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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jan. 30, 2010	Aug. 01, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	TJX COMPANIES INC /DE/
Entity Central Index Key	0000109198
Document Type	10-K
Document Period End Date	Jan. 30, 2010
Amendment Flag	false
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--01-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$ 15,271,706,337
Entity Common Stock, Shares Outstanding	409,386,126

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 30, 2010	Jan. 31, 2009	Jan. 26, 2008
Consolidated Statements of Income [Abstract]
Net sales	$ 20,288,444	$ 18,999,505	$ 18,336,726
Cost of sales, including buying and occupancy costs	14,968,429	14,429,185	13,883,952
Selling, general and administrative expenses	3,328,944	3,135,589	2,997,263
Provision (credit) for Computer Intrusion related costs		(30,500)	197,022
Interest expense (income), net	39,509	14,291	(1,598)
Income from continuing operations before provision for income taxes	1,951,562	1,450,940	1,260,087
Provision for income taxes	737,990	536,054	477,655
Income from continuing operations	1,213,572	914,886	782,432
(Loss) from discontinued operations, net of income taxes		(34,269)	(10,682)
Net income	$ 1,213,572	$ 880,617	$ 771,750
Basic earnings per share:
Income from continuing operations	$ 2.9	$ 2.18	$ 1.77
(Loss) from discontinued operations, net of income taxes		(0.08)	(0.03)
Net income	$ 2.9	$ 2.1	$ 1.74
Weighted average common shares - basic	417,796	419,076	443,050
Diluted earnings per share:
Income from continuing operations	$ 2.84	$ 2.08	$ 1.68
(Loss) from discontinued operations, net of income taxes		(0.08)	(0.02)
Net income	$ 2.84	$ 2	$ 1.66
Weighted average common shares - diluted	427,619	442,255	468,046
Cash dividends declared per share	$ 0.48	$ 0.44	$ 0.36

Consolidated Balance Sheets - USD ($) $ in Thousands	12 Months Ended
Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 30, 2010	Jan. 31, 2009
Current assets:
Cash and cash equivalents	$ 1,614,607	$ 453,527
Short-term investments	130,636	0
Accounts receivable, net	148,126	143,500
Merchandise inventories	2,532,318	2,619,336
Prepaid expenses and other current assets	255,707	274,091
Current deferred income taxes, net	122,462	135,675
Total current assets	4,803,856	3,626,129
Property at cost:
Land and buildings	281,527	280,278
Leasehold costs and improvements	1,930,977	1,728,362
Furniture, fixtures and equipment	3,087,419	2,784,316
Total property at cost	5,299,923	4,792,956
Less accumulated depreciation and amortization	3,026,041	2,607,200
Net property at cost	2,273,882	2,185,756
Property under capital lease, net of accumulated amortization of $19,357 and $17,124, respectively	13,215	15,448
Other assets	193,230	171,381
Goodwill and tradename, net of amortization	179,794	179,528
TOTAL ASSETS	7,463,977	6,178,242
Current liabilities:
Current installments of long-term debt	0	392,852
Obligation under capital lease due within one year	2,355	2,175
Accounts payable	1,507,892	1,276,098
Accrued expenses and other current liabilities	1,248,002	1,096,766
Federal,foreign and state income taxes payable	136,737	0
Total current liabilities	2,894,986	2,767,891
Other long-term liabilities	697,099	765,004
Non-current deferred income taxes, net	192,447	127,008
Obligation under capital lease, less portion due within one year	15,844	18,199
Long-term debt, exclusive of current installments	$ 774,325	$ 365,583
Commitments and contingencies
SHAREHOLDERS' EQUITY
Common stock, authorized 1,200,000,000 shares, par value $1, issued and outstanding 409,386,126 and 412,821,592, respectively	$ 409,386	$ 412,822
Additional paid-in capital	0	0
Accumulated other comprehensive income (loss)	(134,124)	(217,781)
Retained earnings	2,614,014	1,939,516
Total shareholders' equity	2,889,276	2,134,557
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 7,463,977	$ 6,178,242

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jan. 30, 2010	Jan. 31, 2009	Jan. 26, 2008
Cash flows from operating activities:
Net income	$ 1,213,572	$ 880,617	$ 771,750
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	435,218	401,707	369,396
Assets of discontinued operation sold		31,328
Loss on property disposals and impairment charges	10,270	23,903	25,944
Deferred income tax provision (benefit)	53,155	132,480	(101,799)
Amortization of share-based compensation expense	55,145	51,229	57,370
Excess tax benefits from stock compensation expense	(17,494)	(18,879)	(6,756)
Changes in assets and liabilities:
(Increase) in accounts receivable	(1,862)	(8,245)	(25,516)
Decrease (increase) in merchandise inventories	147,805	(68,489)	(112,411)
Decrease (increase) in prepaid expenses and other current assets	21,219	(118,830)	2,144
Increase (decrease) in accounts payable	197,496	(141,580)	117,304
Increase (decrease) in accrued expenses and other liabilities	31,046	(34,525)	202,893
Increase (decrease) in income taxes payable	152,851	(10,488)	37,909
Other	(26,495)	34,344	36,546
Net cash provided by operating activities	2,271,926	1,154,572	1,374,774
Cash flows from investing activities:
Property additions	(429,282)	(582,932)	(526,987)
Proceeds (payments) to settle net investment hedges		14,379	(13,667)
Purchase of short-term investments	(278,692)
Sales and maturities of short-term investments	153,275
Other	(5,578)	(34)	753
Net cash (used in) investing activities	(560,277)	(568,587)	(539,901)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	774,263
Principal payments on current portion of long-term debt	(393,573)
Cash payments for debt issuance expenses	(7,202)
Payments on capital lease obligation	(2,174)	(2,008)	(1,854)
Cash payments for repurchase of common stock	(944,762)	(751,097)	(940,208)
Proceeds from sale and issuance of common stock	169,862	142,154	134,109
Excess tax benefits from stock compensation expense	17,494	18,879	6,756
Cash dividends paid	(197,662)	(176,749)	(151,492)
Net cash (used in) financing activities	(583,754)	(768,821)	(952,689)
Effect of exchange rate changes on cash	33,185	(96,249)	(6,241)
Net increase (decrease) in cash and cash equivalents	1,161,080	(279,085)	(124,057)
Cash and cash equivalents at beginning of year	453,527	732,612	856,669
Cash and cash equivalents at end of year	$ 1,614,607	$ 453,527	$ 732,612

Consolidated Statements of Shareholders Equity - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 30, 2010	Jan. 31, 2009	Jan. 26, 2008
Statement [Line Items]
Beginning Balance	$ 2,134,557	$ 2,131,245	$ 2,290,121
Comprehensive income:
Net income	1,213,572	880,617	771,750
(Loss)/Gain due to foreign currency translation adjustments	76,678	(171,225)	20,998
(Loss)/Gain on net investment hedge contracts		68,816	(15,823)
(Loss) on cash flow hedge contracts			(1,526)
Recognition of prior service cost and gains (losses)	8,191	(1,206)	1,393
Recognition of unfunded post retirement liabilities	(1,212)	(86,158)
Amount of cash flow hedge reclassified from other comprehensive income to net income		677	429
Total comprehensive income	1,297,229	691,521	777,221
Implementation of accounting for uncertain tax positions (see note K)			(27,178)
Implementation of the measurement provisions relating to retirement obligations (see note L)			(1,808)
Cash dividends declared on common stock	(201,490)	(183,694)	(158,202)
Amortization of share-based compensation expense	55,145	51,229	57,370
Issuance of common stock upon conversion of convertible debt	365,088	41,043
Stock options repurchased by TJX		(987)	(3,266)
Issuance of common stock under stock incentive plan and related tax effect	183,509	155,297	137,195
Common stock repurchased	(944,762)	(751,097)	(940,208)
Ending Balance	2,889,276	2,134,557	2,131,245
Common Stock
Statement [Line Items]
Beginning Balance	$ 412,822	$ 427,950	$ 453,650
Shares, Beginning Balance	412,822	427,950	453,650
Comprehensive income:
Issuance of common stock upon conversion of convertible debt	$ 15,094	$ 1,717
Issuance of common stock upon conversion of convertible debt, Shares	15,094	1,717
Issuance of common stock under stock incentive plan and related tax effect	$ 8,329	$ 7,439	$ 7,253
Issuance of common stock under stock incentive plan and related tax effect, Shares	8,329	7,439	7,253
Common stock repurchased	$ (26,859)	$ (24,284)	$ (32,953)
Common stock repurchased, Shares	(26,859)	(24,284)	(32,953)
Ending Balance	$ 409,386	$ 412,822	$ 427,950
Shares, Ending Balance	409,386	412,822	427,950
Additional Paid-In Capital
Statement [Line Items]
Beginning Balance	$ 0	$ 0	$ 0
Comprehensive income:
Amortization of share-based compensation expense	55,145	51,229	57,370
Issuance of common stock upon conversion of convertible debt	349,994	39,326
Stock options repurchased by TJX		(987)	(3,266)
Issuance of common stock under stock incentive plan and related tax effect	175,180	147,858	129,942
Common stock repurchased	(580,319)	(237,426)	(184,046)
Ending Balance	0	0	0
Retained Earnings
Statement [Line Items]
Beginning Balance	1,939,516	1,731,980	1,870,460
Comprehensive income:
Net income	1,213,572	880,617	771,750
Implementation of accounting for uncertain tax positions (see note K)			(27,178)
Implementation of the measurement provisions relating to retirement obligations (see note L)			(1,641)
Cash dividends declared on common stock	(201,490)	(183,694)	(158,202)
Common stock repurchased	(337,584)	(489,387)	(723,209)
Ending Balance	2,614,014	1,939,516	1,731,980
Accumulated Other Comprehensive Income (Loss)
Statement [Line Items]
Beginning Balance	(217,781)	(28,685)	(33,989)
Comprehensive income:
(Loss)/Gain due to foreign currency translation adjustments	76,678	(171,225)	20,998
(Loss)/Gain on net investment hedge contracts		68,816	(15,823)
(Loss) on cash flow hedge contracts			(1,526)
Recognition of prior service cost and gains (losses)	8,191	(1,206)	1,393
Recognition of unfunded post retirement liabilities	(1,212)	(86,158)
Amount of cash flow hedge reclassified from other comprehensive income to net income		677	429
Implementation of the measurement provisions relating to retirement obligations (see note L)			(167)
Ending Balance	$ (134,124)	$ (217,781)	$ (28,685)

Summary of Accounting Policies

12 Months Ended

Jan. 30, 2010

Summary of Accounting Policies [Abstract]

Summary of Accounting Policies


A.	Summary of Accounting Policies

Basis of Presentation: The consolidated financial statements of The TJX Companies, Inc. (referred to as “TJX” or “we”) include the financial statements of all of TJX’s subsidiaries, all of which are wholly owned. All of its activities are conducted by TJX or its subsidiaries and are consolidated in these financial statements. All intercompany transactions have been eliminated in consolidation.

Fiscal Year: During fiscal 2010, TJX amended its bylaws to provide that its fiscal year will end on the Saturday nearest to the last day of January of each year. Prior to this TJX’s fiscal year ended on the last Saturday of January. This change only affects TJX prospectively by shifting the timing of its next 53 week fiscal year. The fiscal year ended January 30, 2010 (“fiscal 2010”) included 52 weeks, the fiscal year ended January 31, 2009 (“fiscal 2009”) included 53 weeks and the fiscal year ended January 26, 2008 (“fiscal 2008”) included 52 weeks.

Earnings Per Share: All earnings per share amounts discussed refer to diluted earnings per share unless otherwise indicated.

Use of Estimates: The preparation of the financial statements, in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities, at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. TJX considers its accounting policies relating to inventory valuation, impairments of long-lived assets, retirement obligations, share-based compensation, casualty insurance, income taxes, reserves for Computer Intrusion related costs and for discontinued operations, and loss contingencies to be the most significant accounting policies that involve management estimates and judgments. Actual amounts could differ from those estimates, and such differences could be material.

Revenue Recognition: TJX records revenue at the time of sale and receipt of merchandise by the customer, net of a reserve for estimated returns. We estimate returns based upon our historical experience. We defer recognition of a layaway sale and its related profit to the accounting period when the customer receives the layaway merchandise. Proceeds from the sale of store cards as well as the value of store cards issued to customers as a result of a return or exchange, are deferred until the customers use the cards to acquire merchandise. Based on historical experience, we estimate the amount of store cards that will not be redeemed (“store card breakage”) and, to the extent allowed by local law, these amounts are amortized into income over the redemption period. Revenue recognized from store card breakage was $7.8 million in fiscal 2010, $10.7 million in fiscal 2009 and $10.1 million in fiscal 2008.

Consolidated Statements of Income Classifications: Cost of sales, including buying and occupancy costs, includes the cost of merchandise sold and gains and losses on inventory and fuel-related derivative contracts; store occupancy costs (including real estate taxes, utility and maintenance costs and fixed asset depreciation); the costs of operating our distribution centers; payroll, benefits and travel costs directly associated with buying inventory; and systems costs related to the buying and tracking of inventory.

Selling, general and administrative expenses include store payroll and benefit costs; communication costs; credit and check expenses; advertising; administrative and field management payroll, benefits and travel costs; corporate administrative costs and depreciation; gains and losses on non-inventory related foreign currency exchange contracts; and other miscellaneous income and expense items.

Cash and Cash Equivalents: TJX generally considers highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. Investments with maturities greater than three months but less than one year at the date of purchase are included in short-term investments. Our investments are primarily high-grade commercial paper, institutional money market funds and time deposits with major banks.

Merchandise Inventories: Inventories are stated at the lower of cost or market. TJX uses the retail method for valuing inventories on the first-in first-out basis. We almost exclusively utilize a permanent markdown strategy and lower the cost value of the inventory that is subject to markdown at the time the retail prices are lowered in our stores. We accrue for inventory obligations at the time inventory is shipped rather than when received and accepted by TJX. At January 30, 2010 and January 31, 2009, in-transit inventory included in merchandise inventories was $396.8 million and $329.9 million, respectively. Comparable amounts were reflected in accounts payable at those dates.

Common Stock and Equity: Equity transactions consist primarily of the repurchase of our common stock under our stock repurchase programs and the amortization of expense and issuance of common stock under our stock incentive plan. In fiscal 2010, we also issued shares upon conversion of convertible notes called for redemption, discussed in Note D. Under our stock repurchase programs we repurchase our common stock on the open market. The par value of the shares repurchased is charged to common stock with the excess of the purchase price over par first charged against any available additional paid-in capital (“APIC”) and the balance charged to retained earnings. Due to the high volume of repurchases over the past several years, we have no remaining balance in APIC in any of the years presented. All shares repurchased have been retired.

Shares issued under TJX’s stock incentive plan are issued from authorized but unissued shares, and proceeds received are recorded by increasing common stock for the par value of the shares with the excess over par added to APIC. Income tax benefits upon the expensing of options result in the creation of a deferred tax asset, while income tax benefits due to the exercise of stock options reduce deferred tax assets to the extent that an asset for the related grant has been created. Any tax benefits greater than the deferred tax assets created at the time of expensing the options are credited to APIC; any deficiencies in the tax benefits are debited to APIC to the extent a pool for such deficiencies exists. In the absence of a pool any deficiencies are realized in the related periods’ statements of income through the provision for income taxes. Any excess income tax benefits are included in cash flows from financing activities in the statements of cash flows. The par value of restricted stock awards is also added to common stock when the stock is issued, generally at grant date. The fair value of the restricted stock awards in excess of par value is added to APIC as the awards are amortized into earnings over the related vesting periods. Upon the call of our convertible notes most holders of the notes chose to convert into TJX common stock. When converted the face value of the convertible notes less unamortized debt discount was relieved, common stock was credited with the par value of the shares issued and the excess of the carrying value of the convertible notes over par was added to APIC.

Share-Based Compensation: TJX accounts for share based compensation in accordance with U.S. GAAP whereby it estimates the fair value of each option grant on the date of grant using the Black-Scholes option pricing model. See Note H for a detailed discussion of share-based compensation.

Interest: TJX’s interest expense (income) is presented as a net amount. The following is a summary of net interest.



	Fiscal Year Ended
	January 30,			January 31,			January 26,
Dollars in thousands	2010			2009			2008


Interest expense	$	49,278		$	38,123		$	39,926
Capitalized interest		(758	)		(1,647	)		(799	)
Interest (income)		(9,011	)		(22,185	)		(40,725	)

Net interest expense (income)	$	39,509		$	14,291		$	(1,598	)

We capitalize interest during the active construction period of major capital projects. Capitalized interest is added to the cost of the related assets.

Depreciation and Amortization: For financial reporting purposes, TJX provides for depreciation and amortization of property by the use of the straight-line method over the estimated useful lives of the assets. Buildings are depreciated over 33 years. Leasehold costs and improvements are generally amortized over their useful life or the committed lease term (typically 10 years), whichever is shorter. Furniture, fixtures and equipment are depreciated over 3 to 10 years. Depreciation and amortization expense for property was $435.8 million for fiscal 2010, $398.0 million for fiscal 2009 and $364.2 million for fiscal 2008. Amortization expense for property held under a capital lease was $2.2 million in fiscal 2010, 2009 and 2008. Maintenance and repairs are charged to expense as incurred. Significant costs incurred for internally developed software are capitalized and amortized over 3 to 10 years. Upon retirement or sale, the cost of disposed assets and the related accumulated depreciation are eliminated and any gain or loss is included in income. Pre-opening costs, including rent, are expensed as incurred.

Lease Accounting: TJX begins to record rent expense when it takes possession of a store, which is typically 30 to 60 days prior to the opening of the store and generally occurs before the commencement of the lease term, as specified in the lease.

Long-Lived Assets: Presented below is information related to carrying values of our long-lived assets by geographic location:



	January 30,		January 31,		January 26,
Dollars in thousands	2010		2009		2008


United States	$	1,607,733	$	1,631,370	$	1,533,914
TJX Canada		195,434		178,176		217,342
TJX Europe		483,930		391,658		483,879

Total long-lived assets	$	2,287,097	$	2,201,204	$	2,235,135

Goodwill and Tradename: Goodwill is primarily the excess of the purchase price paid over the carrying value of the minority interest acquired in fiscal 1990 in TJX’s former 83%-owned subsidiary and represents goodwill associated with the T.J. Maxx chain. In addition, goodwill includes the excess of cost over the estimated fair market value of the net assets of Winners acquired by TJX in fiscal 1991.

Goodwill totaled $72.1 million as of January 30, 2010, $71.8 million as of January 31, 2009 and $72.2 million as of January 26, 2008. Goodwill is considered to have an indefinite life and accordingly is not amortized. Changes in goodwill are attributable to the effect of exchange rate changes on Winners’ reported goodwill.

Tradename is the value assigned to the name “Marshalls,” acquired by TJX in fiscal 1996 as part of the acquisition of the Marshalls chain. The value of the tradename was determined by the discounted present value of assumed after-tax royalty payments, offset by a reduction for their pro-rata share of negative goodwill acquired. The Marshalls tradename is carried at a value of $107.7 million and is considered to have an indefinite life.

TJX occasionally acquires or licenses other trademarks to be used in connection with private label merchandise. Such trademarks are included in other assets and are amortized to cost of sales, including buying and occupancy costs, over their useful life, generally from 7 to 10 years.

Goodwill, tradename and trademarks, and the related amortization if any, are included in the respective operating segment to which they relate. There is no accumulated impairment related to our goodwill, tradename or trademarks.

Impairment of Long-Lived Assets, Goodwill and Tradename: TJX evaluates its long-lived assets and assets with indefinite lives (other than Goodwill and Tradename) for indicators of impairment whenever events or changes in circumstances indicate their carrying amounts may not be recoverable, and at least annually in the fourth quarter of each fiscal year. An impairment exists when the undiscounted cash flow of an asset or asset group is less than the carrying cost of that asset or asset group. The evaluation for long-lived assets is performed at the lowest level of identifiable cash flows, which is generally at the individual store level. If indicators of impairment are identified, an undiscounted cash flow analysis is performed to determine if an impairment exists. The store-by-store evaluations did not indicate any recoverability issues (for any of our continuing operations) during the past three fiscal years.

Goodwill is tested for impairment whenever events or changes in circumstances indicate that an impairment may have occurred and at least annually in the fourth quarter of each fiscal year, by comparing the carrying value of the related reporting unit to its fair value. An impairment exists when this analysis, using typical valuation models such as the discounted cash flow method, shows that the fair value of the reporting unit is less than the carrying cost of the reporting unit. The fair value of our reporting units, using typical valuation models such as the discounted cash flow method, is considerably higher than the book values, and no impairment has occurred in the last three fiscal years.

Tradename is also tested for impairment whenever events or changes in circumstances indicate that the carrying amount of the tradename may exceed its fair value and at least annually in the fourth quarter of each fiscal year. Testing is performed by comparing the discounted present value of assumed after-tax royalty payments to the carrying value of the tradename. No impairment has occurred in the last three fiscal years.

Advertising Costs: TJX expenses advertising costs as incurred. Advertising expense was $227.5 million for fiscal 2010, $254.0 million for fiscal 2009 and $255.0 million for fiscal 2008.

Foreign Currency Translation: TJX’s foreign assets and liabilities are translated into U.S. dollars at fiscal year end exchange rates with resulting translation gains and losses included in shareholders’ equity as a component of accumulated other comprehensive income (loss). Activity of the foreign operations that affects the statements of income and cash flows is translated at average exchange rates prevailing during the fiscal year.

Loss Contingencies: TJX records a reserve for loss contingencies when it is both probable that a loss has been incurred and the amount of the loss is reasonably estimable. TJX reviews pending litigation and other contingencies at least quarterly and adjusts the reserve for such contingencies for changes in probable and reasonably estimable losses. TJX includes an estimate for related legal costs at the time such costs are both probable and reasonably estimable.

New Accounting Standards: In June 2009, the Financial Accounting Standards Board (“FASB”) established the FASB Accounting Standards Codification (“Codification”), which was effective on July 1, 2009, to become the source of authoritative U.S. GAAP recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of U.S. federal securities laws are also sources of authoritative U.S. GAAP for SEC registrants. Generally, the Codification is not expected to change U.S. GAAP. All other accounting literature excluded from the Codification will be considered non-authoritative. The Codification is effective for financial statements issued for interim and annual periods ending after September 15, 2009. We adopted the new standards for our fiscal year ending January 30, 2010.

In June 2009, FASB issued guidance related to accounting for transfers of financial assets, in order to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial reports about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and the transferor’s continuing involvement in transferred financial assets. This guidance must be applied as of the beginning of each reporting entity’s first annual reporting period that begins after November 15, 2009, for interim periods within that first annual reporting period and for interim and annual reporting periods thereafter. Earlier application is prohibited. This guidance must be applied to transfers occurring on or after the effective date. TJX expects that the adoption of this guidance will have no impact on its financial statements.

Reclassifications: For comparative purposes TJX reclassified $34.4 million in the fiscal 2009 and $42.3 million in the fiscal 2008 Consolidated Statements of Income from “selling, general and administrative expenses” to “cost of sales, including buying and occupancy costs” to be consistent with the fiscal 2010 presentation. This reclassification had no impact on net income or total cash flows as previously reported.

Long-Term Debt and Credit Lines

12 Months Ended

Jan. 30, 2010

Long-Term Debt and Credit Lines [Abstract]

Long-Term Debt and Credit Lines


D.	Long-Term Debt and Credit Lines

The table below presents long-term debt, exclusive of current installments, as of January 30, 2010 and January 31, 2009. All amounts are net of unamortized debt discounts. Capital lease obligations are separately presented in Note G.



	January 30,		January 31,
In thousands	2010		2009


General corporate debt:
4.20% senior unsecured notes, maturing August 15, 2015 (effective interest rate of 4.20% after reduction of unamortized debt discount of $29 in fiscal 2010)	$	399,971	$	—
6.95% senior unsecured notes, maturing April 15, 2019 (effective interest rate of 6.98% after reduction of unamortized debt discount of $646 in fiscal 2010)		374,354		—

Total general corporate debt		774,325		—

Subordinated debt:
Zero coupon convertible subordinated notes (net of reduction of unamortized debt discount of $99,360 in fiscal 2009)		—		365,583

Total subordinated debt		—		365,583

Long-term debt, exclusive of current installments	$	774,325	$	365,583

The aggregate maturities of long-term debt, exclusive of current installments at January 30, 2010 are as follows:


In thousands	Long-Term Debt


Fiscal Year
2012	$	—
2013		—
2014		—
2015		—
Later years		775,000
Less amount representing unamortized debt discount		(675	)

Aggregate maturities of long-term debt, exclusive of current installments	$	774,325

In February 2001, TJX issued $517.5 million zero coupon convertible subordinated notes due in February 2021 and raised gross proceeds of $347.6 million. The issue price of the notes represented a yield to maturity of 2% per year. During fiscal 2010, TJX called for the redemption of these notes at the original issue price plus accrued original issue discount, and 462,057 of such notes with a carrying value of $365.1 million were converted into 15.1 million shares of TJX common stock at a rate of 32.667 shares per note. TJX paid $2.3 million to redeem the remaining 2,886 notes outstanding that were not converted. Prior to fiscal 2010, a total of 52,557 notes were either converted into common shares of TJX or put back to the Company.

On April 7, 2009, TJX issued $375 million aggregate principal amount of 6.95% ten-year notes and used the proceeds from the 6.95% notes offering to repurchase additional common stock under its stock repurchase program in fiscal 2010. Also in April 2009, prior to the issuance of the 6.95% notes, TJX entered into a rate-lock agreement to hedge the underlying treasury rate of those notes. The cost of this agreement is being amortized to interest expense over the term of the 6.95% notes and results in an effective fixed rate of 7.00% on those notes.

On July 23, 2009, TJX issued $400 million aggregate principal amount of 4.20% six-year notes. TJX used a portion of the proceeds from the sale of the notes to refinance its C$235 million term credit facility on August 10, 2009, prior to its scheduled maturity, and used the remainder, together with funds from operations, to repay its $200 million 7.45% notes due December 15, 2009, at maturity. Also in July 2009, prior to the issuance of the 4.20% notes, TJX entered into a rate-lock agreement to hedge the underlying treasury rate on $250 million of those notes. The cost of this agreement is being amortized to interest expense over the term of the 4.20% notes and results in an effective fixed rate of 4.19% on the notes.

TJX has a $500 million revolving credit facility maturing May 2010 and a $500 million revolving credit facility maturing May 2011. TJX pays six basis points annually on the committed amounts under each of the credit facilities. These agreements have no compensating balance requirements and have various covenants including a requirement of a specified ratio of debt to earnings. These agreements serve as back up to TJX’s commercial paper program. As of January 30, 2010, there were no outstanding amounts under these credit facilities. The maximum amount of our U.S. short-term borrowings outstanding was $165.0 million during fiscal 2010 and $222.0 million in fiscal 2009. The weighted average interest rate on our U.S. short-term borrowings was 1.01% in fiscal 2010. We did not borrow under these credit facilities during fiscal 2008.

As of January 30, 2010 and January 31, 2009, TJX’s foreign subsidiaries had uncommitted credit facilities. TJX Canada had two credit lines, a C$10 million facility for operating expenses and a C$10 million letter of credit facility. There were no borrowings under the Canadian credit line for operating expenses in fiscal 2010 or fiscal 2009. The maximum amount outstanding under our Canadian credit line for operating expenses was C$5.7 million in fiscal 2008. There were no amounts outstanding on the Canadian credit line for operating expenses at the end of fiscal 2010 or fiscal 2009. As of January 30, 2010, TJX Europe had a credit line of £20 million. The maximum amount outstanding under this U.K. line was £1.9 million in fiscal 2010, £6.1 million in fiscal 2009 and £16.4 million in fiscal 2008. There were no outstanding borrowings on this U.K. credit line at the end of fiscal 2010 or fiscal 2009.

Financial Instruments

12 Months Ended

Jan. 30, 2010

Financial Instruments [Abstract]

Financial Instruments


E.	Financial Instruments

TJX enters into financial instruments to manage its cost of borrowing and to manage its exposure to changes in fuel costs and foreign currency exchange rates. TJX recognizes all derivative instruments as either assets or liabilities in the statements of financial position and measures those instruments at fair value. Changes to the fair value of derivative contracts that do not qualify for hedge accounting are reported in earnings in the period of the change. For derivatives that qualify for hedge accounting, changes in the fair value of the derivatives are either recorded in shareholders’ equity as a component of other comprehensive income or are recognized currently in earnings, along with an offsetting adjustment against the basis of the item being hedged. Effective in the fourth quarter of fiscal 2009, TJX no longer entered into contracts to hedge its net investments in foreign subsidiaries and settled all existing contracts. As a result, there were no net investment contracts as of January 30, 2010 or January 31, 2009.

Interest Rate Contracts: During fiscal 2004, TJX entered into interest rate swaps on $100 million of the $200 million ten-year notes outstanding at that time, effectively converting the interest on that portion of the unsecured notes from fixed to a floating rate of interest indexed to the six-month LIBOR rate. The interest rate swaps settled in December 2009. Under these swaps, TJX paid a specific variable interest rate and received the fixed rate applicable to the underlying debt. The interest income/expense on the swaps was accrued as earned and recorded as an adjustment to the interest expense accrued on the fixed-rate debt. The interest rate swaps were designated as fair value hedges on the underlying debt. The fair value of the contracts, excluding the net interest accrual, amounted to an asset of $1.6 million as of January 31, 2009 and an asset of $1.2 million at January 26, 2008. The valuation of the swaps resulted in an offsetting fair value adjustment to the debt hedged. Accordingly, current installments of long-term debt was increased by $1.6 million in fiscal 2009 and by $1.2 million in fiscal 2008. The average effective interest rate on $100 million of the 7.45% unsecured notes, inclusive of the effect of hedging activity, was approximately 4.04% in fiscal 2010, 6.54% in fiscal 2009 and 8.77% in fiscal 2008.

Concurrent with the issuance of the C$235 million three-year note in fiscal 2006, TJX entered an interest rate swap on the principal amount of the note effectively converting the interest on the note from floating to a fixed rate. In January 2009 this interest rate swap settled, one year before the maturity date of the underlying debt, which was extended one year to January 2010 and subsequently repaid in the second quarter of fiscal 2010 before its scheduled maturity. Under this swap TJX paid a specified fixed interest rate and received the floating rate applicable to the underlying debt. The interest income/expense on the swap was accrued as earned and recorded as an adjustment to the interest expense accrued on the floating-rate debt. The interest rate swap was designated as a cash flow hedge of the underlying debt. The fair value of the interest rate swap, excluding the net interest accrual, amounted to an asset of $1.1 million (C$1.1 million) as of January 26, 2008. The valuation of the swap resulted in an adjustment to other comprehensive income of a similar amount. The average effective interest rate on the note, inclusive of the effect of hedging activity, was approximately 4.50% in both fiscal 2009 and 2008.

Diesel Fuel Contracts: During fiscal 2010, TJX entered into agreements to hedge a portion of its notional diesel requirements for fiscal 2011, based on the diesel fuel consumed by independent freight carriers transporting the Company’s inventory. These economic hedges relate to 10% of our notional diesel requirements in the second quarter of fiscal 2011 and 20% of our notional diesel requirements in the third and fourth quarters of fiscal 2011. These diesel fuel hedge agreements will settle during the last three quarters of fiscal 2011 and expire in February 2011. During fiscal 2009, TJX entered into agreements to hedge approximately 30% of its notional diesel fuel requirements for fiscal 2010, which settled throughout the year and terminated in February 2010. Independent freight carriers transporting the Company’s inventory charge TJX a mileage surcharge for diesel fuel price increases as incurred by the carrier. The hedge agreements are designed to mitigate the volatility of diesel fuel pricing (and the resulting per mile surcharges payable by TJX) by setting a fixed price per gallon for the year. TJX elected not to apply hedge accounting rules to these contracts. The change in the fair value of the hedge agreements resulted in a gain of $4.5 million in fiscal 2010 and a loss of $4.9 million in fiscal 2009 both of which are reflected in earnings as a component of cost of sales, including buying and occupancy costs.

Foreign Currency Contracts: TJX enters into forward foreign currency exchange contracts to obtain economic hedges on firm U.S. dollar and Euro denominated merchandise purchase commitments made by T.K. Maxx (United Kingdom, Ireland, Germany and Poland), Winners (Canada) and Marmaxx. These commitments are typically twelve months or less in duration. The contracts outstanding at January 30, 2010 cover certain commitments for the four quarters of fiscal 2011. TJX elected not to apply hedge accounting rules to these contracts in fiscal 2010, fiscal 2009 and fiscal 2008. The change in the fair value of these contracts resulted in income of $494,000 in fiscal 2010, a loss of $2.3 million in fiscal 2009 and income of $6.6 million in fiscal 2008 and is included in earnings as a component of cost of sales, including buying and occupancy costs.

Until the fourth quarter of fiscal 2009, TJX entered into foreign currency forward and swap contracts in both Canadian dollars and British pound sterling and accounted for them as hedges of the net investment in and between foreign subsidiaries or cash flow hedges of Winners long-term intercompany debt. TJX applied hedge accounting to these hedge contracts of our investment in foreign subsidiaries, and changes in fair value of these contracts, as well as gains and losses upon settlement, were recorded in accumulated other comprehensive income, offsetting changes in the cumulative foreign translation adjustments of the foreign subsidiaries. The change in fair value of the contracts designated as hedges of the investment in foreign subsidiaries resulted in a gain of $68.8 million, net of income taxes, in fiscal 2009, and a loss of $15.8 million, net of income taxes, in fiscal 2008. The ineffective portion of the net investment hedges resulted in pre-tax charges to the income statement of $2.2 million in fiscal 2009 and $9.1 million in fiscal 2008. The change in the cumulative foreign currency translation adjustment resulted in a loss of $76.7 million, net of income taxes, in fiscal 2010, a gain of $171.2 million, net of income taxes, in fiscal 2009, and a gain of $21.0 million, net of income taxes, in fiscal 2008. Amounts included in other comprehensive income relating to cash flow hedges were reclassified to earnings as the underlying exposure on the debt had an impact on earnings. The net amount reclassified from other comprehensive income to the income statement in fiscal 2009 related to cash flow hedges was $677,368, net of income taxes. The net loss recognized in fiscal 2008 related to cash flow hedges was $1.1 million, net of income taxes.

TJX also enters into derivative contracts, generally designated as fair value hedges, to hedge intercompany debt and intercompany interest payable. The changes in fair value of these contracts are recorded in selling, general and administrative expenses and are offset by marking the underlying item to fair value in the same period. Upon settlement, the realized gains and losses on these contracts are offset by the realized gains and losses of the underlying item in selling, general and administrative expenses. There were no such contracts outstanding as of January 30, 2010. The net impact on the income statement of hedging activity related to these intercompany payables was income of $3.7 million in fiscal 2010, expense of $1.7 million in fiscal 2009 and income of $2.6 million in fiscal 2008.

Following is a summary of TJX’s derivative financial instruments and related fair values outstanding at January 30, 2010:



															Net Fair
															Value in
					Blended		Balance								US$ at
					Contract		Sheet			Asset		(Liability)			January
In thousands	Pay		Receive		Rate		Location			US$		US$			30, 2010


Hedge accounting not elected:
Diesel contracts		Fixed on 260K - 520K gal per month		Float on 260K - 520K gal per month		N/A		(Accrued Exp	)	$	—	$	(442	)	$	(442	)
Merchandise purchase commitments
	C$	220,244	US$	210,476		0.9556		Prepaid Expense			4,719		—			4,719
	C$	2,264	€	1,450		0.6406		(Accrued Exp	)		—		(105	)		(105	)
	£	19,000	US$	31,307		1.6477		Prepaid Expense			923		—			923
	£	16,074	€	17,910		1.1142		(Accrued Exp	)		—		(882	)		(882	)
	US$	1,175	€	818		1.4370		(Accrued Exp	)		—		(42	)		(42	)

Total fair value of all financial instruments															$	4,171

Following is a summary of TJX’s derivative financial instruments and related fair values outstanding at January 31, 2009:



																	Net Fair
																	Value in
							Blended		Balance								US$ at
							Contract		Sheet			Asset		(Liability)			January
In thousands	Pay			Receive			Rate		Location			US$		US$			31, 2009


Fair value hedges:
Interest rate swap fixed to floating on notional of $50,000		LIBOR + 4.17	%		7.45	%		N/A		Int Rec/ Prepaid Exp		$	766	$	—		$	766
Interest rate swap fixed to floating on notional of $50,000		LIBOR + 3.42	%		7.45	%		N/A		Int Rec/ Prepaid Exp			1,093		—			1,093
Intercompany balance hedges primarily short-term debt and related interest	C$	37,795		US$	33,826			0.8950		Prepaid Expense/ (Accrued Exp	)		3,157		(106	)		3,051
	US$	114,990		C$	143,051			0.8038		Prepaid Expense/ (Accrued Exp	)		1,652		(352	)		1,300
	US$	39,997		€	30,936			1.2929		(Accrued Exp	)		—		(370	)		(370	)
Hedge accounting not elected:
Diesel contracts		Fixed on 750K gal per month			Float on 750K gal per month			N/A		(Accrued Exp	)		—		(4,931	)		(4,931	)
Merchandise purchase commitments	C$	206,109		US$	172,500			0.8369		Prepaid Expense/ (Accrued Exp	)		4,879		(42	)		4,837
	C$	4,828		€	2,950			0.6110		(Accrued Exp	)		—		(149	)		(149	)
	£	19,394		US$	28,000			1.4437		Prepaid Expense/ (Accrued Exp	)		160		(364	)		(204	)
	£	7,273		€	8,000			1.1000		(Accrued Exp	)		—		(343	)		(343	)
	US$	441		€	327			1.3486		Prepaid Expense/ (Accrued Exp	)		2		(25	)		(23	)

Total fair value of all financial instruments																	$	5,027

The fair values of the derivatives are classified as assets or liabilities, current or non-current, based upon valuation results and settlement dates of the individual contracts. Following are the balance sheet classifications of the fair value of TJX’s derivatives:



	January 30,			January 31,
In thousands	2010			2009


Current assets	$	5,642		$	11,772
Non-current assets		—			—
Current liabilities		(1,471	)		(6,745	)
Non-current liabilities		—			—

Net fair value	$	4,171		$	5,027

The impact of derivative financial instruments on statements of income during fiscal 2010 is as follows:



		Amount of Gain
	Location of Gain	(Loss) Recognized
	(Loss) Recognized in	in Income by
In thousands	Income by Derivative	Derivative


Derivatives designated as hedging instruments:
Fair value hedges
Interest rate swap fixed to floating on notional of $50,000	Interest expense, net	$	1,092
Interest rate swap fixed to floating on notional of $50,000	Interest expense, net		1,422
Intercompany balances, primarily short-term debt and related interest	Selling, general & administrative expenses		(9,249	)
Derivatives not designated as hedging instruments:
Diesel contracts	Cost of sales, including buying and occupancy costs		4,490
Merchandise purchase commitments	Cost of sales, including buying and occupancy costs		494

Gain (loss) recognized in income		$	(1,751	)

The counterparties to the forward exchange contracts and swap agreements are major international financial institutions, and the contracts contain rights of offset, which minimize TJX’s exposure to credit loss in the event of nonperformance by one of the counterparties. TJX is not required by counterparties, and TJX does not require that counterparties, maintain collateral for these contracts. TJX periodically monitors its position and the credit ratings of the counterparties and does not anticipate losses resulting from the nonperformance of these institutions.

Disclosures about Fair Value of Financial Instruments

12 Months Ended

Jan. 30, 2010

Disclosures about Fair Value of Financial Instruments [Abstract]

Disclosures about Fair Value of Financial Instruments


F.	Disclosures about Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). U.S. GAAP classifies the inputs used to measure fair value into the following hierarchy:


Level 1:		Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2:		Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability.
Level 3:		Unobservable inputs for the asset or liability.

TJX endeavors to utilize the best available information in measuring fair value and classifies financial assets and liabilities in their entirety based on the lowest level of input that is significant to the fair value measurement. TJX has determined that its financial assets and liabilities are generally classified within level 1 or level 2 in the fair value hierarchy. The following table sets forth TJX’s financial assets and liabilities that are accounted for at fair value on a recurring basis:



	January 30,		January 31,
In thousands	2010		2009


Level 1
Assets:
Executive savings plan	$	55,404	$	40,636
Level 2
Assets:
Short-term investments	$	130,636	$	—
Foreign currency exchange contracts		5,642		9,534
Interest rate swaps		—		1,859
Liabilities:
Foreign currency exchange contracts	$	1,029	$	1,435
Diesel fuel contracts		442		4,931

The fair value of TJX’s general corporate debt, including current installments, was estimated by obtaining market quotes given the trading levels of other bonds of the same general issuer type and market perceived credit quality. The fair value of the zero coupon convertible subordinated notes was estimated by obtaining market quotes. The fair value of long-term debt at January 30, 2010 was $862.3 million versus a carrying value of $774.3 million. The fair value of the current installments of long-term debt at January 31, 2009 was $399.9 million versus a carrying value of $392.9 million. The fair value of the subordinated notes as of January 31, 2009, was $358.3 million versus a carrying value of $365.6 million. These estimates do not necessarily reflect provisions or restrictions in the various debt agreements that might affect TJX’s ability to settle these obligations.

Our cash equivalents are stated at cost, which approximates fair value, due to the short maturities of these instruments.

Investments designed to meet obligations under our executive savings plan are invested in securities traded in active markets and carried at unadjusted quoted prices.

As a result of its international operating and financing activities, TJX is exposed to market risks from changes in interest and foreign currency exchange rates, which may adversely affect its operating results and financial position. When deemed appropriate, we minimize risk from interest and foreign currency exchange rate fluctuations through the use of derivative financial instruments. Derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes and TJX does not use leveraged derivative financial instruments. The forward foreign currency exchange contracts and interest rate swaps are valued using broker quotations which include observable market information. TJX makes no adjustments to quotes or prices obtained from brokers or pricing services but does assess the credit risk of counterparties and will adjust final valuations when appropriate. Where independent pricing services provide fair values, TJX obtains an understanding of the methods used in pricing. As such, these derivative instruments are classified within level 2.

Stock Incentive Plan

12 Months Ended

Jan. 30, 2010

Stock Incentive Plan [Abstract]

Stock Incentive Plan


H.	Stock Incentive Plan

TJX has a stock incentive plan under which options and other share based awards may be granted to its directors, officers and key employees. This plan has been approved by TJX’s shareholders, and all stock compensation awards are made under this plan. The Stock Incentive Plan, as amended with shareholder approval, provides for the issuance of up to 160.9 million shares with 22.7 million shares available for future grants as of January 30, 2010. TJX issues shares from authorized but unissued common stock.

Total compensation cost related to share-based compensation was $33.5 million net of income taxes of $21.6 million in fiscal 2010, $31.2 million net of income taxes of $20.1 million in fiscal 2009 and $37.0 million net of income taxes of $20.3 million in fiscal 2008.

As of January 30, 2010, there was $87.2 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plan. That cost is expected to be recognized over a weighted-average period of two years.

Options for the purchase of common stock have been granted at 100% of market price on the grant date and generally vest in thirds over a three-year period starting one year after the grant, and have a ten-year term.

The fair value of options is estimated as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:



	Fiscal Year
	2010			2009			2008


Risk-free interest rate		2.49	%		2.96	%		4.00	%
Dividend yield		1.3	%		1.3	%		1.2	%
Expected volatility factor		37.3	%		33.9	%		31.0	%
Expected option life in years		5.0			4.8			4.5
Weighted average fair value of options issued	$	12.27		$	10.46		$	8.38

Expected volatility is based on a combination of implied volatility from traded options on our stock, and historical volatility during a term approximating the expected term of the option granted. We use historical data to estimate option exercise, employee termination behavior and dividend yield within the valuation model. Employee groups and option characteristics are considered separately for valuation purposes when applicable. No such distinctions existed during the fiscal years presented. The expected option life represents an estimate of the period of time options are expected to remain outstanding based upon historical exercise trends. The risk-free rate is for periods within the contractual life of the option based on the U.S. Treasury yield curve in effect at the time of grant.

Stock Options: A summary of the status of TJX’s stock options and related Weighted Average Exercise Prices (“WAEP”) is presented below (shares in thousands):



	January 30, 2010					Fiscal Year Ended January 31, 2009					January 26, 2008
	Options			WAEP		Options			WAEP		Options			WAEP

						(53 weeks)

Outstanding at beginning of year		31,773		$	24.83		35,153		$	22.17		37,854		$	20.50
Granted		4,877			37.74		5,199			35.02		5,716			29.23
Exercised and repurchased		(8,012	)		21.30		(7,533	)		19.08		(7,473	)		18.84
Forfeitures		(663	)		31.79		(1,046	)		27.59		(944	)		24.25

Outstanding at end of year		27,975		$	27.92		31,773		$	24.83		35,153		$	22.17

Options exercisable at end of year		18,372		$	24.01		21,664		$	21.56		24,243		$	19.88

Included in the exercised and repurchased amount in the table above are approximately 77,000 options that were repurchased from optionees by TJX during fiscal 2009 and 341,000 options repurchased during fiscal 2008. There were no such option repurchases during fiscal 2010. Cash paid for such repurchased options amounted to $659,305 in fiscal 2009 and $2.3 million in fiscal 2008. The total intrinsic value of options exercised was $109.2 million in fiscal 2010, $108.1 million in fiscal 2009 and $79.7 million in fiscal 2008.

The following table summarizes information about stock options outstanding that were expected to vest and stock options outstanding that were exercisable at January 30, 2010. Options outstanding expected to vest represents total unvested options of 9.6 million adjusted for anticipated forfeitures.



					Weighted
					Average		Weighted
			Aggregate		Remaining		Average
			Intrinsic		Contract		Exercise
In thousands except years and per share amounts	Shares		Value		Life		Price


Options outstanding expected to vest		8,933	$	24,048		8.9 years	$	35.32
Options exercisable		18,372	$	282,172		5.3 years	$	24.01

Total outstanding options vested and expected to vest		27,305	$	306,220		6.5 years	$	27.71

Performance-Based Restricted Stock and Other Awards: TJX has issued performance-based restricted stock awards under the Stock Incentive Plan which are issued at no cost to the recipient of the award and have restrictions that generally lapse over one to four years from date of grant when and if specified performance criteria are met. The grant date fair value of the award is charged to income ratably over the period during which these awards vest. The fair value of the awards is determined at date of grant and assumes that performance goals will be achieved. If such goals are not met, no compensation cost is recognized and any recognized compensation cost is reversed.

A summary of the status of our nonvested performance-based restricted stock and changes during fiscal 2010 is presented below:



	Performance			Weighted
	Based			Average
	Restricted			Grant Date
Shares in thousands	Stock			Fair Value


Nonvested at beginning of year		442		$	28.38
Granted		470			25.91
Vested		(252	)		26.43
Forfeited		(19	)		29.53

Nonvested at end of year		641		$	27.30

There were 470,000 shares of performance-based restricted stock, with a weighted average grant date fair value of $25.91, granted in fiscal 2010; 173,000 shares with a weighted average grant date fair value of $33.49 were granted in fiscal 2009 and 200,000 shares with a weighted average grant date fair value of $28.04 were granted in fiscal 2008. The fair value of performance-based restricted stock that vested was $6.7 million in fiscal 2010, $5.9 million in fiscal 2009 and $3.9 million in fiscal 2008.

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 valued at $50,000. One award vests immediately and is payable, with accumulated dividends, in stock at the earlier of separation from service as a director or 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 at 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 2010, a total of 174,577 deferred shares were outstanding under the plan.

Capital Stock and Earnings Per Share

12 Months Ended

Jan. 30, 2010

Capital Stock and Earnings Per Share [Abstract]

Capital Stock and Earnings Per Share


I.	Capital Stock and Earnings Per Share

Capital Stock: In December 2009, we completed a $1 billion stock repurchase program which began in fiscal 2009 and initiated another multi-year $1 billion stock repurchase program approved in September 2009. We repurchased and retired 27.0 million shares of our common stock at a cost of $949.9 million during fiscal 2010. TJX reflects stock repurchases in its financial statements on a “settlement” basis. We had cash expenditures under our repurchase programs of $944.8 million in fiscal 2010, $751.1 million in fiscal 2009 and $940.2 million in fiscal 2008, funded primarily by cash generated from operations. We repurchased 26.9 million shares in fiscal 2010, 24.3 million shares in fiscal 2009 and 33.0 million shares in fiscal 2008. As of January 30, 2010, on a “trade date” basis, we had repurchased 5.5 million shares of our common stock at a cost of $205.0 million under the $1 billion stock repurchase program authorized in September 2009. All shares repurchased under our stock repurchase programs have been retired.

In February 2010, TJX’s Board of Directors approved a new stock repurchase program that authorizes the repurchase of up to an additional $1 billion of TJX common stock from time to time.

TJX has five million shares of authorized but unissued preferred stock, $1 par value.

Earnings Per Share: The following schedule presents the calculation of basic and diluted earnings per share for income from continuing operations:



Amounts in thousands	January 30,		January 31,		January 26,
except per share amounts	2010		2009		2008

	(53 weeks)

Basic earnings per share:
Income from continuing operations	$	1,213,572	$	914,886	$	782,432

Weighted average common stock outstanding for basic earnings per share calculation		417,796		419,076		443,050
Basic earnings per share	$	2.90	$	2.18	$	1.77
Diluted earnings per share:
Income from continuing operations	$	1,213,572	$	914,886	$	782,432
Add back: Interest expense on zero coupon convertible subordinated notes, net of income taxes		1,073		4,653		4,716

Income from continuing operations used for diluted earnings per share calculation	$	1,214,645	$	919,539	$	787,148

Weighted average common stock outstanding for basic earnings per share calculation		417,796		419,076		443,050
Assumed conversion/exercise of:
Convertible subordinated notes		3,901		16,434		16,905
Stock options and awards		5,922		6,745		8,091

Weighted average common stock outstanding for diluted earnings per share calculation		427,619		442,255		468,046

Diluted earnings per share	$	2.84	$	2.08	$	1.68

In April 2009, TJX called for the redemption of its zero coupon convertible subordinated notes. There were 462,057 of such notes with a carrying value of $365.1 million that were converted into 15.1 million shares of TJX common stock at a conversion rate of 32.667 shares per note. TJX paid $2.3 million to redeem the remaining 2,886 notes outstanding that were not converted.

The weighted average common shares for the diluted earnings per share calculation exclude the impact of outstanding stock options if the assumed proceeds per share of the option is in excess of the related fiscal year’s average price of TJX’s common stock. Such options are excluded because they would have an antidilutive effect. Excluded were 9.5 million options at January 30, 2010, 5.2 million at January 31, 2009 and 5.7 million at January 26, 2008.

Income Taxes

12 Months Ended

Jan. 30, 2010

Income Taxes [Abstract]

Income Taxes


K.	Income Taxes

The provision for income taxes includes the following:



	Fiscal Year Ended
	January 30,			January 31,		January 26,
In thousands	2010			2009		2008

	(53 weeks)

Current:
Federal	$	465,799		$	259,857	$	375,799
State		104,621			27,376		94,727
Foreign		114,195			97,976		87,260
Deferred:
Federal		54,544			126,816		(64,363	)
State		1,773			23,955		(15,698	)
Foreign		(2,942	)		74		(70	)

Provision for income taxes	$	737,990		$	536,054	$	477,655

Income from continuing operations before income taxes includes foreign pre-tax income of $342.3 million in fiscal 2010, $292.6 million in fiscal 2009 and $260.8 million in fiscal 2008.

TJX had net deferred tax (liabilities) assets as follows:



	Fiscal Year Ended
	January 30,			January 31,
In thousands	2010			2009


Deferred tax assets:
Foreign tax credit carryforward	$	89,796		$	37,611
Reserve for discontinued operations		11,813			14,859
Pension, stock compensation, postretirement and employee benefits		253,926			238,557
Leases		39,635			38,889
Foreign currency and hedging		3,743			4,571
Computer Intrusion reserve		8,722			16,749
Other		88,447			83,483

Total deferred tax assets	$	496,082		$	434,719

Deferred tax liabilities:
Property, plant and equipment	$	274,937		$	215,462
Capitalized inventory		44,079			44,102
Tradename		42,873			42,873
Undistributed foreign earnings		193,252			111,506
Other		10,926			12,109

Total deferred tax liabilities		566,067			426,052

Net deferred tax (liability) asset	$	(69,985	)	$	8,667

The fiscal 2010 net deferred tax liability is presented on the balance sheet as a current asset of $122.5 million and a non-current liability of $192.4 million. For fiscal 2009, the net deferred tax asset is presented on the balance sheet as a current asset of $135.7 million and a non-current liability of $127.0 million. TJX has provided for deferred U.S. taxes on all undistributed earnings from its Winners Canadian subsidiary, its Marshalls Puerto Rico subsidiary and its Italian subsidiary through January 30, 2010. All earnings of TJX’s other foreign subsidiaries are considered indefinitely reinvested and no U.S. deferred taxes have been provided on those earnings. The net deferred tax (liability) asset summarized above includes deferred taxes relating to temporary differences at our foreign operations and amounted to an $18.9 million net liability as of January 30, 2010 and a $19.9 million net liability as of January 31, 2009.

In fiscal 2009, TJX’s HomeGoods subsidiary utilized a Puerto Rico net operating loss carryforward of approximately $1.1 million which had not been previously recognized. There were no further Puerto Rico net operating losses as of the fiscal year ended January 31, 2009. TJX’s German subsidiary, which is treated as a branch for U.S. tax purposes, incurred net operating losses of $11.4 million in fiscal 2010, $15.0 million in fiscal 2009 and $14.4 million in fiscal 2008 for tax and financial reporting purposes. The losses were fully utilized in each year to reduce TJX’s current U.S. taxable income. Any future utilization of the losses in Germany will result in a corresponding amount of taxable income for U.S. tax purposes.

TJX established valuation allowances against certain deferred tax assets which may not be realized in future years. The amount of the valuation allowances was $3.9 million as of January 30, 2010 and $6.2 million as of January 31, 2009.

TJX’s worldwide effective income tax rate was 37.8% for fiscal 2010, 36.9% for fiscal 2009, and 37.9% for fiscal 2008. The difference between the U.S. federal statutory income tax rate and TJX’s worldwide effective income tax rate is reconciled below:



	Fiscal Year Ended
	January 30,			January 31,			January 26,
	2010			2009			2008

	(53 weeks)

U.S. federal statutory income tax rate		35.0	%		35.0	%		35.0	%
Effective state income tax rate		4.3			2.8			4.1
Impact of foreign operations		(0.6	)		(0.1	)		(0.6	)
Impact of repatriation of foreign earnings		—			—			(0.4	)
All other		(0.9	)		(0.8	)		(0.2	)

Worldwide effective income tax rate		37.8	%		36.9	%		37.9	%

The increase in TJX’s effective state income tax rate for fiscal 2010 as compared to fiscal 2009 is primarily attributed to the settlement, in fiscal 2009, of several state tax audits and the resulting reduction to our reserves for uncertain tax positions. In the first quarter of fiscal 2008, TJX adopted the provisions for recognizing and measuring tax positions taken or expected to be taken in a tax return that affect amounts reported in the financial statements. As a result of the implementation, TJX recognized a charge of approximately $27.2 million to its retained earnings balance at the beginning of fiscal 2008. TJX had net unrecognized tax benefits of $121.0 million as of January 30, 2010, $129.9 million as of January 31, 2009 and $140.7 million as of January 26, 2008.

A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows:



	January 30,			January 31,			January 26,
In thousands	2010			2009			2008


Balance at beginning of year or date of implementation	$	202,543		$	232,859		$	188,671
Additions for uncertain tax positions taken in current year		59,301			59,807			30,811
Additions for uncertain tax positions taken in prior years		1,444			1,848			52,328
Reductions for uncertain tax positions taken in prior years		(53,612	)		(80,959	)		(36,474	)
Reductions resulting from lapse of statute of limitations		(3,267	)		(2,002	)		(307	)
Settlements with tax authorities		(14,668	)		(9,010	)		(2,170	)

Balance at end of year	$	191,741		$	202,543		$	232,859

Included in the gross amount of unrecognized tax benefits are items that will not impact future effective tax rates upon recognition. These items amount to $57.6 million as of January 30, 2010, $49.3 million as of January 31, 2009 and $67.8 million as of January 26, 2008.

TJX is subject to U.S. federal income tax as well as income tax in multiple state, local and foreign jurisdictions. In nearly all jurisdictions, the tax years through fiscal 2001 are no longer subject to examination.

TJX’s accounting policy is to classify interest and penalties related to income tax matters as part of income tax expense. The amount of interest and penalties expensed was $7.6 million for the year ended January 30, 2010, $15.3 million for the year ended January 31, 2009 and $16.2 million for the year ended January 26, 2008. The accrued amounts for interest and penalties are $50.6 million as of January 30, 2010, $51.1 million as of January 31, 2009 and $52.5 million as of January 26, 2008.

Based on the final resolution of tax examinations, judicial or administrative proceedings, changes in facts or law, expirations of statute of limitations in specific jurisdictions or other resolutions of, or changes in, tax positions; it is reasonably possible that unrecognized tax benefits for certain tax positions taken on previously filed tax returns may change materially from those represented on the financial statements as of January 30, 2010. During the next twelve months, it is reasonably possible that such circumstances may occur that would have a material effect on previously unrecognized tax benefits. As a result, the total net amount of unrecognized tax benefits may decrease, which would reduce the provision for taxes on earnings by a range estimated at $1.0 million to $49.0 million.

Pension Plans and Other Retirement Benefits

12 Months Ended

Jan. 30, 2010

Pension Plans and Other Retirement Benefits [Abstract]

Pension Plans and Other Retirement Benefits


L.	Pension Plans and Other Retirement Benefits

Pension: TJX has a funded defined benefit retirement plan covering the majority of its full-time U.S. employees. As a result of an amendment to the plan, employees hired after February 1, 2006 do not participate in this plan but are eligible to receive enhanced employer contributions to their 401(k) plans. This plan amendment has not had a material impact on pension expense in the periods presented, but is expected to reduce net periodic pension costs gradually in subsequent years due to a reduction in the number of participants. Employees who had attained twenty-one years of age and completed one year of service prior to amendment were, and remain, covered under the plan. No employee contributions are required, and benefits are based on compensation earned in each year of service. Our 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 the securities of TJX. TJX also has an unfunded supplemental retirement plan which covers certain key employees and provides additional retirement benefits based on average compensation for certain of those employees.

Presented below is financial information relating to TJX’s funded defined benefit retirement plan (funded plan) and its unfunded supplemental pension plan (unfunded plan) for the fiscal years indicated:



	Funded Plan						Unfunded Plan
	Fiscal Year Ended						Fiscal Year Ended
	January 30,			January 31,			January 30,			January 31,
In thousands	2010			2009			2010			2009

	(53 weeks)						(53 weeks)

Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	492,413		$	447,684		$	55,463		$	51,588
Service cost		30,049			30,406			876			1,069
Interest cost		31,320			28,711			2,923			3,366
Actuarial losses (gains)		39,931			(1,411	)		7,686			2,252
Settlements		—			—			(12,156	)		—
Benefits paid		(11,403	)		(10,713	)		(3,065	)		(2,812	)
Expenses paid		(2,107	)		(2,264	)		—			—

Projected benefit obligation at end of year	$	580,203		$	492,413		$	51,727		$	55,463

Accumulated benefit obligation at end of year	$	532,276		$	451,260		$	41,855		$	42,560



	Funded Plan						Unfunded Plan
	Fiscal Year Ended						Fiscal Year Ended
	January 30,			January 31,			January 30,			January 31,
In thousands	2010			2009			2010			2009

	(53 weeks)						(53 weeks)

Change in plan assets:
Fair value of plan assets at beginning of year	$	314,212		$	436,416		$	—		$	—
Actual return on plan assets		75,018			(109,227	)		—			—
Employer contribution		132,700			—			15,221			2,812
Benefits paid		(11,403	)		(10,713	)		(3,065	)		(2,812	)
Settlements		—			—			(12,156	)		—
Expenses paid		(2,107	)		(2,264	)		—			—

Fair value of plan assets at end of year	$	508,420		$	314,212		$	—		$	—

Reconciliation of funded status:
Projected benefit obligation at end of year	$	580,203		$	492,413		$	51,727		$	55,463
Fair value of plan assets at end of year		508,420			314,212			—			—

Funded status—excess obligation	$	71,783		$	178,201		$	51,727		$	55,463


Net liability recognized on consolidated balance sheets	$	71,783		$	178,201		$	51,727		$	55,463

Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss):
Prior service cost	$	—		$	15		$	93		$	218
Accumulated actuarial losses		155,752			176,274			13,152			8,958

Amounts included in accumulated other comprehensive income (loss)	$	155,752		$	176,289		$	13,245		$	9,176

The consolidated balance sheets reflect the funded status of the plans with any unrecognized prior service cost and actuarial gains and losses recorded in accumulated other comprehensive income (loss). The combined net accrued liability of $123.5 million at January 30, 2010 is reflected on the balance sheet as of that date as a current liability of $3.8 million and a long-term liability of $119.7 million.

The combined net accrued liability of $233.7 million at January 31, 2009 is reflected on the balance sheet as of that date as a current liability of $13.1 million and a long-term liability of $220.6 million.

The estimated prior service cost that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in fiscal 2011 for the unfunded plan is $81,000. There is no estimated amortization for the funded plan. The estimated net actuarial loss that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in fiscal 2011 is $10.8 million for the funded plan and $2.3 million for the unfunded plan.

Weighted average assumptions for measurement purposes for determining the obligation at the year end measurement date:

Funded Plan

Unfunded Plan

Fiscal Year Ended

January 30,

January 31,

January 30,

January 31,

2010

2009

2010

2009

Discount rate

6.00%

6.50%

5.75%

6.50%

Expected return on plan assets

8.00%

8.00%

N/A

N/A

Rate of compensation increase

4.00%

4.00%

6.00%

6.00%

TJX selects the assumed discount rate using the Citigroup Pension Liability Index. TJX develops its long-term rate of return assumption by evaluating input from professional advisors taking into account the asset allocation of the portfolio and long-term asset class return expectations, as well as long-term inflation assumptions.

TJX made aggregate cash contributions of $147.9 million in fiscal 2010, $2.8 million in fiscal 2009 and $27.5 million in fiscal 2008 to the defined benefit retirement plan and to fund current benefit and expense payments under the unfunded supplemental retirement plan. The cash contributions made in fiscal 2009 were solely to fund current benefit and expense payments under the unfunded supplemental retirement plan. Through fiscal 2008, our funding policy for the funded plan was to fund any required contribution to the plan at the full funding limitation and generally to fund contributions in excess of any required contribution so as to fully fund the accumulated benefit obligation to the extent such contribution is allowed for tax purposes. As a result of voluntary funding contributions made in prior years, there was no required funding during fiscal 2009. In fiscal 2009, the Pension Protection Act (PPA) became effective and TJX’s policy became to fund, at a minimum, the amount required to maintain a funded status of 75% to 80% of the pension liability as defined by the PPA. As a result of funding in fiscal 2010, we do not anticipate any required funding in fiscal 2011 for the defined benefit retirement plan. We anticipate making contributions of $3.8 million to fund current benefit and expense payments under the unfunded supplemental retirement plan in fiscal 2011.

Following are the components of net periodic benefit cost and other amounts recognized in other comprehensive income related to our pension plans:



	Funded Plan									Unfunded Plan
	Fiscal Year Ended									Fiscal Year Ended
	January 30,			January 31,			January 26,			January 30,			January 31,			January 26,
Dollars in thousands	2010			2009			2008			2010			2009			2008

	(53 weeks)									(53 weeks)

Net periodic pension cost:
Service cost	$	30,049		$	30,406		$	34,704		$	876		$	1,069		$	992
Interest cost		31,320			28,711			24,632			2,923			3,366			2,867
Expected return on plan assets		(28,222	)		(34,369	)		(32,259	)		—			—			—
Settlement costs		—			—			—			2,447			—			168
Amortization of prior service costs		15			43			57			125			124			125
Amortization of net actuarial losses		13,656			—			—			1,045			1,270			789

Net periodic pension cost	$	46,818		$	24,791		$	27,134		$	7,416		$	5,829		$	4,941

Other Changes in Plan Assets and Benefit
Obligations Recognized in Other Comprehensive Income
Net (gain) loss	$	(6,866	)	$	142,186		$	(482	)	$	7,686		$	2,252		$	(3,420	)
Settlement costs		—			—			—			(2,447	)		—			—
Amortization of net (loss) gain		(13,656	)		—			—			(1,045	)		(1,270	)		(893	)
Amortization of prior service cost		(15	)		(44	)		(62	)		(125	)		(125	)		(135	)

Total recognized in other comprehensive
income	$	(20,537	)	$	142,142		$	(544	)	$	4,069		$	857		$	(4,448	)

Total recognized in net periodic benefit cost and other comprehensive income	$	26,281		$	166,933		$	26,590		$	11,485		$	6,686		$	493

Weighted average assumptions for expense purposes:
Discount rate		6.50%			6.50%			6.00%			6.50%			6.25%			5.75%
Expected rate of return on plan assets		8.00%			8.00%			8.00%			N/A			N/A			N/A
Rate of compensation increase		4.00%			4.00%			4.00%			6.00%			6.00%			6.00%

The unrecognized gains and losses in excess of 10% of the projected benefit obligation are amortized over the average remaining service life of participants. In addition, for the unfunded plan, unrecognized actuarial gains and losses that exceed 30% of the projected benefit obligation are fully recognized in net periodic pension cost.

Following is a schedule of the benefits expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter:



	Funded Plan		Unfunded Plan
In thousands	Expected Benefit Payments		Expected Benefit Payments


Fiscal Year
2011	$	15,662	$	3,753
2012		17,493		3,682
2013		19,917		3,204
2014		22,527		3,367
2015		25,330		3,259
2016 through 2020		176,433		21,605

The following table presents the fair value hierarchy (See Note F) for pension and postretirement assets measured at fair value on a recurring basis as of January 30, 2010:



	Funded Plan
Dollars in thousands	Level 1		Level 2		Level 3		Total


Asset category


Short-term investments	$	85,511	$	—	$	—	$	85,511
Equity Securities:
Domestic equity		43,950		—		—		43,950
International equity		33,784		—		—		33,784
Emerging markets		—		—		—		—
Fixed Income Securities:
Corporate and government bond funds		—		21,787		—		21,787
Common/Collective Trusts		—		295,792		19,817		315,609
Limited Partnerships		—		—		7,779		7,779

Fair value of plan assets	$	163,245	$	317,579	$	27,596	$	508,420

The following table presents a reconciliation of level 3 plan assets measured at fair value for the year ended January 30, 2010:



Dollars in thousands	Common/Collective Trusts			Limited Partnerships


Beginning balance as of February 1, 2009	$	35,200		$	14,264
Earned income, net of management expenses		(261	)		(570	)
Unrealized gain (loss) on investment		(294	)		(6,615	)
Purchases, sales, issuances and settlements, net		(14,828	)		700

Ending balance as of January 30, 2010	$	19,817		$	7,779

Pension plan assets are reported at fair value. Investments in equity securities traded on a national securities exchange are valued at the composite close price, as reported in the Wall Street Journal, as of the financial statement date. This information is provided by the independent pricing services IDC and Merrill Lynch.

Certain corporate and government bonds are valued at the closing price reported in the active market in which the bond is traded. Other bonds are valued based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds, the bond is valued under a discounted cash flows approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. All bonds are priced by IDC except for mortgage-backed pools which are priced by Merrill Lynch Pricing Service.

The investments in the limited partnerships are stated at the fair value of the Plan’s partnership interest based on information supplied by the partnerships as compared to financial statements of the limited partnership or other fair value information as determined by management. Cash equivalents are stated at cost which approximates fair value. The market value of the investments in the common/collective trusts are determined based on net asset value as reported by their fund managers.

The following is a summary of our target allocation for plan assets along with the actual allocation of plan assets as of the valuation date for the fiscal years presented:

Actual Allocation for

Fiscal Year Ended

January 30,

January 31,

Target Allocation

2010

2009

Equity securities

50%

47%

48%

Fixed income

50%

37%

50%

All other—primarily cash

—

16%

We employ a total return investment approach whereby a mix of equities and fixed income investments is used to seek to maximize the long-term return on plan assets with a prudent level of risk. Risks are sought to be mitigated through asset diversification and the use of multiple investment managers. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements and periodic asset/liability studies.

TJX also sponsors an employee savings plan under Section 401(k) of the Internal Revenue Code for all eligible U.S. employees. Assets under the plan totaled $676.4 million as of December 31, 2009 and $529.5 million as of December 31, 2008 and are invested in a variety of funds. Employees may contribute up to 50% of eligible pay, subject to limitation. TJX matches employee contributions, up to 5% of eligible pay, at rates ranging from 25% to 50%, based upon TJX’s performance. Employees hired after February 1, 2006 are eligible for participation in the 401(k) plan with an enhanced matching formula beginning five years after hire date. TJX contributed $13.3 million in fiscal 2010, $8.6 million in fiscal 2009 and $10.2 million in fiscal 2008 to the 401(k) plan. Employees cannot invest their contributions in the TJX stock fund option in the 401(k) plan, and may elect to invest up to only 50% of TJX’s contribution in the TJX stock fund. The TJX stock fund has no other trading restrictions. The TJX stock fund represents 4.5% of plan investments at December 31, 2009, 3.3% at December 31, 2008 and 3.5% at December 31, 2007.

TJX also has a nonqualified savings plan for certain U.S. employees. TJX matches employee contributions at various rates which amounted to $1.9 million in fiscal 2010, $425,432 in fiscal 2009 and $1.2 million in fiscal 2008. TJX transfers employee withholdings and the related company match to a separate trust designated to fund the future obligations. The trust assets, which are invested in a variety of mutual funds, are included in other assets on the balance sheets.

In addition to the plans described above, we also maintain retirement/deferred savings plans for all eligible associates at our foreign subsidiaries. We contributed $4.6 million for these plans in fiscal 2010, $4.2 million in fiscal 2009 and $4.1 million in fiscal 2008.

Postretirement Medical: TJX has an unfunded postretirement medical plan that provides limited postretirement medical and life insurance benefits to retirees who participate in its retirement plan and who retired at age 55 or older with ten or more years of service. During the fourth quarter of fiscal 2006, TJX eliminated this benefit for all active associates and modified the benefit to cover only retirees enrolled in the plan at that time. The plan amendment replaces the previous medical benefits with a defined amount (up to $35.00 per month) that approximates the cost of enrollment in the Medicare Plan for retirees enrolled in the plan at the time of modification.

TJX paid $253,000 of benefits in fiscal 2010 and will pay similar amounts over the next several years. The post retirement medical liability as of January 30, 2010 is estimated at $1.6 million, of which $1.4 million is included in non-current liabilities on the balance sheet.

The amendment to plan benefits in fiscal 2006 resulted in a negative plan amendment of $46.8 million which is being amortized into income over the average remaining life of the active plan participants. The unamortized balance of $26.8 million as of January 30, 2010 is included in accumulated other comprehensive income (loss) of which $3.8 million will be amortized into income in fiscal 2011. During fiscal 2010, there was a pre-tax net benefit of $3.4 million reflected in the income statement as it relates to this post retirement medical plan.

Discontinued Operations Reserve and Related Contingent Liabilities

12 Months Ended

Jan. 30, 2010

Discontinued Operations Reserve and Related Contingent Liabilities [Abstract]

Discontinued Operations Reserve and Related Contingent Liabilities


N.	Discontinued Operations Reserve and Related Contingent Liabilities

TJX has a reserve for future obligations of discontinued operations that relates primarily to real estate leases associated with 34 discontinued A.J. Wright stores as well as leases of former TJX businesses. The balance in the reserve and the activity for the last three fiscal years is presented below:



	Fiscal Year Ended
	January 30,			January 31,			January 26,
In thousands	2010			2009			2008


Balance at beginning of year	$	40,564		$	46,076		$	57,677
Additions (reductions) to the reserve charged to net income:
A.J. Wright store closings		8			(2,908	)		—
Other lease related obligations		(8	)		2,908			—
Interest accretion		1,761			1,820			1,820
Charges against the reserve:
Lease related obligations		(5,891	)		(7,323	)		(11,214	)
Termination benefits and all other		(537	)		(9	)		(2,207	)

Balance at end of year	$	35,897		$	40,564		$	46,076

The charges against the reserve in fiscal 2010, fiscal 2009 and fiscal 2008 related primarily to the closed A.J. Wright stores. In fiscal 2009, we reserved an additional $2.9 million for exposure to certain properties related to the sale of Bob’s Stores, which was offset by a comparable amount due to favorable settlements on several A.J. Wright locations. The majority of the reserve relates to lease obligations with respect to the closure of the A.J. Wright stores and the sale of Bob’s Stores. The remainder of the reserve reflects our estimation of the cost of claims, updated quarterly, that have been, or we believe are likely to be, made against us for liability as an original lessee or guarantor of the leases of former businesses, after mitigation of the number and cost of these lease obligations. The actual net cost of the various lease obligations included in the reserve may differ from our initial estimate. Although our actual costs with respect to the lease obligations may exceed amounts estimated in our reserve, and we may incur costs for other leases from former discontinued operations, we do not expect to incur any material costs related to these discontinued operations in excess of the amounts estimated. We estimate that the majority of the discontinued operations reserve will be paid in the next three to five years. The actual timing of cash outflows will vary depending on how the remaining lease obligations are actually settled.

TJX may also be contingently liable on up to 15 leases of BJ’s Wholesale Club, and on 7 additional Bob’s Stores leases both former TJX businesses. Our reserve for discontinued operations does not reflect these leases, because we currently believe that the likelihood of any future liability to TJX is not probable.

Segment Information

12 Months Ended

Jan. 30, 2010

Segment Information [Abstract]

Segment Information


Q.	Segment Information

TJX operates five business segments, three in the United States and one each in Canada and Europe. Each of our segments has its own administrative, buying and merchandising organization and distribution network. Of our U.S. based store chains, T.J. Maxx and Marshalls, referred to as Marmaxx, are managed together and reported as a single segment and A.J. Wright and HomeGoods each is reported as a separate segment. Outside the U.S., our store chains in Canada (Winners and HomeSense) are under common management and reported as the TJX Canada segment, and our store chains in Europe (T.K. Maxx and HomeSense) are also under common management and reported as the TJX Europe segment.

For fiscal 2010, TJX Canada and TJX Europe accounted for 22% of TJX’s net sales, 19% of segment profit and 22% of consolidated assets. All of our stores, with the exception of HomeGoods and HomeSense, sell family apparel and home fashions. The HomeGoods and HomeSense stores offer exclusively home fashions. By merchandise category, we derived approximately 61% of our sales from clothing (including footwear), 26% from home fashions and 13% from jewelry and accessories in fiscal 2010.

TJX evaluates the performance of its segments based on “segment profit or loss,” which it defines as pre-tax income before general corporate expense, Provision for Computer Intrusion related costs and interest. “Segment profit or loss,” as defined by TJX, may not be comparable to similarly titled measures used by other entities. In addition, this measure of performance should not be considered an alternative to net income or cash flows from operating activities as an indicator of our performance or as a measure of liquidity.

Presented below is selected financial information related to our business segments:



	Fiscal Year Ended
	January 30,		January 31,			January 26,
In thousands	2010		2009			2008

	(53 weeks)

Net sales:⁽¹⁾
In the United States
Marmaxx	$	13,270,863	$	12,362,122		$	11,966,651
HomeGoods		1,794,409		1,578,286			1,480,382
A.J. Wright		779,811		677,597			632,661
TJX Canada		2,167,912		2,139,443			2,040,814
TJX Europe		2,275,449		2,242,057			2,216,218

	$	20,288,444	$	18,999,505		$	18,336,726

Segment profit (loss):⁽¹⁾
In the United States
Marmaxx	$	1,588,452	$	1,155,838		$	1,158,179
HomeGoods		137,525		42,370			76,224
A.J. Wright		12,565		2,862			(1,801	)
TJX Canada		254,974		236,086			235,128
TJX Europe		163,969		137,612			127,218

		2,157,485		1,574,768			1,594,948
General corporate expense		166,414		140,037			139,437
Provision for Computer Intrusion related costs⁽²⁾		—		(30,500	)		197,022
Interest expense (income), net		39,509		14,291			(1,598	)

Income from continuing operations before provision for income taxes	$	1,951,562	$	1,450,940		$	1,260,087

Identifiable assets:
In the United States
Marmaxx	$	3,340,745	$	3,538,663		$	3,407,240
HomeGoods		415,230		455,045			435,605
A.J. Wright		269,190		242,657			204,808
TJX Canada		762,338		609,363			659,004
TJX Europe		861,122		675,283			847,107
Discontinued operations⁽¹⁾		—		—			87,291
Corporate⁽³⁾		1,815,352		657,231			958,879

	$	7,463,977	$	6,178,242		$	6,599,934

Capital expenditures:
In the United States
Marmaxx	$	214,308	$	328,965		$	287,558
HomeGoods		25,769		47,519			50,062
A.J. Wright		34,285		19,098			15,425
TJX Canada		38,960		61,486			40,928
TJX Europe		115,960		122,902			127,646
Discontinued operations⁽¹⁾		—		2,962			5,368

	$	429,282	$	582,932		$	526,987

Depreciation and amortization:
In the United States
Marmaxx	$	262,901	$	241,940		$	215,439
HomeGoods		32,876		28,892			24,261
A.J. Wright		19,542		16,298			15,296
TJX Canada		49,105		43,527			42,418
TJX Europe		67,783		59,949			56,163
Discontinued operations⁽¹⁾		—		2,610			7,361
Corporate⁽⁴⁾		3,011		8,491			8,458

	$	435,218	$	401,707		$	369,396


(1)		Fiscal 2009 and 2008 adjusted to reclassify the results of operations from Bob’s Stores through the date of sale to discontinued operations.
(2)		TJX has incurred losses as a result of the Computer Intrusion. In the second quarter of fiscal 2008, TJX established a pre-tax reserve of $178.1 million to reflect its estimation of probable losses. TJX reduced the reserve by $30.5 million in fiscal 2009 and $18.9 million in fiscal 2008.
(3)		Corporate identifiable assets consist primarily of cash, receivables, prepaid insurance, a note receivable, and reflects the increase in cash from fiscal 2009 to fiscal 2010 and the decrease in cash from fiscal 2008 to fiscal 2009.
(4)		Includes debt discount and debt expense amortization.

Consolidated Balance Sheets (Parenthetical) - USD ($)	Jan. 30, 2010	Jan. 31, 2009
ASSETS
Property under capital lease, accumulated amortization	$ 19,357,000	$ 17,124,000
SHAREHOLDERS' EQUITY
Common stock, shares authorized	1,200,000,000	1,200,000,000
Common stock, par value	$ 1	$ 1
Common stock, shares issued	409,386,126	412,821,592
Common stock, shares outstanding	409,386,126	412,821,592