousands Except Per Share Amounts)
Thirteen Weeks Ended
-----------------------
July 28, July 29,
2007 2006
----------- -----------
Net sales $4,313,298 $3,963,659
Cost of sales, including buying and occupancy
costs 3,277,697 3,034,323
Selling, general and administrative expenses 749,051 693,264
Provision for computer intrusion related costs 195,918 -
Interest (income) expense, net (1,400) 5,413
----------- -----------
Income from continuing operations before
provision for income taxes 92,032 230,659
Provision for income taxes 33,000 91,835
----------- -----------
Income from continuing operations 59,032 138,824
Loss from discontinued operations, net of
income taxes - (668)
----------- -----------
Net income $ 59,032 $ 138,156
=========== ===========
Diluted earnings per share:
Income from continuing operations $ 0.13 $ 0.29
Net income $ 0.13 $ 0.29
Cash dividends declared per share $ 0.09 $ 0.07
Weighted average shares for diluted earnings
per share computation (in millions) 473,319 477,485
The TJX Companies, Inc. and Consolidated Subsidiaries
Financial Summary
(Unaudited)
(Dollars In Thousands Except Per Share Amounts)
Twenty-Six Weeks Ended
-----------------------
July 28, July 29,
2007 2006
----------- -----------
Net sales $8,421,379 $7,834,915
Cost of sales, including buying and occupancy
costs 6,394,912 5,957,172
Selling, general and administrative expenses 1,458,328 1,377,430
Provision for computer intrusion related costs 215,922 -
Interest (income) expense, net (3,476) 9,172
----------- -----------
Income from continuing operations before
provision for income taxes 355,693 491,141
Provision for income taxes 134,553 188,455
----------- -----------
Income from continuing operations 221,140 302,686
Loss from discontinued operations, net of
income taxes - (721)
----------- -----------
Net income $ 221,140 $ 301,965
=========== ===========
Diluted earnings per share:
Income from continuing operations $ 0.47 $ 0.63
Net income $ 0.47 $ 0.63
Cash dividends declared per share $ 0.18 $ 0.14
Weighted average shares for diluted earnings
per share computation (in millions) 476,133 481,438
The TJX Companies, Inc. and Consolidated Subsidiaries
Condensed Balance Sheets
(Unaudited)
(In Millions)
July 28, July 29,
2007 2006
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 533.8 $ 273.7
Accounts receivable and other current assets 447.3 441.8
Current deferred income taxes, net 94.3 13.9
Merchandise inventories 3,050.2 2,923.4
-------- --------
Total current assets 4,125.6 3,652.8
-------- --------
Property and capital leases, net of depreciation 2,107.9 2,019.9
Other assets 203.5 140.6
Goodwill and tradename, net of amortization 182.9 183.2
-------- --------
TOTAL ASSETS $6,619.9 $5,996.5
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt $ - $ 140.9
Accounts payable 1,714.7 1,561.5
Accrued expenses and other current liabilities 1,157.3 1,045.0
-------- --------
Total current liabilities 2,872.0 2,747.4
-------- --------
Other long-term liabilities 781.3 585.3
Long-term debt 812.3 789.1
Shareholders' equity 2,154.3 1,874.7
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $6,619.9 $5,996.5
======== ========
The TJX Companies, Inc. and Consolidated Subsidiaries
Condensed Statements of Cash Flows
(Unaudited)
(In Millions)
Twenty-Six Weeks Ended
----------------------
July 28, July 29,
2007 2006
------------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 221.1 $ 302.0
Depreciation and amortization 181.1 172.5
Deferred income tax provision (66.6) (8.5)
Amortization of stock compensation 30.0 39.0
(Increase) in accounts receivable and other
current assets (146.2) (139.8)
(Increase) in merchandise inventories (433.6) (542.3)
Increase in accounts payable 320.4 239.2
Increase in accrued expenses and other
liabilities 117.7 114.3
Other 0.5 27.7
------------- --------
Net cash provided by operating activities 224.4 204.1
------------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions (217.0) (179.4)
Other 0.3 0.4
------------- --------
Net cash (used in) investing activities (216.7) (179.0)
------------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings of short-term debt - 140.9
Payments for repurchase of common stock (332.6) (375.0)
Proceeds from sale and issuance of common
stock 45.7 72.4
Cash dividends paid (72.5) (59.7)
Other 2.7 (0.9)
------------- --------
Net cash (used in) financing activities (356.7) (222.3)
------------- --------
Effect of exchange rate changes on cash 26.1 5.3
------------- --------
Net (decrease) in cash and cash equivalents (322.9) (191.9)
Cash and cash equivalents at beginning of year 856.7 465.6
------------- --------
Cash and cash equivalents at end of period $ 533.8 $ 273.7
============= ========
The TJX Companies, Inc. and Consolidated Subsidiaries
Selected Information by Major Business Segment
(Unaudited)
(In Thousands)
Thirteen Weeks Ended
-----------------------
July 28, July 29,
Net sales: 2007 2006
----------- -----------
Marmaxx $2,815,636 $2,658,503
Winners and HomeSense 466,158 400,536
T.K. Maxx 484,489 405,440
HomeGoods 327,250 301,347
A.J. Wright 148,526 133,492
Bob's Stores 71,239 64,341
----------- -----------
$4,313,298 $3,963,659
=========== ===========
Segment profit or (loss):
Marmaxx $ 252,023 $ 208,265
Winners and HomeSense 47,590 41,477
T.K. Maxx 16,210 17,971
HomeGoods 8,877 4,198
A.J. Wright (1,663) (3,955)
Bob's Stores (3,476) (4,037)
----------- -----------
319,561 263,919
General corporate expense 33,011 27,847
Provision for computer intrusion related costs 195,918 -
Interest (income) expense, net (1,400) 5,413
----------- -----------
Income from continuing operations before
provision for income taxes $ 92,032 $ 230,659
=========== ===========
The TJX Companies, Inc. and Consolidated Subsidiaries
Selected Information by Major Business Segment
(Unaudited)
(In Thousands)
Twenty-Six Weeks Ended
-----------------------
July 28, July 29,
Net sales: 2007 2006
----------- -----------
Marmaxx $5,545 131 $5,305,205
Winners and HomeSense 860,804 769,346
T.K. Maxx 927,108 754,760
HomeGoods 660,406 607,179
A.J. Wright 292,683 270,746
Bob's Stores 135,247 127,679
----------- -----------
$8,421,379 $7,834,915
=========== ===========
Segment profit or (loss):
Marmaxx $ 524,629 $ 477,784
Winners and HomeSense 74,391 69,563
T.K. Maxx 20,826 17,770
HomeGoods 19,086 12,732
A.J. Wright (4,696) (6,784)
Bob's Stores (10,045) (10,266)
----------- -----------
624,191 560,799
General corporate expense 56,052 60,486
Provision for computer intrusion related costs 215,922 -
Interest (income) expense, net (3,476) 9,172
----------- -----------
Income from continuing operations before
provision for income taxes $ 355,693 $ 491,141
=========== ===========
The TJX Companies, Inc. and Consolidated Subsidiaries
Notes to Consolidated Condensed Statements
1. During the fourth quarter of fiscal 2007 TJX closed 34 of its
A.J. Wright stores and recorded the cost to close the stores, as well
as operating results of the stores, as discontinued operations.
Accordingly, the financial statements for the prior periods ended July
29, 2006 have been adjusted to reclassify the operating results of the
closed stores as discontinued operations.
2. TJX suffered an unauthorized intrusion or intrusions into
portions of its computer system that process and store information
related to credit and debit card, check and unreceipted merchandise
return transactions (the intrusion or intrusions, collectively, the
"Computer Intrusion"), which was discovered during the fourth quarter
of fiscal 2007, and the related theft of customer data, primarily
related to portions of the transactions at its stores (other than
Bob's Stores) during the periods 2003 through June 2004 and mid-May
2006 through mid-December 2006.
In the second quarter of fiscal 2008 the Company recorded an
after-tax second quarter charge of approximately $118 million, or $.25
per share, and an after-tax charge for the first six months of $130
million, or $.27 per share, with respect to the Computer Intrusion.
These after-tax charges include $11 million, or $.02 per share, during
the second quarter and $23 million, or $.04 per share, on a
year-to-date basis, for costs incurred during the respective periods,
as well as a reserve of $107 million, or $.23 per share, for the
Company's estimated exposure to potential losses. This reserve
reflects the Company's estimation of probable losses in accordance
with generally accepted accounting principles based on information
available to the Company as of August 14, 2007, and includes an
estimation of total potential cash liabilities, from pending
litigation, proceedings, investigations and other claims, as well as
legal and other costs and expenses, arising from the Computer
Intrusion. In addition, TJX expects to incur future non-cash charges
of approximately $21 million (after-tax), or $.05 per share, in fiscal
2009. Together, these cash and non-cash charges represent the
Company's best estimate of the total losses the Company expects to
incur as a result of the Computer Intrusion.
3. During the second quarter ended July 28, 2007, TJX repurchased
12.2 million shares of its common stock at a cost of $345 million. On
a year-to-date basis through July 28, 2007, TJX has repurchased 12.4
million shares at a cost of $350 million. Repurchases were suspended
during most of the first quarter as a result of the discovery of the
Computer Intrusion. TJX records the repurchase of its stock on a cash
basis and the amounts reflected in the financial statements may vary
from the above due to the timing of when the repurchases are settled.
Through July 28, 2007, under its current $1 billion multi-year stock
repurchase program, TJX spent $914 million on the repurchase of 34.7
million shares of TJX common stock. In January 2007, the Board of
Directors approved a new stock repurchase program that authorized the
repurchase of up to $1 billion of TJX common stock from time to time,
which was in addition to the $86 million remaining in the existing
plan as of the end of the second quarter.
4. In June 2006, the FASB issued FASB Interpretation No. 48,
"Accounting for Uncertainty in Income Taxes, an interpretation of FASB
Statement No. 109" (FIN 48). FIN 48 clarifies the accounting for
uncertainties in income taxes recognized in an enterprise's financial
statement. FIN 48 requires that TJX determine whether it is more
likely than not that a tax position will be sustained upon examination
by the appropriate taxing authority and if so, recognize the largest
amount of benefit greater than 50% likely of being realized upon
ultimate settlement. FIN 48 must be applied to all existing tax
positions upon initial adoption. TJX adopted FIN 48 in the first
quarter ended April 28, 2007 and the net impact of adoption on its
financial position was immaterial. However, in connection with the
adoption, certain amounts that were historically netted within other
liabilities were reclassed to other assets.
CONTACT: The TJX Companies, Inc.
Sherry Lang
Senior Vice President
Investor and Public Relations
(508) 390-2323