15 unchanged sentences
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
−Removed: Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of February 1, 2020 based on criteria established in Internal Control—Integrated Framework 2013 issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
−Removed: Based on that evaluation, management concluded that its internal control over financial reporting was effective as of February 1, 2020.
−Removed: PricewaterhouseCoopers LLP, an independent registered public accounting firm, who audited and reported on the consolidated financial statements of The TJX Companies, Inc., has audited management’s assessment of our internal control over financial reporting as of February 1, 2020, as stated in their report which is included herein.
−Removed: (d) Attestation Report of the Independent Registered Public Accounting Firm
−Removed: Management’s assessment of the effectiveness of the Company’s internal control over financial reporting as of February 1, 2020 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears herein.
+Added: Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of January 30, 2021 based on criteria established in Internal Control—Integrated Framework 2013 issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
+Added: Based on that evaluation, management concluded that its internal control over financial reporting was effective as of January 30, 2021.
+Added: PricewaterhouseCoopers LLP, the independent registered public accounting firm that audited and reported on the consolidated financial statements contained herein, has audited the effectiveness of our internal control over financial reporting as of January 30, 2021, and has issued an attestation report on the effectiveness of our internal controls over financial reporting included herein.
Other Information
2 unchanged sentences
The information concerning our executive officers is set forth under the heading “Information about our Executive Officers” in Part I of this report.
−Removed: TJX will file with the Securities and Exchange Commission (SEC) a definitive proxy statement no later than 120 days after the close of its fiscal year ended February 1, 2020 ("Proxy Statement").
−Removed: The other information required by this Item and not given in this Item will appear under the headings “Election of Directors” and “Corporate Governance,” including in “Board Committees and Meetings,” and “Audit Committee Report” and, if applicable, “Beneficial Ownership” and “Delinquent Section 16(a) Reports” in our Proxy Statement, which sections are incorporated herein by reference.
+Added: TJX will file with the Securities and Exchange Commission (SEC) a definitive proxy statement no later than 120 days after the close of its fiscal year ended January 30, 2021 ("Proxy Statement").
+Added: The other information required by this Item and not given in this Item will appear under the headings “Election of Directors” and “Corporate Governance,” including in “Board Leadership and Committees,” and “Audit Committee Report” and, if applicable, “Beneficial Ownership” and “Delinquent Section 16(a) Reports” in our Proxy Statement, which sections are incorporated herein by reference.
In addition to our Global Code of Conduct, TJX has a Code of Ethics for TJX Executives governing its Executive Chairman, Chief Executive Officer and President, Chief Financial Officer, Principal Accounting Officer and other senior operating, financial and legal executives.
17 unchanged sentences
Sales Return Reserve:
−Removed: Fiscal Year Ended February 1, 2020 (a)
+Added: Fiscal Year Ended January 30, 2021
$ 109 $ 3,530 $ 3,471 $ 168
−Removed: Fiscal Year Ended February 2, 2019 (a)
+Added: Fiscal Year Ended February 1, 2020
$ 104 $ 4,862 $ 4,857 $ 109
1 unchanged sentence
$ 103 $ 4,862 $ 4,861 $ 104
−Removed: (a) Upon adoption of Revenue Recognition (Topic 606), the sales return reserve balance in fiscal 2020 and fiscal 2019 reflects the gross sales amount whereas fiscal 2018 reflects the sales net of estimated value of merchandise to be returned.
Listed below are all exhibits filed as part of this report.
21 unchanged sentences
8-K 4.2 9/12/2016
−Removed: 4.06 Description of Registrant's Securities, filed herewith
+Added: 4.06 Indenture dated as of April 1, 2020 between The TJX Companies, Inc.
+Added: Bank National Association, as Trustee
+Added: 8-K 4.1 4/1/2020
+Added: 4.07 First Supplemental Indenture, dated as of April 1, 2020 by and between TJX and U.S.
+Added: Bank National Association, as Trustee, including the form of Global Note attached as Annex A thereto.
+Added: 8-K 4.2 4/1/2020
+Added: 4.08 Second Supplemental Indenture, dated as of April 1, 2020 by and between TJX and U.S.
+Added: Bank National Association, as Trustee, including the form of Global Note attached as Annex A thereto.
+Added: 8-K 4.3 4/1/2020
+Added: 4.09 Third Supplemental Indenture, dated as of April 1, 2020 by and between TJX and U.S.
+Added: Bank National Association, as Trustee, including the form of Global Note attached as Annex A thereto.
+Added: 8-K 4.4 4/1/2020
+Added: 4.10 Fourth Supplemental Indenture, dated as of April 1, 2020 by and between TJX and U.S.
+Added: Bank National Association, as Trustee, including the form of Global Note attached as Annex A thereto.
+Added: 8-K 4.5 4/1/2020
+Added: 4.11 Fifth Supplemental Indenture, dated as of November 30, 2020 by and between TJX and U.S.
+Added: Bank National Association, as Trustee, including the form of Global Note attached as Annex A thereto.
+Added: 8-K 4.1 12/3/2020
+Added: 4.12 Sixth Supplemental Indenture, dated as of November 30, 2020 by and TJX and U.S.
+Added: Bank National Association, as Trustee, including the form of Global Note attached as Annex A thereto.
+Added: 8-K 4.2 12/3/2020
+Added: 4.13 Description of Registrant's Securities .
+Added: 10-K 4.06 3/27/2020
10.01 The Executive Severance Plan effective September 27, 2018*
14 unchanged sentences
10-K 10.10 4/3/2019
+Added: 10.09 The Amendment to the Employment Agreement between Richard Sherr and TJX effective as of January 29, 2021, filed herewith*
10.10 The Employment Agreement dated February 2, 2018 between Scott Goldenberg and TJX*
2 unchanged sentences
10-Q 10.5 12/4/2018
+Added: Incorporate by Reference
+Added: Description Form Exhibit No.
10.12 The Amendment to the Employment Agreement between Scott Goldenberg and TJX effective as of February 13, 2019*
10-K 10.13 4/3/2019
+Added: 10.13 The Amendment to the Employment Agreement between Scott Goldenberg and TJX effective as of January 29, 2021, filed herewith*
10.14 The Employment Agreement dated February 2, 2018 between Kenneth Canestrari and TJX*
4 unchanged sentences
10-K 10.16 4/3/2019
+Added: 10.17 The Amendment to the Employment Agreement between Kenneth Canestrari and TJX effective as of January 29, 2021, filed herewith*
10.18 The Employment Agreement dated January 16, 2018 between Douglas Mizzi and TJX*
4 unchanged sentences
10-K 10.19 4/3/2019
+Added: 10.21 The Amendment to the Employment Agreement between Douglas Mizzi and TJX effective as of January 29, 2021, filed herewith*
10.22 The Stock Incentive Plan (2013 Restatement)*
4 unchanged sentences
10-K 10.8 3/28/2017
−Removed: Incorporate by Reference
−Removed: Description Form Exhibit No.
10.25 The Third Amendment to the Stock Incentive Plan (2013 Restatement) effective as of November 6, 2018*
23 unchanged sentences
10-Q 10.2 12/1/2015
−Removed: 10.33 The Form of Performance-Based Deferred Stock Award granted under the Stock Incentive Plan as of March 29, 2016*
−Removed: 10-Q 10.1 5/27/2016
−Removed: 10.34 The Form of Performance-Based Deferred Stock award granted under the Stock Incentive Plan as of April 4, 2017*
−Removed: 10-Q 10.1 5/26/2017
−Removed: 10.35 The Performance-Based Restricted Stock Award granted under the Stock Incentive Plan on January 29, 2016 to Carol Meyrowitz*
−Removed: 10-K 10.18 3/29/2016
10.37 The Restricted Stock Unit Award granted under the Stock Incentive Plan on January 29, 2016 to Ernie Herrman*
8 unchanged sentences
10-Q 10.02 5/31/2019
+Added: Incorporate by Reference
+Added: Description Form Exhibit No.
10.42 The Form of Deferred Stock Award for Directors granted under the Stock Incentive Plan*
19 unchanged sentences
10.52 The Form of TJX Indemnification Agreement for its executive officers and directors*(p) 10-K 10(r) 4/27/1990
−Removed: Incorporate by Reference
−Removed: Description Form Exhibit No.
10.53 The Trust Agreement dated as of April 8, 1988 between TJX and State Street Bank and Trust Company*(p) 10-K 10(y) 4/28/1988
3 unchanged sentences
10.56 First Amendment to 2022 Revolving Credit Agreement, dated as of May 10, 2019, by and among TJX, U.S.
−Removed: Bank National Association, as administrative agent, and each of the lenders party thereto, filed herewith
+Added: Bank National Association, as administrative agent, and each of the lenders party thereto
+Added: 10-K 10.55 3/27/2020
+Added: 10.57 Second Amendment to 2022 Revolving Credit Agreement, dated as of May 15, 2020, by and among The TJX Companies, Inc., the lenders party thereto and U.S.
+Added: Bank National Association, as administrative agent.
+Added: 8-K 10.1 5/21/2020
+Added: 10.58 Third Amendment to 2022 Revolving Credit Agreement, dated as of November 24, 2020, by and among The TJX Companies, Inc., the lenders party thereto and U.S.
+Added: Bank National Association, as administrative agent, filed herewith
10.59 First Amendment to 2024 Revolving Credit Agreement, dated as of May 10, 2019, by and among TJX, U.S.
−Removed: Bank National Association, as administrative agent, and each of the lenders party thereto, filed herewith
+Added: Bank National Association, as administrative agent, and each of the lenders party thereto
+Added: 10-K 10.56 3/27/2020
+Added: 10.60 Second Amendment to 2024 Revolving Credit Agreement, dated as of May 15, 2020, by and among TJX, the lender party thereto and U.S.
+Added: Bank National Association, as administrative agent
+Added: 8-K 10.2 5/21/2020
+Added: 10.61 Third Amendment to 2024 Revolving Credit Agreement, dated as of November 24, 2020, by and among TJX, the lender party thereto and U.S.
+Added: Bank National Association, as administrative agent, filed herewith
+Added: 10.62 364 Day Revolving Credit Agreement, dated August 10, 2020, by and among The TJX Companies, Inc., the lenders from time to time party thereto, Bank of America, N.A., as syndication agent, U.S.
+Added: Bank National Association, JPMorgan Chase Bank, N.A.
+Added: and Wells Fargo Bank, National Association, as co-documentation agents, and BofA Securities, Inc., U.S.
+Added: Bank National Association, Deutsche Bank Securities Inc., HSBC Bank USA, National Association, JPMorgan Chase Bank, N.A.
+Added: and Wells Fargo Bank, National Association, as lead arrangers and bookrunners.
+Added: 8-K 10.1 8/11/2020
+Added: 10.63 First Amendment to 364 Day Revolving Credit Agreement, dated November 24, 2020, by and among The TJX Companies, Inc., the lenders from time to time party thereto, Bank of America, N.A., as syndication agent, U.S.
+Added: Bank National Association, JPMorgan Chase Bank, N.A.
+Added: and Wells Fargo Bank, National Association, as co-documentation agents, and BofA Securities, Inc., U.S.
+Added: Bank National Association, Deutsche Bank Securities Inc., HSBC Bank USA, National Association, JPMorgan Chase Bank, N.A.
+Added: and Wells Fargo Bank, National Association, as lead arrangers and bookrunners, filed herewith
21 Subsidiaries of TJX, filed herewith
2 unchanged sentences
31.1 Certification Statement of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith
+Added: Incorporate by Reference
+Added: Description Form Exhibit No.
31.2 Certification Statement of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith
1 unchanged sentence
32.2 Certification Statement of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith
−Removed: 101 The following materials from The TJX Companies, Inc.’s Annual Report on Form 10-K for the fiscal year ended February 1, 2020, formatted in Inline Extensible Business Reporting Language (iXBRL):
+Added: 101 The following materials from The TJX Companies, Inc.’s Annual Report on Form 10-K for the fiscal year ended January 30, 2021, formatted in Inline Extensible Business Reporting Language (iXBRL):
(i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Shareholders’ Equity, and (vi) Notes to Consolidated Financial Statements
−Removed: 104 The cover page from The TJX Companies, Inc.'s Annual Report on Form 10-K for the fiscal year ended February 1, 2020, formatted in iXBRL (included in Exhibit 101)
+Added: 104 The cover page from The TJX Companies, Inc.'s Annual Report on Form 10-K for the fiscal year ended January 30, 2021, formatted in iXBRL (included in Exhibit 101)
* Management contract or compensatory plan or arrangement.
11 unchanged sentences
(Principal Financial and Accounting Officer)
−Removed: ZEIN ABDALLA* AMY B.
−Removed: Zein Abdalla, Director Amy B.
+Added: ZEIN ABDALLA* MICHAEL F.
+Added: Zein Abdalla, Director Michael F.
+Added: Hines, Director
+Added: ALVAREZ* AMY B.
+Added: Alvarez, Director Amy B.
Lane, Director
7 unchanged sentences
O’Brien, Director
−Removed: HINES* WILLOW B.
−Removed: Hines, Director Willow B.
+Added: KIM GOODWIN* WILLOW B.
+Added: Kim Goodwin, Director Willow B.
Shire, Director
4 unchanged sentences
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: For Fiscal Years Ended February 1, 2020, February 2, 2019 and February 3, 2018.
+Added: For Fiscal Years Ended January 30, 2021, February 1, 2020 and February 2, 2019.
Report of Independent Registered Public Accounting Firm
12 unchanged sentences
We have audited the accompanying consolidated balance sheets of The TJX Companies, Inc.
−Removed: and its subsidiaries (the “Company”) as of February 1, 2020 and February 2, 2019, and the related consolidated statements of income, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended February 1, 2020, including the related notes and schedule of valuation and qualifying accounts for each of the three years in the period ended February 1, 2020 appearing under Item 15 (a) (collectively referred to as the “consolidated financial statements”).
−Removed: We also have audited the Company’s internal control over financial reporting as of February 1, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
−Removed: In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of February 1, 2020 and February 2, 2019, and the results of its operations and its cash flows for each of the three years in the period ended February 1, 2020 in conformity with accounting principles generally accepted in the United States of America.
−Removed: Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of February 1, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
+Added: and its subsidiaries (the “Company”) as of January 30, 2021 and February 1, 2020, and the related consolidated statements of income, of comprehensive income, of shareholders' equity and of cash flows for each of the three years in the period ended January 30, 2021, including the related notes and schedule of valuation and qualifying accounts for each of the three years in the period ended January 30, 2021 appearing under Item 15(a) (collectively referred to as the “consolidated financial statements”).
+Added: We also have audited the Company's internal control over financial reporting as of January 30, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
+Added: In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of January 30, 2021 and February 1, 2020, and the results of its operations and its cash flows for each of the three years in the period ended January 30, 2021 in conformity with accounting principles generally accepted in the United States of America.
+Added: Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of January 30, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
Change in Accounting Principle
−Removed: As discussed in Note A to the consolidated financial statements, the Company changed the manner in which it accounts for leases on February 3, 2019.
−Removed: This matter is also described in the “Critical Audit Matters” section of our report.
+Added: As discussed in Note A to the consolidated financial statements, the Company changed the manner in which it accounts for leases as of February 3, 2019.
Basis for Opinions
11 unchanged sentences
We believe that our audits provide a reasonable basis for our opinions.
−Removed: Emphasis of Matter
−Removed: As discussed in Note Q Subsequent Event, effective March 19, 2020, the Company closed all of its stores for at least two weeks and has temporarily closed its online businesses, its distribution centers and its offices in response to COVID-19.
−Removed: At this point, the Company cannot reasonably estimate the duration and severity of this pandemic, which could have a material adverse impact on the Company’s business, results of operations, financial position and cash flows in the year ending January 30, 2021.
−Removed: Management’s evaluation of the events and conditions and management’s plans to mitigate these matters are also described in Note Q.
Definition and Limitations of Internal Control over Financial Reporting
8 unchanged sentences
The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
−Removed: Adoption of the Leases Accounting Standard
−Removed: As described above and in Note A to the consolidated financial statements, the Company adopted the new leases accounting standard as of February 3, 2019.
−Removed: This resulted in the Company recording right of use (ROU) assets and lease liabilities of $9 billion.
−Removed: Management made an accounting policy election to keep leases with a term of twelve months or less off the consolidated balance sheets and recognizes the lease payments on a straight-line basis over the lease term.
−Removed: At the inception of an arrangement, management determines if the arrangement is a lease based on assessment of the terms and conditions of the contract.
−Removed: Operating lease ROU assets and lease liabilities are recognized at possession date based on the present value of lease payments over the lease term.
−Removed: As the Company’s leases do not provide an implicit rate, nor is one readily available, management uses the Company’s incremental borrowing rate based on the information available at possession date in determining the present value of future lease payments.
−Removed: The incremental borrowing rate is calculated based on the US Consumer Discretionary yield curve and adjusted for collateralization and foreign currency impact for TJX International and Canada leases.
−Removed: The principal considerations for our determination that performing procedures relating to the adoption of the leases accounting standard is a critical audit matter are there was a high degree of subjectivity and effort in performing procedures and in evaluating audit evidence with respect to management’s conclusions relating to identifying the population of contracts within the scope of the standard and in evaluating the lease term and incremental borrowing rate used to calculate the right of use asset and lease liability for each lease.
−Removed: Also, there was significant audit effort in performing our procedures due to the large volume of contracts that management evaluated under the new accounting standard and the significance of the ROU asset and lease liability balances recorded at the adoption date.
+Added: Income Tax (Benefit) Provision
+Added: As described in Note L to the consolidated financial statements, the Company recorded a benefit for income taxes of $1.2 million for the year ended January 30, 2021, has a deferred tax asset net of deferred tax liability of $90 million, including a valuation allowance of $77 million, as of January 30, 2021 and total gross unrecognized tax benefits of $269 million as of January 30, 2021, of which $250 million would affect the Company’s effective tax rate if recognized in a future period.
+Added: The Company is subject to taxation in the United States, as well as various state, local and foreign jurisdictions.
+Added: The use of estimates and judgments, as well as the interpretation and application of complex tax laws is required by management to determine its (benefit) provision for income taxes.
+Added: The principal considerations for our determination that performing procedures relating to the (benefit) provision for income taxes is a critical audit matter are the (i) the significant judgment by management when determining the (benefit) provision for income taxes, which led to (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures relating to the (benefit) provision for income taxes.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.
−Removed: These procedures included testing the effectiveness of controls relating to the adoption of the new leases accounting standard.
−Removed: These procedures also included, among others, (i) evaluating the appropriateness of accounting policies established by management in connection with the adoption of the new standard, (ii) evaluating management’s process and conclusions for determining whether contracts contain a lease, on a sample basis by independently evaluating the contract terms, (iii) evaluating the reasonableness of the incremental borrowing rate involved comparing the interest rates to observable yield curves that are similar to the lease terms and have a similar credit rating as the Company, and (iv) testing the inputs to management’s calculation of the ROU asset and lease liability, on a sample basis, for completeness and accuracy by comparing them to the underlying contract.
+Added: These procedures included testing the effectiveness of controls relating to the (benefit) provision for income taxes.
+Added: These procedures also included, among others (i) testing the (benefit) provision for income taxes, including the rate reconciliation and current and deferred tax (benefit) provision, and (ii) evaluating the completeness of uncertain tax positions, including application of foreign and domestic tax laws and regulations.
/s/PricewaterhouseCoopers LLP
11 unchanged sentences
Selling, general and administrative expenses 7,020,917 7,454,988 6,923,564
−Removed: Impairment of goodwill and other long-lived assets, related to Sierra — — 99,250
−Removed: Pension settlement charge — 36,122 —
+Added: Loss on early extinguishment of debt 312,233 — —
Interest expense, net 180,734 10,026 8,860
−Removed: Income before provision for income taxes 4,406,183 4,173,211 3,856,588
−Removed: Provision for income taxes 1,133,990 1,113,413 1,248,640
+Added: Pension settlement charge — — 36,122
+Added: Income before income taxes 89,263 4,406,183 4,173,211
+Added: Benefit (provision) for income taxes 1,207 ( 1,133,990 ) ( 1,113,413 )
Net income $ 90,470 $ 3,272,193 $ 3,059,798
10 unchanged sentences
Net income $ 90,470 $ 3,272,193 $ 3,059,798
−Removed: Additions to other comprehensive loss:
−Removed: Foreign currency translation adjustments, net of related tax benefits of $ 1,189 and $ 8,233 in fiscal 2020 and 2019, respectively, and provision of $ 36,929 in fiscal 2018
+Added: Additions to other comprehensive income (loss):
+Added: Foreign currency translation adjustments, net of related tax provision of $ 2,442 in fiscal 2021 and tax benefits of $ 1,189 and $ 8,233 in fiscal 2020 and 2019, respectively
15,588 ( 3,943 ) ( 192,664 )
Gain on net investment hedges, net of related tax provision of $ 7,113 in fiscal 2019
−Removed: Recognition of net gains/losses on benefit obligations, net of related tax benefits of $ 20,489 and $ 19,813 in fiscal 2020 and 2019, respectively, and provision of $ 8,989 in fiscal 2018
+Added: Recognition of net gains/losses on benefit obligations, net of related tax provision of $ 9,974 in fiscal 2021 and tax benefits of $ 20,489 and $ 19,813 in fiscal 2020 and 2019, respectively
30,635 ( 56,275 ) ( 54,420 )
4 unchanged sentences
20,046 16,537 11,756
−Removed: Other comprehensive (loss) income, net of tax ( 42,850 ) ( 188,462 ) 252,367
+Added: Other comprehensive income (loss), net of tax 67,100 ( 42,850 ) ( 188,462 )
Total comprehensive income $ 157,570 $ 3,229,343 $ 2,871,336
10 unchanged sentences
Prepaid expenses and other current assets 434,977 368,048
+Added: Federal, state and foreign income taxes recoverable 36,262 46,969
Total current assets 15,739,337 8,890,622
9 unchanged sentences
Current portion of operating lease liabilities 1,677,605 1,411,216
+Added: Current portion of long-term debt 749,684 —
Federal, state and foreign income taxes payable 81,523 24,700
4 unchanged sentences
Long-term debt 5,332,921 2,236,625
−Removed: Commitments and contingencies (See Note N)
+Added: Commitments and contingencies (See Note O)
SHAREHOLDERS’ EQUITY
17 unchanged sentences
Depreciation and amortization 870,758 867,303 819,655
+Added: Loss on early extinguishment of debt 312,233 — —
Loss on property disposals and impairment charges 83,794 16,054 17,653
1 unchanged sentence
Share-based compensation 58,519 124,957 103,557
−Removed: Impairment of goodwill and long-lived assets, related to Sierra — — 99,250
Pension settlement charge — — 36,122
1 unchanged sentence
(Increase) in accounts receivable ( 71,091 ) ( 42,998 ) ( 23,532 )
−Removed: (Increase) in merchandise inventories ( 296,541 ) ( 465,429 ) ( 450,377 )
+Added: Decrease (increase) in merchandise inventories 588,756 ( 296,541 ) ( 465,429 )
+Added: Decrease (increase) in income taxes recoverable 10,707 ( 34,177 ) 15,452
(Increase) decrease in prepaid expenses and other current assets ( 57,450 ) ( 17,084 ) 220,890
1 unchanged sentence
Increase in accrued expenses and other liabilities 584,502 345,745 169,418
−Removed: (Decrease) increase in income taxes payable ( 128,342 ) 40,965 ( 94,492 )
+Added: Increase (decrease) in income taxes payable 52,791 ( 128,342 ) 40,965
+Added: Increase in net operating lease liabilities 200,243 29,617 —
Other, net ( 42,842 ) ( 93,292 ) ( 15,708 )
8 unchanged sentences
Cash flows from financing activities:
−Removed: Cash payments for repurchase of common stock ( 1,551,992 ) ( 2,406,997 ) ( 1,644,581 )
+Added: Payments on revolving credit facilities ( 1,000,000 ) — —
+Added: Proceeds from long-term debt including revolving credit facilities 5,986,873 — —
+Added: Payments of long-term debt and extinguishment expenses ( 1,418,358 ) — —
+Added: Payments for debt issuance expenses ( 42,377 ) — —
+Added: Payments for repurchase of common stock ( 201,500 ) ( 1,551,992 ) ( 2,406,997 )
Proceeds from issuance of common stock 211,189 232,106 255,241
−Removed: Cash payments of employee tax withholdings for performance based stock awards ( 23,423 ) ( 16,014 ) ( 19,274 )
+Added: Payments of employee tax withholdings for performance based stock awards ( 29,309 ) ( 23,423 ) ( 16,014 )
Cash dividends paid ( 278,256 ) ( 1,071,562 ) ( 922,596 )
Other — — ( 7,115 )
−Removed: Net cash (used in) financing activities ( 2,414,871 ) ( 3,097,481 ) ( 2,297,346 )
+Added: Net cash provided by (used in) financing activities 3,228,262 ( 2,414,871 ) ( 3,097,481 )
Effect of exchange rate changes on cash 41,264 ( 3,175 ) ( 95,674 )
−Removed: Net increase (decrease) in cash and cash equivalents 186,523 271,752 ( 171,372 )
+Added: Net increase in cash and cash equivalents 7,252,818 186,523 271,752
Cash and cash equivalents at beginning of year 3,216,752 3,030,229 2,758,477
8 unchanged sentences
Shares Par Value
−Removed: Balance, January 28, 2017
+Added: Balance, February 3, 2018
1,256,018 $ 1,256,018 $ — $ ( 441,859 ) $ 4,334,150 $ 5,148,309
Net income — — — — 3,059,798 3,059,798
−Removed: Other comprehensive income, net of tax — — — 252,367 — 252,367
+Added: Cumulative effect of accounting change — — — — 58,712 58,712
+Added: Other comprehensive (loss), net of tax — — — ( 188,462 ) — ( 188,462 )
Cash dividends declared on common stock — — — — ( 965,539 ) ( 965,539 )
14 unchanged sentences
Net income — — — — 90,470 90,470
−Removed: Cumulative effect of accounting change (See Note A) — — — — 403 403
−Removed: Other comprehensive (loss), net of tax — — — ( 42,850 ) — ( 42,850 )
+Added: Other comprehensive income, net of tax — — — 67,100 — 67,100
Cash dividends declared on common stock — — — — ( 311,970 ) ( 311,970 )
−Removed: Recognition of share-based compensation — — 124,957 — — 124,957
+Added: Recognition (reversal) of share-based compensation — — 112,923 — ( 54,404 ) 58,519
Issuance of common stock under stock incentive plan and related tax effect 8,985 8,985 173,307 — ( 439 ) 181,853
Common stock repurchased ( 3,387 ) ( 3,387 ) ( 25,715 ) — ( 172,398 ) ( 201,500 )
−Removed: Balance, February 1, 2020
+Added: Balance, January 30, 2021
1,204,698 $ 1,204,698 $ 260,515 $ ( 606,071 ) $ 4,973,542 $ 5,832,684
8 unchanged sentences
Investments for which the Company exercises significant influence but does not have control are accounted for under the equity method.
−Removed: Our investments accounted for under the equity method of accounting are immaterial to the Company's Consolidated Financial Statements.
+Added: TJX is impacted by the uncertainty surrounding the financial impact of the novel coronavirus (“COVID-19”) pandemic as discussed in Note B—Impact of the COVID-19 Pandemic.
TJX’s fiscal year ends on the Saturday nearest to the last day of January of each year.
−Removed: The fiscal years ended February 1, 2020 (“fiscal 2020”) and ended February 2, 2019 (“fiscal 2019”) were 52-week fiscal years and the fiscal year ended February 3, 2018 ("fiscal 2018") was a 53-week fiscal year.
+Added: The fiscal years ended January 30, 2021 (“fiscal 2021”), February 1, 2020 (“fiscal 2020”) and February 2, 2019 ("fiscal 2019") were 52-week fiscal years.
Use of Estimates
−Removed: The preparation of TJX’s financial statements, in conformity with 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.
−Removed: TJX considers its accounting policies relating to leases, inventory valuation, impairment of long-lived assets, goodwill and tradenames, reserves for uncertain tax positions and loss contingencies to be the most significant accounting policies that involve management estimates and judgments.
−Removed: Actual amounts could differ from those estimates, and such differences could be material.
+Added: The preparation of financial statements, in conformity with 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.
+Added: TJX considers its accounting policies relating to leases, inventory valuation, impairment of long-lived assets, reserves for uncertain tax positions and loss contingencies to be the most significant accounting policies that involve management estimates and judgments.
+Added: The Company considered COVID-19 related impacts to its estimates, as appropriate, within its consolidated financial statements and there may be changes to those estimates in future periods.
+Added: The Company believes that its accounting estimates are appropriate after giving consideration to the ongoing uncertainties surrounding the severity and duration of the COVID-19 pandemic and the associated containment and remediation efforts.
+Added: Actual amounts could differ from these estimates, and such differences could be material.
+Added: Reclassifications
+Added: Certain reclassifications have been made to prior year financial information to conform to the current year presentation.
Summary of Accounting Policies
1 unchanged sentence
Net sales consist primarily of merchandise sales, which are recorded net of a reserve for estimated returns, any discounts and sales taxes, for the sales of merchandise both within our stores and online.
−Removed: Net sales also include an immaterial amount of other revenues that represent less than 1.0% of total revenues, primarily generated from TJX’s co-branded loyalty rewards credit card program offered in the United States only.
+Added: Net sales also include an immaterial amount of other revenues that represent less than 1 % of total revenues, primarily generated from shipping fee revenue on our online sales.
In addition, certain customers may receive discounts that are accounted for as consideration reducing the transaction price.
6 unchanged sentences
Shipping and handling costs incurred by TJX are included in cost of sales, including buying and occupancy costs.
−Removed: TJX disaggregates revenue by operating segment, see Note G—Segment Information of Notes to Consolidated Financial Statements.
+Added: TJX disaggregates revenue by operating segment, see Note H—Segment Information.
Deferred Gift Card Revenue
1 unchanged sentence
While gift cards have an indefinite life, substantially all are redeemed in the first year of issuance.
−Removed: In thousands February 1,
+Added: The following table presents deferred gift card revenue activity:
+Added: In thousands January 30,
2021 February 1,
4 unchanged sentences
Balance, end of year $ 576,187 $ 500,844
−Removed: TJX recognized $ 1.6 billion in gift card revenue in each of fiscal 2020 and fiscal 2019.
+Added: TJX recognized $ 1.1 billion in gift card revenue in fiscal 2021 and $ 1.6 billion in each of fiscal 2020 and fiscal 2019.
+Added: The decrease in fiscal 2021 in both deferred revenue and revenue recognized versus the prior year reflects the impact of lower customer traffic and temporary store and e-commerce closures due to the COVID-19 pandemic.
Gift cards are combined in one homogeneous pool and are not separately identifiable.
As such, the revenue recognized consists of gift cards that were part of the deferred revenue balance at the beginning of the period as well as gift cards that were issued during the period.
−Removed: Based on historical experience, we estimate the amount of gift cards and store cards that will not be redeemed (referred to as breakage) and, to the extent allowed by local law, these amounts are amortized into income over the redemption period.
+Added: Based on historical experience, the Company estimates the amount of gift cards and store cards that will not be redeemed (referred to as breakage) and, to the extent allowed by local law, these amounts are amortized into income over the estimated redemption period.
Revenue recognized from breakage was $ 14 million in fiscal 2021, $ 20 million in fiscal 2020 and $ 21 million in fiscal 2019.
Sales Return Reserve
−Removed: Our products are generally sold with a right of return and we may provide other credits or incentives, which are accounted for as variable consideration when estimating the amount of revenue to recognize.
−Removed: We have elected to apply the portfolio practical expedient.
−Removed: We estimate the variable consideration using the expected value method when calculating the returns reserve because the difference in applying it to the individual contract would not differ materially.
+Added: The Company's products are generally sold with a right of return and the Company may provide other credits or incentives, which are accounted for as variable consideration when estimating the amount of revenue to recognize.
+Added: The Company has elected to apply the portfolio practical expedient.
+Added: The Company estimates the variable consideration using the expected value method when calculating the returns reserve because the difference in applying it to the individual contract would not differ materially.
Returns are estimated based on historical experience and are required to be established and presented at the gross sales value with an asset established for the estimated value of the merchandise returned separate from the refund liability.
21 unchanged sentences
TJX’s investments are primarily high-grade commercial paper, institutional money market funds and time deposits with major banks.
−Removed: As of February 1, 2020, TJX’s cash and cash equivalents held outside the U.S.
−Removed: were $ 953.6 million, of which $ 584.7 million was held in countries where TJX has the intention to reinvest any undistributed earnings indefinitely.
+Added: As of January 30, 2021, TJX’s cash and cash equivalents held outside the U.S.
+Added: were $ 1.2 billion, of which $ 0.8 billion was held in countries where TJX has the intention to reinvest any undistributed earnings indefinitely.
Merchandise Inventories
1 unchanged sentence
TJX uses the retail method for valuing inventories at all of its businesses, except T.K.
−Removed: Maxx in Australia.
+Added: Maxx in Australia which is immaterial.
The businesses that utilize the retail method have some inventory that is initially valued at cost before the retail method is applied as that inventory has not been fully processed for sale (e.g.
2 unchanged sentences
TJX records inventory at the time title transfers, which is typically at the time when inventory is shipped.
−Removed: As a result, merchandise inventories on TJX’s Consolidated Balance Sheets include in-transit inventory of $ 807.0 million at February 1, 2020 and $ 832.1 million at February 2, 2019.
+Added: As a result, merchandise inventories on TJX’s Consolidated Balance Sheets include in-transit inventory of $ 1.2 billion at January 30, 2021 and $ 0.8 billion at February 1, 2020.
Comparable amounts were reflected in Accounts payable at those dates.
3 unchanged sentences
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.
−Removed: Due to the high volume of repurchases over the past several years, TJX has no remaining balance in APIC at the end of any of the years presented.
+Added: Due to the volume of share repurchases under previous programs, TJX has historically had no remaining balance in APIC.
All shares repurchased have been retired.
2 unchanged sentences
Any excess tax benefits or deficiencies are included in the provision for income taxes.
−Removed: The par value of performance-based deferred stock awards, performance share units and restricted stock units is added to common stock when shares are delivered following vesting.
−Removed: The par value of performance-based restricted stock awards is added to common stock when the stock is issued, generally at grant date.
+Added: The par value of performance share units and restricted stock units is added to common stock when shares are delivered following performance measurement date or service period to the extent vesting requirements have been achieved.
The fair value of stock awards and units are added to APIC as the awards are amortized into earnings over the related requisite service periods.
2 unchanged sentences
TJX uses the Black-Scholes option pricing model for options awarded and the market price on the grant date for stock awards.
−Removed: See Note H—Stock Incentive Plan of Notes to Consolidated Financial Statements for a detailed discussion of share-based compensation.
+Added: Performance-based awards are evaluated quarterly for probability of vesting and performance achievement levels.
+Added: See Note I—Stock Incentive Plan for a detailed discussion of share-based compensation.
TJX’s interest expense is presented net of capitalized interest and interest income.
1 unchanged sentence
Fiscal Year Ended
−Removed: In thousands February 1,
+Added: In thousands January 30,
2021 February 1,
11 unchanged sentences
Depreciation and amortization expense for property was $ 858 million in fiscal 2021, $ 858 million in fiscal 2020 and $ 819 million in fiscal 2019.
−Removed: TJX had no property held under finance leases during fiscal 2020 or under capital leases during fiscal 2019 or 2018.
+Added: TJX had no property held under finance leases during fiscal 2021 and fiscal 2020 or under capital leases during fiscal 2019.
Maintenance and repairs are charged to expense as incurred.
3 unchanged sentences
Lease Accounting
−Removed: We adopted ASU No.
+Added: The Company adopted ASU No.
2016-02, Leases (Topic 842), as of February 3, 2019, using the modified retrospective method under ASU 2018-11.
−Removed: The transition method allows entities to apply the transition requirements at the effective date rather than at the beginning of the earliest comparative period presented.
−Removed: Our reporting for comparative periods is presented in accordance with ASC 840, Leases.
−Removed: Adoption of the new standard resulted in the recording of right of use (“ROU”) assets and lease liabilities of $ 9 billion, as of February 3, 2019.
−Removed: The Company elected the transition package of three practical expedients, which among other things, allowed us to carry forward the historical lease classification.
−Removed: We have elected the practical expedient to not separate non-lease components from the lease components to which they relate and instead to combine them and account for them as a single lease component.
+Added: The Company elected the transition package of three practical expedients, which among other things, allowed it to carry forward the historical lease classification.
+Added: The Company has elected the practical expedient to not separate non-lease components from the lease components to which they relate and instead to combine them and account for them as a single lease component.
The Company also elected the accounting policy election to keep leases with a term of twelve months or less off the Consolidated Balance Sheets and recognizes these lease payments on a straight-line basis over the lease term.
−Removed: With the adoption of the new lease accounting standard TJX has de-recognized build-to-suit lease assets and liabilities that were included in the fiscal 2019 Consolidated Balance Sheets.
−Removed: Operating leases that TJX enters into no longer meet the definition of control of the building during the construction period under the new standard.
Operating leases are included in “Operating lease right of use assets”, “Current portion of operating lease liabilities”, and “Long-term operating lease liabilities” on our Consolidated Balance Sheets.
3 unchanged sentences
The majority of our leases are retail store locations and the possession date 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.
−Removed: Our lessors do not provide an implicit rate, nor is one readily available, therefore we use our incremental borrowing rate based on the information available at possession date in determining the present value of future lease payments.
+Added: Our lessors do not provide an implicit rate, nor is one readily available, therefore the Company uses its incremental borrowing rate based on the information available at possession date in determining the present value of future lease payments.
The incremental borrowing rate is calculated based on the US Consumer Discretionary yield curve and adjusted for collateralization and foreign currency impact for TJX International and Canada leases.
The operating lease ROU assets also include any acquisition costs offset by lease incentives.
−Removed: Our lease terms include options to extend the lease when it is reasonably certain that we will exercise that option.
+Added: The Company’s lease terms include options to extend the lease when it is reasonably certain that the Company will exercise that option.
Lease expense for lease payments is recognized on a straight-line basis over the lease term within “Cost of sales, including buying and occupancy costs”.
−Removed: Impact of New Lease Standard on Consolidated Balance Sheet Line Items
−Removed: As a result of applying the new lease standard using the optional transition method, the following adjustments were made to accounts as of February 3, 2019, as reflected on the Condensed Consolidated Balance Sheet shown below:
−Removed: In thousands As Reported February 2, 2019
−Removed: Adjustments Adjusted February 3, 2019
−Removed: Prepaid expenses and other current assets $ 513,662 $ ( 149,029 ) (a)
−Removed: Net property at cost 5,255,208 ( 281,361 ) (b),(f)
−Removed: Operating lease right of use asset — 8,704,584 (c)
−Removed: Other assets 497,580 ( 30,086 ) (b)
−Removed: Total Assets $ 14,326,029 $ 8,244,108 $ 22,570,137
−Removed: Accrued expenses and other current liabilities 2,733,076 ( 3,819 ) 2,729,257
−Removed: Current portion of operating lease liabilities — 1,481,555 (d)
−Removed: Other long-term liabilities 1,354,242 ( 593,137 ) (e),(f)
−Removed: Long-term operating lease liabilities — 7,359,106 (d)
−Removed: Retained earnings 4,461,744 403 (f),(g)
−Removed: Total Liabilities and Shareholders' Equity $ 14,326,029 $ 8,244,108 $ 22,570,137
−Removed: (a) Represents prepaid rent reclassified to operating lease right of use assets and current portion of operating lease liabilities.
−Removed: (b) Represents impact of reclassifying initial direct costs to operating lease right of use assets.
−Removed: (c) Represents capitalization of operating lease right of use assets and reclassification of lease acquisition costs, straight-line rent, prepaid rent and tenant incentives.
−Removed: (d) Represents recognition of current and long-term operating lease liabilities.
−Removed: (e) Represents reclassification of straight-line rent to operating lease right of use assets.
−Removed: (f) Represents de-recognition of assets and liabilities related to non-TJX owned properties under previously existing build-to-suit accounting rules.
−Removed: (g) Represents impairment at transition on operating lease right of use assets.
−Removed: See Note L—Leases of Notes to Consolidated Financial Statements for additional information.
−Removed: Asset Retirement Obligations
−Removed: The Company establishes an asset retirement obligation, and related asset, for leases of property that require us to return the property to its original condition (commonly referred to as a reinstatement provision) if and when we exit the facility.
−Removed: These reinstatement provisions are primarily applicable to our TJX International locations.
−Removed: The income statement impact of our asset retirement obligation is recorded in general corporate expenses and our operating divisions are charged the actual costs incurred when a retirement takes place.
+Added: See Note M—Leases for a detailed discussion of lease accounting.
Goodwill and Tradenames
Goodwill includes 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.
−Removed: Maxx chain, as well as the excess of cost over the estimated fair market value of the net assets acquired by TJX in the purchase of Winners in fiscal 1991, the purchase of Sierra Trading Post in fiscal 2013, which was rebranded as Sierra in fiscal 2019, and the purchase of Trade Secret in fiscal 2016, which was re-branded under the T.K.
−Removed: Maxx name during fiscal 2018.
−Removed: In fiscal 2018, the Company fully impaired the Sierra goodwill, recording a goodwill impairment charge of $ 97.3 million.
−Removed: The following is a roll forward of goodwill by component:
−Removed: In thousands Marmaxx Winners T.K.
−Removed: Australia Total
+Added: Maxx chain, and the purchase of Sierra Trading Post in fiscal 2013, which was rebranded as Sierra in fiscal 2019, both which are included in Marmaxx.
+Added: The Company fully impaired the Sierra goodwill, recording an impairment charge of $ 97 million in fiscal 2018.
+Added: The Company’s goodwill also includes, the excess of cost over the estimated fair market value of the net assets acquired by TJX in the purchase of Winners in fiscal 1991, included in TJX Canada, as well as the purchase of Trade Secret in fiscal 2016, which was re-branded under the T.K.
+Added: Maxx name during fiscal 2018 and is included in TJX International.
+Added: The following is a roll forward of goodwill by segment:
+Added: In thousands Marmaxx TJX Canada TJX International Total
Balance, February 2, 2019 $ 70,027 $ 1,692 $ 25,833 $ 97,552
2 unchanged sentences
Effect of exchange rate changes on goodwill — 61 3,391 3,452
−Removed: Balance, February 1, 2020 $ 70,027 $ 1,675 $ 23,844 $ 95,546
+Added: Balance, January 30, 2021 $ 70,027 $ 1,736 $ 27,235 $ 98,998
Goodwill is considered to have an indefinite life and accordingly is not amortized.
3 unchanged sentences
The Sierra Trading Post tradename is being amortized over 15 years.
−Removed: The Trade Secret tradename is being amortized over 7 years.
+Added: During the first quarter of fiscal 2021, the Company fully impaired the Trade Secret tradename, recording an impairment charge of $ 5 million.
The following is a roll forward of tradenames:
Fiscal Year Ended
−Removed: February 1, 2020 February 2, 2019
+Added: January 30, 2021 February 1, 2020
In thousands Gross Carrying Amount Accumulated Amortization Impact of FX Net Carrying Value Gross Carrying Amount Accumulated Amortization Impact of FX Net Carrying Value
8 unchanged sentences
Impairment of Long-Lived Assets, Goodwill and Tradenames
−Removed: TJX evaluates its long-lived assets, operating lease right of use assets, goodwill and tradenames for indicators of impairment at least annually in the fourth quarter of each fiscal year or whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.
−Removed: The evaluation for long-lived assets, including tradenames that are amortized and operating lease right of use assets, is performed at the lowest level of identifiable cash flows which are largely independent of other groups of assets, generally at the individual store level for fixed assets and operating lease right of use assets, and at the reporting unit for tradenames that are amortized.
+Added: TJX evaluates long-lived assets, including tradenames that are amortized and operating lease right of use assets, for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.
+Added: This evaluation is performed at the lowest level of identifiable cash flows which are largely independent of other groups of assets, generally at the individual store level for fixed assets and operating lease right of use assets, and at the reporting unit for tradenames that are amortized.
If indicators of impairment are identified, an undiscounted cash flow analysis is performed to determine if the carrying value of the asset or asset group is recoverable.
If the cash flow is less than the carrying value then an impairment charge will be recorded to the extent the fair value of an asset or asset group is less than the carrying value of that asset or asset group.
−Removed: This analysis resulted in immaterial impairment charges of store fixed assets and operating lease right of use assets in fiscal 2020 and store fixed assets in fiscal 2019 and fiscal 2018.
−Removed: Goodwill and tradenames with an indefinite life are 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.
−Removed: The carrying value of tradenames with an indefinite life is compared to its fair value determined by calculating the discounted present value of assumed after-tax royalty payments to the carrying value of the tradename.
−Removed: There was no impairment related to tradenames in fiscal 2020, 2019 or 2018.
+Added: This resulted in immaterial impairment charges on operating lease right of use assets and store fixed assets in fiscal 2021 and fiscal 2020, and immaterial impairment charges on store fixed assets in fiscal 2019.
+Added: In fiscal 2021, the Company fully impaired the Trade Secret tradename.
+Added: There were no impairments related to tradenames in fiscal 2020 or 2019.
+Added: Goodwill and indefinite life tradenames are 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.
Goodwill is tested for impairment by using a quantitative assessment 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.
−Removed: We may assess qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill.
+Added: The Company may assess qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill.
The assessment of qualitative factors is optional and at the Company’s discretion.
−Removed: In fiscal 2020, fiscal 2019 and fiscal 2018, we bypassed the qualitative assessment and performed the quantitative goodwill impairment test.
−Removed: In fiscal 2018 the Company recorded an impairment charge of $ 97.3 million for Sierra goodwill as the estimated fair value of this business fell below the carrying value due to a decrease in projected revenue growth rates.
−Removed: There were no impairments related to our goodwill in fiscal 2020 or 2019.
+Added: Indefinite life tradenames are tested for impairment by comparing their carrying value to their fair value, which is determined by calculating the discounted present value of assumed after-tax royalty payments.
+Added: In fiscal 2021, fiscal 2020 and fiscal 2019, the Company bypassed the qualitative assessment and performed the quantitative impairment test.
+Added: There were no impairments related to the Company’s goodwill or indefinite life tradenames in fiscal 2021, 2020, or 2019.
Advertising Costs
10 unchanged sentences
Equity Investment
−Removed: On November 18, 2019, the Company, through a wholly owned subsidiary, completed an investment of $ 225 million, excluding acquisition costs, for a 25 % ownership stake in privately held Familia, an established, off-price apparel and home fashions retailer with more than 275 stores throughout Russia.
−Removed: The Company's investment represents a non-controlling, minority position.
−Removed: As part of this investment, TJX has appointed one member to the Board of Directors of Familia.
−Removed: This investment is included in Other assets on our Consolidated Balance Sheets and is accounted for under the equity method of accounting from the date of investment forward.
−Removed: TJX will report its share of Familia’s results on a one-quarter lag as their results are not expected to be available in time to be recorded in the concurrent period.
−Removed: As a result, there were no reported earnings from TJX's investment in Familia for the fiscal year ended February 1, 2020.
+Added: In fiscal 2020, the Company acquired a 25 % ownership stake in privately held Familia, an established, off-price apparel and home fashions retailer operating stores throughout Russia.
+Added: The Company accounts for its equity investment in Familia using the equity method of accounting, with the investment recorded in Other assets on our Consolidated Balance Sheets, and the Company’s share of Familia’s results recorded in Selling, general and administrative expenses in our Consolidated Statements of Income.
+Added: Due to the timing and availability of financial information of Familia, the Company accounts for this equity method investment on a one-quarter lag.
+Added: As of fiscal 2021 and fiscal 2020, the carrying value of the Company’s equity investment in Familia was $ 196 million and $ 230 million, respectively, which exceeded its share of Familia’s net assets by approximately $ 186 million and $ 212 million, respectively.
+Added: Substantially all of this difference is comprised of goodwill.
+Added: Revaluing the investment from Russian rubles to the U.S.
+Added: dollar as of January 30, 2021 resulted in a cumulative translation loss and reduced the carrying value of our investment by $ 35 million.
+Added: The cumulative translation loss has been recorded in our Consolidated Balance Sheets as a component of Accumulated other comprehensive loss.
+Added: Other indefinite-lived intangible assets consisting of tradename and customer relationships are amortized straight line over their useful lives of 10 years for the tradename and 7 years for customer relationship.
+Added: This investment is evaluated for indicators of impairment on a periodic basis or whenever events or circumstances indicate the carrying amount may be other-than-temporarily impaired.
+Added: If the Company concludes that there is an other-than-temporary impairment of this equity investment, it will adjust the carrying amount of the investment to the current fair value.
+Added: As of fiscal year ended 2021 and 2020, the Company determined that no impairment of its equity method investment existed.
Future Adoption of New Accounting Standards
1 unchanged sentence
Updates to the FASB Accounting Standards Codification are communicated through issuance of an Accounting Standards Update (“ASU”).
−Removed: Unless otherwise discussed, we have reviewed the guidance and have determined that they will not apply or are not expected to be material to our Consolidated Financial Statements upon adoption and therefore, are not disclosed.
−Removed: Simplified Accounting for Income Taxes
−Removed: In December 2019, the Financial Accounting Standards Board issued guidance related to simplified accounting for income taxes.
−Removed: The standard simplifies accounting for income taxes by removing certain exceptions to the general principals in Topic 740 and improves the consistency in the application of the standard by clarifying and amending existing guidance.
−Removed: This standard will be effective for annual reporting periods, including interim reporting within those periods, beginning after December 15, 2020, with early adoption permitted.
−Removed: The Company is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements.
+Added: Unless otherwise discussed, the Company has reviewed the guidance and have determined that they will not apply or are not expected to be material to our Consolidated Financial Statements upon adoption and therefore, are not disclosed.
Recently Adopted Accounting Standards
−Removed: See Leases in Note A—Basis of Presentation and Summary of Accounting Policies of Notes to Consolidated Financial Statements for the impact upon adoption.
−Removed: Intangibles-Goodwill and Other-Internal-Use Software
−Removed: In August 2018, the Financial Accounting Standards Board issued guidance related to accounting for implementation costs incurred in a cloud computing arrangement that is a service contract.
−Removed: The standard allows entities who are customers in hosting arrangements that are service contracts to apply the existing internal-use software guidance to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense.
−Removed: The guidance specifies classification for capitalizing implementation costs and related amortization expense within the Consolidated Financial Statements and requires additional disclosures.
−Removed: The Company early adopted the standard prospectively in the third quarter of fiscal 2020.
−Removed: The standard did not have a material impact on our Consolidated Financial Statements.
−Removed: Income Statement - Reporting Comprehensive Income
−Removed: In February 2018, the FASB issued updated guidance related to reporting comprehensive income.
−Removed: The amendments in the update allow for a one-time reclassification from accumulated other comprehensive income (“AOCI”) to retained earnings for stranded tax effect as a result from the enactment of the Tax Cuts and Jobs Act of 2017 (“2017 Tax Act”).
−Removed: The Company adopted the standard and made the policy election not to reclassify the stranded tax effects as of result of the 2017 Tax Act to retained earnings.
+Added: Simplified Accounting for Income Taxes
+Added: In December 2019, the FASB issued guidance related to simplified accounting for income taxes.
+Added: The new standard simplifies accounting for income taxes by removing certain exceptions to the general principals in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences.
+Added: It also clarifies and simplifies other aspects of the accounting for income taxes.
+Added: This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020, with early adoption permitted in any interim period within that year.
+Added: The Company reviewed the provisions of this standard and determined that most of them do not apply to TJX.
+Added: The most significant impact to the Company is the simplification of the tax benefit calculation recognized on pre-tax losses in interim periods.
+Added: The Company elected to early adopt this standard as of February 2, 2020, which did not have an impact on the Company's Consolidated Financial Statements or disclosures for fiscal 2021.
+Added: Impact of the COVID-19 Pandemic
+Added: After a novel coronavirus disease (“COVID-19”) emerged and spread worldwide, the World Health Organization declared COVID-19 a pandemic in March 2020, and national, state and local governments and private entities began issuing various restrictions, including travel restrictions, restrictions on public gatherings, stay at home orders and advisories and quarantine or isolation protocols.
+Added: The Company temporarily closed all of its stores, its online businesses, its distribution centers and its offices in March 2020, with Associates working remotely where possible.
+Added: During April 2020, the Company temporarily furloughed the majority of the hourly store and distribution center Associates in the U.S.
+Added: and Canada, with employee benefits coverage for eligible Associates continuing during the temporary furlough at no cost to impacted Associates.
+Added: The Company also took comparable actions with respect to portions of our European and Australian workforces.
+Added: When the Company began to reopen stores and distribution centers in May 2020, it implemented new health and safety practices, including practices related to personal protective equipment and social distancing protocols.
+Added: Early in the fourth quarter of fiscal 2021, in response to increasing cases of COVID-19, hundreds of stores had additional temporary closures, primarily in Europe and Canada.
+Added: As of March 30, 2021, the Company has approximately 580 stores, primarily in Europe, that are temporarily closed due to government mandates in response to the COVID-19 global pandemic.
+Added: All of the Company’s e-commerce businesses remain open, including tkmaxx.com in the U.K.
+Added: In fiscal 2021, the Company amended the credit agreements governing its revolving credit facilities and as a result, the Company expects to maintain compliance with its covenants for at least one year from the issuance of these consolidated financial statements.
+Added: As the COVID-19 pandemic is complex and rapidly evolving, and cases have been rising around the world, the Company cannot reasonably estimate the duration and severity of this pandemic, which has had and may continue to have a material impact on its business, results of operations, financial position and cash flows.
+Added: Financial Actions
+Added: Balance Sheet, Cash Flow and Liquidity
+Added: During fiscal 2021 the Company generated $ 4.6 billion of operating cash flows and ended the year with $ 10.5 billion of cash.
+Added: In addition, the Company increased its borrowing capacity by entering into a $ 500 million 364 Day Revolving Credit Facility (as defined in Note K—Long-Term Debt and Credit Lines), making a total of $ 1.5 billion available to the Company under revolving credit facilities.
+Added: In the first quarter of fiscal 2021, TJX issued $ 4 billion aggregate principal amount of notes.
+Added: During the fourth quarter of fiscal 2021, the Company issued $ 1 billion in notes and accepted $ 1.12 billion in combined aggregate principal amount of certain of its notes issued in the first quarter of fiscal 2021 pursuant to cash tender offers.
+Added: The Company paid $ 1.42 billion aggregate consideration (including transaction costs) and recorded a $ 0.3 billion pre-tax loss on the early extinguishment for the accepted notes.
+Added: For additional information on the new credit facility and debt transactions, see Note K—Long-Term Debt and Credit Lines.
+Added: The Company's Board of Directors suspended its share buyback program and did not declare a dividend in the first nine months of fiscal 2021.
+Added: The Board of Directors declared a dividend of $ 0.26 per share in the fourth quarter of fiscal 2021, paid in March 2021.
+Added: During fiscal 2021, the Company negotiated rent deferrals (primarily for second quarter lease payments) for a significant number of its stores, with repayment at later dates, primarily in fiscal 2022.
+Added: Consistent with updated guidance from the FASB in April 2020, the Company elected to treat the COVID-19 pandemic-related rent deferrals as a resolution of a contingency by remeasuring the lease liability, with a corresponding offset to the right-of-use asset, using the remeasured consideration.
+Added: In addition to negotiating deferral of lease payments, the Company also temporarily extended payment terms on merchandise orders, which increased our accounts payable as of the end of the fiscal year, benefiting operating cash flows.
+Added: As payment terms are reduced and we make deferred payments, the Company expects our operating cash flows to be negatively impacted.
+Added: The Company evaluated the value of its inventory in light of the temporary store closures in the first and fourth quarters of fiscal 2021 due to the COVID-19 pandemic.
+Added: Permanent markdowns, which had been or will be taken upon reopening of the stores, on transitional or out of season merchandise and merchandise that was already in markdown status, combined with the write-off of perishable goods, resulted in a reduction of inventory for fiscal 2021.
+Added: Additional markdowns recorded throughout the year were taken in the ordinary course of business operations.
+Added: Given the substantial reduction in the Company’s sales and the reduced cash flow projections as a result of the temporary store closures during fiscal 2021 due to the COVID-19 pandemic, the Company determined that triggering events had occurred and that impairment assessments were warranted for certain stores.
+Added: This resulted in immaterial impairment charges for fiscal 2021 , related to operating lease right of use assets and store fixed assets.
+Added: In response to the COVI D-19 pandemic, governments in the U.S., United Kingdom ( “ U.K.
+Added: ” ), Canada and various other jurisdictions have implemented programs to encourage companies to retain and pay employees who are unable to work or are limited in the work that they can perform in light of closures or a significant decline in sales.
+Added: Throughout fiscal 2021, the Company continued to qualify for certain of these provisions, which partially offset related expenses.
+Added: During fiscal 2021, these programs reduced the Company’s expenses by approximately $ 0.5 billion o n its Consolidated Statements of Income, and increased Accounts receivable, net on its Consolidated Balance Sheets by approxim ately $ 0.1 billion.
+Added: These government programs also provide for the option to defer payroll tax and VAT payments, which has resulted in a combined increase in Accrued expenses and other current liabilities and Other long-term liabilities o n our Consolidated Balance Sheets b y approximately $ 0.3 billion.
+Added: The Company also incurred incremental costs associated with the COVID-19 pandemic, including primarily from:
+Added: – Incremental payroll costs associated with monitoring occupancy limits to comply with social distancing protocols and implementing enhanced cleaning regimens.
+Added: – Incremental expense related to the discre tionary appreciation bonus for store and distribution center Associates.
+Added: – Incremental cleaning supplies and personal protective equipment for our Associates.
Property at Cost
1 unchanged sentence
Fiscal Year Ended
−Removed: In thousands February 1,
+Added: In thousands January 30,
2021 February 1,
−Removed: Land and buildings (a)
+Added: Land and buildings
$ 1,668,381 $ 1,505,039
−Removed: Leasehold costs and improvements (a)
+Added: Leasehold costs and improvements
3,568,829 3,481,313
Furniture, fixtures and equipment
−Removed: Total property at cost $ 11,372,278 $ 10,729,119
−Removed: Less accumulated depreciation and amortization (a)
6,525,615 6,385,926
+Added: Total property at cost $ 11,762,825 $ 11,372,278
+Added: Less accumulated depreciation and amortization 6,726,729 6,047,230
Net property at cost $ 5,036,096 $ 5,325,048
−Removed: (a) See Leases in Note A—Basis of Presentation and Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements for impact of lease accounting changes.
Presented below is information related to carrying values of TJX’s long-lived tangible assets by geographic location:
Fiscal Year Ended
−Removed: In thousands February 1,
+Added: In thousands January 30,
2021 February 1,
3 unchanged sentences
Australia 51,781 44,487
−Removed: Total long-lived tangible assets (a)
−Removed: $ 5,325,048 $ 5,255,208
−Removed: (a) See Leases in Note A—Basis of Presentation and Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements for impact of lease accounting changes.
+Added: Total long-lived tangible assets $ 5,036,096 $ 5,325,048
Accumulated Other Comprehensive (Loss) Income
6 unchanged sentences
Comprehensive(Loss) Income
−Removed: Balance, January 28, 2017 $ ( 491,803 ) $ ( 199,481 ) $ ( 2,942 ) $ ( 694,226 )
+Added: Balance, February 3, 2018 $ ( 280,051 ) $ ( 159,562 ) $ ( 2,246 ) $ ( 441,859 )
Additions to other comprehensive loss:
1 unchanged sentence
( 192,664 ) — — ( 192,664 )
+Added: Recognition of net gains/losses on investment hedges (net of taxes of $ 7,113 )
+Added: 19,538 — — 19,538
Recognition of net gains/losses on benefit obligations (net of taxes of $ 19,813 )
1 unchanged sentence
Reclassifications from other comprehensive loss to net income:
+Added: Pension settlement charge (net of taxes of $ 9,641 )
+Added: — 26,481 — 26,481
Amortization of loss on cash flow hedge (net of taxes of $ 304
5 unchanged sentences
( 3,943 ) — — ( 3,943 )
−Removed: Recognition of net gains/losses on investment hedges (net of taxes of $ 7,113 )
−Removed: 19,538 — — 19,538
Recognition of net gains/losses on benefit obligations (net of taxes of $ 20,489 )
— ( 56,275 ) — ( 56,275 )
−Removed: Pension settlement charge (net of taxes of $ 9,641 )
−Removed: — 26,481 — 26,481
Reclassifications from other comprehensive loss to net income:
12 unchanged sentences
— 20,046 — 20,046
−Removed: Balance, February 1, 2020 $ ( 457,120 ) $ ( 215,483 ) $ ( 568 ) $ ( 673,171 )
+Added: Balance, January 30, 2021 $ ( 441,532 ) $ ( 164,802 ) $ 263 $ ( 606,071 )
Capital Stock and Earnings Per Share
Capital Stock
−Removed: TJX repurchased and retired 27.1 million shares of its common stock at a cost of $ 1.5 billion during fiscal 2020, on a “trade date basis.” TJX reflects stock repurchases in its financial statements on a “settlement date” or cash basis.
−Removed: TJX had cash expenditures under repurchase programs of $ 1.6 billion in fiscal 2020, $ 2.4 billion in fiscal 2019 and $ 1.6 billion in fiscal 2018, and repurchased 28.1 million shares in fiscal 2020, 50.8 million shares in fiscal 2019 and 44.4 million shares in fiscal 2018.
−Removed: These expenditures were funded primarily by cash generated from operations.
−Removed: As of February 1, 2020 TJX had approximately $ 1.7 billion available under previously announced stock repurchase programs.
−Removed: In February 2020, the Company announced that its Board of Directors had approved, in January 2020, a new stock repurchase program that authorizes the repurchase of up to an additional $ 1.5 billion of TJX common stock from time to time.
−Removed: In connection with the actions taken related to the novel coronavirus (“COVID-19”) pandemic as described in Note Q—Subsequent Event, the Company suspended its share repurchase program.
+Added: In March 2020, in connection with the actions taken related to the COVID-19 pandemic as described in Note B—Impact of the COVID-19 Pandemic, the Company suspended its share repurchase program.
+Added: During the first quarter of fiscal 2021, prior to the suspension of the Company’s share repurchase program, TJX repurchased and retired 3.2 million shares of its common stock at a cost of $ 190.1 million on a “trade date” basis.
+Added: All share repurchases occurred during the first quarter of fiscal 2021.
+Added: TJX reflects stock repurchases in its financial statements on a “settlement date” or cash basis.
+Added: TJX had cash expenditures under repurchase programs of $ 201.5 million in fiscal 2021, $ 1.6 billion in fiscal 2020 and $ 2.4 billion in fiscal 2019 and repurchased 3.4 million shares in fiscal 2021, 28.2 million shares in fiscal 2020 and 50.8 million shares in fiscal 2019.
+Added: These expenditures were funded by cash generated from operations.
+Added: As of January 30, 2021 TJX had approximately $ 3.0 billion available under previously announced stock repurchase programs.
All shares repurchased under the stock repurchase programs have been retired.
3 unchanged sentences
Fiscal Year Ended
−Removed: Amounts in thousands except per share amounts February 1,
+Added: Amounts in thousands except per share amounts January 30,
2021 February 1,
11 unchanged sentences
Diluted earnings per share $ 0.07 $ 2.67 $ 2.43
−Removed: Cash dividends declared per share $ 0.92 $ 0.78 $ 0.63
+Added: Cash dividends declared per share (a)
+Added: $ 0.26 $ 0.92 $ 0.78
+Added: (a) There were no dividends declared during the first three quarters of fiscal 2021.
+Added: The Company declared a dividend of $ 0.26 per share in the fourth quarter of fiscal 2021.
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 average price of TJX’s common stock for the related fiscal periods.
15 unchanged sentences
During fiscal 2021, TJX entered into agreements to hedge a portion of its estimated notional diesel requirements for fiscal 2022.
−Removed: The hedge agreements outstanding at February 1, 2020 relate to approximately 50 % of TJX’s estimated notional diesel requirements for fiscal 2021.
+Added: The hedge agreements outstanding at January 30, 2021 relate to approximately 42 % of TJX’s estimated notional diesel requirements for fiscal 2022.
These diesel fuel hedge agreements will settle throughout fiscal 2022 and the first month of fiscal 2023.
3 unchanged sentences
These contracts typically have a term of twelve months or less.
−Removed: The contracts outstanding at February 1, 2020 cover a portion of such actual and anticipated merchandise purchases throughout fiscal 2021.
−Removed: Additionally, TJX’s operations in Europe are subject to foreign currency exposure as a result of their buying function being centralized in the United Kingdom.
+Added: The contracts outstanding at January 30, 2021 cover a portion of such actual and anticipated merchandise purchases throughout fiscal 2022.
+Added: Additionally, TJX’s operations in Europe are subject to foreign currency exposure as a result of their buying function being centralized in the U.K.
All merchandise is purchased centrally in the U.K.
2 unchanged sentences
The inflow of Euros to the central buying entity provides a natural hedge for merchandise purchased from third-party vendors that is denominated in Euros.
−Removed: However, with the growth of TJX’s Euro denominated retail operations, the intercompany billings committed to the Euro denominated operations is generating Euros in excess of those needed to meet merchandise commitments to outside vendors.
+Added: However, with the growth of TJX’s Euro denominated retail operations, the intercompany billings committed to the Euro denominated operations may sometimes generate Euros in excess of those needed to meet merchandise commitments to outside vendors.
TJX calculates this excess Euro exposure each month and enters into forward contracts of approximately 30 days duration to mitigate the exposure.
10 unchanged sentences
The $ 19 million gain subsequent to de-designation is reflected in the income statement offsetting a foreign currency loss of $ 18 million on the declared dividends.
−Removed: The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at February 1, 2020:
+Added: The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at January 30, 2021:
In thousands Pay Receive Blended
3 unchanged sentences
U.S.$ Net Fair
−Removed: February 1, 2020
+Added: January 30, 2021
Fair value hedges:
3 unchanged sentences
U.S.$ 75,102 £ 55,000 0.7323 Prepaid Exp 357 — 357
+Added: £ 200,000 U.S.$ 274,853 1.3743 Prepaid Exp 32 — 32
+Added: € 200,000 U.S.$ 244,699 1.2235 Prepaid Exp / (Accrued Exp) 427 ( 182 ) 245
Economic hedges for which hedge accounting was not elected:
4 unchanged sentences
gal per month
−Removed: N/A (Accrued Exp) — ( 9,927 ) ( 9,927 )
−Removed: Intercompany billings in TJX International, primarily merchandise related:
−Removed: € 58,700 £ 49,848 0.8492 Prepaid Exp 655 — 655
+Added: N/A Prepaid Exp 4,880 — 4,880
Merchandise purchase commitments:
C$ 384,679 U.S.$ 296,000 0.7695 Prepaid Exp / (Accrued Exp) 430 ( 5,627 ) ( 5,197 )
−Removed: C$ 37,051 € 25,200 0.6801 Prepaid Exp / (Accrued Exp) 61 ( 44 ) 17
−Removed: £ 265,653 U.S.$ 341,880 1.2869 Prepaid Exp / (Accrued Exp) 11 ( 9,792 ) ( 9,781 )
−Removed: zł 362,700 £ 72,217 0.1991 Prepaid Exp 1,903 — 1,903
−Removed: A$ 29,400 U.S.$ 20,151 0.6854 Prepaid Exp 435 — 435
+Added: C$ 5,391 € 3,500 0.6492 Prepaid Exp 24 — 24
+Added: £ 203,264 U.S.$ 263,950 1.2986 (Accrued Exp) — ( 15,086 ) ( 15,086 )
+Added: zł 30,000 £ 5,865 0.1955 (Accrued Exp) — ( 29 ) ( 29 )
+Added: A$ 46,985 U.S.$ 35,250 0.7502 Prepaid Exp / (Accrued Exp) 144 ( 837 ) ( 693 )
U.S.$ 99,810 € 83,700 0.8386 Prepaid Exp / (Accrued Exp) 1,986 ( 160 ) 1,826
10 unchanged sentences
zł 45,000 £ 8,930 0.1984 Prepaid Exp $ 270 $ — $ 270
−Removed: € 55,950 £ 49,560 0.8858 Prepaid Exp / (Accrued Exp) 126 ( 140 ) ( 14 )
−Removed: A$ 30,000 U.S.$ 21,483 0.7161 (Accrued Exp) — ( 314 ) ( 314 )
+Added: A$ 50,000 U.S.$ 33,911 0.6782 Prepaid Exp 275 — 275
U.S.$ 72,475 £ 55,000 0.7589 Prepaid Exp 743 — 743
10 unchanged sentences
C$ 609,340 U.S.$ 463,200 0.7602 Prepaid Exp / (Accrued Exp) 2,877 ( 207 ) 2,670
−Removed: C$ 31,455 € 20,700 0.6581 (Accrued Exp) — ( 248 ) ( 248 )
+Added: C$ 37,051 € 25,200 0.6801 Prepaid Exp / (Accrued Exp) 61 ( 44 ) 17
£ 265,653 U.S.$ 341,880 1.2869 Prepaid Exp / (Accrued Exp) 11 ( 9,792 ) ( 9,781 )
−Removed: zł 280,167 £ 57,586 0.2055 Prepaid Exp / (Accrued Exp) 707 ( 86 ) 621
−Removed: A$ 51,043 U.S.$ 36,961 0.7241 Prepaid Exp / (Accrued Exp) 97 ( 213 ) ( 116 )
+Added: zł 362,700 £ 72,217 0.1991 Prepaid Exp 1,903 — 1,903
+Added: A$ 29,400 U.S.$ 20,151 0.6854 Prepaid Exp 435 — 435
U.S.$ 49,849 € 44,635 0.8954 Prepaid Exp / (Accrued Exp) 10 ( 235 ) ( 225 )
3 unchanged sentences
Income by Derivative
−Removed: In thousands Location of Gain (Loss) Recognized in Income by Derivative February 1,
+Added: In thousands Location of Gain (Loss) Recognized in Income by Derivative January 30,
2021 February 1,
8 unchanged sentences
Merchandise purchase commitments Cost of sales, including buying and occupancy costs ( 4,468 ) 10,484 60,407
−Removed: Gain (loss) recognized in income $ 10,288 $ 79,066 $ ( 39,775 )
−Removed: Included in the table above are realized gains of $ 20.2 million in fiscal 2020 and $ 73.8 million in fiscal 2019 and losses of $ 30.5 million in fiscal 2018, all of which were largely offset by gains and losses on the underlying hedged item.
+Added: (Loss) gain recognized in income $ ( 74,184 ) $ 10,288 $ 79,066
+Added: Included in the table above are realized losses of $ 74 million in fiscal 2021 and realized gains of $ 20 million in fiscal 2020 and $ 74 million in fiscal 2019, all of which were largely offset by gains and losses on the underlying hedged item.
Fair Value Measurements
5 unchanged sentences
Fiscal Year Ended
−Removed: In thousands February 1,
+Added: In thousands January 30,
2021 February 1,
1 unchanged sentence
Foreign currency exchange contracts $ 4,149 $ 7,240
+Added: Diesel fuel contracts 4,880 —
Foreign currency exchange contracts $ 21,921 $ 10,278
2 unchanged sentences
Foreign currency exchange contracts and diesel fuel contracts are valued using broker quotations, which include observable market information.
−Removed: TJX’s investments are primarily high-grade commercial paper, institutional money market funds and time deposits with major banks.
TJX does not make 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.
3 unchanged sentences
These inputs are considered to be Level 2.
−Removed: The fair value of long-term debt at February 1, 2020 was $ 2.3 billion compared to a carrying value of $ 2.2 billion.
+Added: The fair value of long-term debt at January 30, 2021 was $ 5.9 billion compared to a carrying value of $ 5.3 billion.
+Added: The fair value of the current portion of long-term debt as of January 30, 2021 was $ 754 million compared to a carrying value of $ 750 million.
+Added: For additional information on the new debt issuances, see Note K—Long-Term Debt and Credit Lines.
The fair value of long-term debt at February 1, 2020 was $ 2.3 billion compared to a carrying value of $ 2.2 billion.
1 unchanged sentence
TJX’s cash equivalents are stated at cost, which approximates fair value due to the short maturities of these instruments.
+Added: Certain assets and liabilities are measured at fair value on a nonrecurring basis, where as the assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances, such as when there is evidence of an impairment.
+Added: For the years ended January 30, 2021, February 1, 2020 and February 2,
+Added: 2019, the Company did not record any material impairments to long-lived assets.
Segment Information
19 unchanged sentences
Fiscal Year Ended
−Removed: In thousands February 1,
+Added: In thousands January 30,
2021 February 1,
6 unchanged sentences
Total net sales $ 32,136,962 $ 41,716,977 $ 38,972,934
−Removed: Segment profit:
+Added: Segment profit (loss):
In the United States:
5 unchanged sentences
General corporate expense 439,037 556,745 545,034
−Removed: Pension settlement charge — 36,122 —
+Added: Loss on early extinguishment of debt 312,233 — —
Interest expense, net 180,734 10,026 8,860
−Removed: Income before provision for income taxes $ 4,406,183 $ 4,173,211 $ 3,856,588
−Removed: (a) Fiscal 2018 amount includes an impairment charge of $ 99.3 million for goodwill and certain long-lived assets of Sierra.
+Added: Pension settlement charge — — 36,122
+Added: Income before income taxes $ 89,263 $ 4,406,183 $ 4,173,211
Business segment information (continued):
Fiscal Year Ended
−Removed: In thousands February 1,
+Added: In thousands January 30,
2021 February 1,
16 unchanged sentences
TJX International 145,756 254,766 272,873
−Removed: Total capital expenditures $ 1,223,116 $ 1,125,139 $ 1,057,617
+Added: Total capital expenditures (c)
+Added: $ 568,021 $ 1,223,116 $ 1,125,139
Depreciation and amortization:
4 unchanged sentences
TJX International 175,824 197,262 180,631
−Removed: Corporate (c)
+Added: Corporate (d)
9,989 5,080 5,261
Total depreciation and amortization $ 870,758 $ 867,303 $ 819,655
−Removed: (a) Corporate identifiable assets consist primarily of cash, receivables, prepaid insurance, prepaid service contracts, operating lease right of use assets, the trust assets in connection with the Executive Savings Plan and the investment in Familia.
−Removed: Consolidated cash, including cash held in our foreign entities, is included with corporate assets for consistency with the reporting of cash for our segments in the U.S.
−Removed: (b) See Leases in Note A—Basis of Presentation and Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements for impact of lease accounting changes.
−Removed: (c) Includes debt discount accretion and debt expense amortization.
+Added: (a) Corporate identifiable assets consist primarily of cash, the trust assets in connection with the Executive Savings Plan and the investment in Familia.
+Added: Consolidated cash, including cash held in the Company’s foreign entities, is included with corporate assets for consistency with the reporting of cash for the Company’s segments in the U.S.
+Added: The increase in Corporate identifiable assets in fiscal 2021 is primarily attributable to the increase in cash.
+Added: (b) On February 3, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) using the modified retrospective method under ASU 2018-11, allowing it to not restate its prior period Consolidated Balance Sheets to reflect the new guidance.
+Added: The adoption of the new lease standard significantly increased assets and current and long term liabilities on the Company’s Consolidated Balance Sheets as it recorded operating lease right of use assets and corresponding operating lease liabilities.
+Added: For additional information, see Note M—Leases.
+Added: (c) Fiscal 2021 reduction in capital spending due to the COVID-19 pandemic.
+Added: (d) Includes debt discount accretion and debt expense amortization.
Stock Incentive Plan
1 unchanged sentence
This plan has been approved by TJX’s shareholders, and all share-based compensation awards are made under this plan.
−Removed: The Stock Incentive Plan, as amended with shareholder approval, has provided for the issuance of up to 695.7 million shares with 40.1 million shares available for future grants as of February 1, 2020.
+Added: The Stock Incentive Plan, as amended with shareholder approval, has provided for the issuance of up to 695.7 million shares with 33.9 million shares available for future grants as of January 30, 2021.
TJX issues shares under the plan from authorized but unissued common stock.
−Removed: All share amounts and per share data presented have been adjusted to reflect the two -for-one stock split completed on November 6, 2018.
Total compensation cost related to share-based compensation was $ 59 million, $ 125 million and $ 104 million in fiscal 2021, 2020 and 2019, respectively.
−Removed: As of February 1, 2020, there was $ 149.4 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plan.
+Added: As of January 30, 2021, there was $ 149 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 2 years.
7 unchanged sentences
Risk-free interest rate 0.28 % 1.65 % 2.88 %
−Removed: Dividend yield 1.6 % 1.4 % 1.5 %
+Added: Dividend yield (a)
+Added: 1.4 % 1.6 % 1.4 %
Expected volatility factor 26.5 % 23.4 % 23.5 %
−Removed: Expected option life in years 4.9 4.9 4.8
+Added: Expected option life 5.0 years 4.9 years 4.9 years
Weighted average fair value of options issued $ 11.29 $ 10.84 $ 11.85
+Added: (a) The reduction in the yield reflects the temporary suspension of dividends due to the COVID-19 pandemic.
+Added: TJX calculated an implied dividend yield of 1.4 % by anticipating dividends to resume.
+Added: The decrease in expected dividend yield reflects the suspension of dividend payments during the first nine months of fiscal 2021.
The risk-free interest 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.
−Removed: We use historical data to estimate option exercises, employee termination behavior and dividend yield within the valuation model.
+Added: The Company uses historical data to estimate option exercises, employee termination behavior and dividend yield within the valuation model.
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 life of the option granted.
3 unchanged sentences
Fiscal Year Ended
−Removed: Shares in thousands February 1,
+Added: Shares in thousands January 30,
2021 February 1,
8 unchanged sentences
The total intrinsic value of options exercised was $ 279 million in fiscal 2021, $ 293 million in fiscal 2020 and $ 284 million in fiscal 2019.
−Removed: The following table summarizes information about stock options outstanding that were expected to vest and stock options outstanding that were exercisable as of February 1, 2020:
+Added: The following table summarizes information about stock options outstanding that were expected to vest and stock options outstanding that were exercisable as of January 30, 2021:
(in thousands)
6 unchanged sentences
(a) Reflects 11.9 million unvested options, net of anticipated forfeitures.
−Removed: TJX granted restricted stock units and performance share units under the Stock Incentive Plan during fiscal 2020.
+Added: TJX grants restricted stock units and performance share units under the Stock Incentive Plan.
Restricted stock units, performance share units, and previously-granted performance-based stock awards are collectively referred to as stock awards.
4 unchanged sentences
Performance share units, performance-based stock awards and related compensation costs recognized are adjusted, as applicable, for performance above or below the target specified in the award.
+Added: During fiscal 2021, TJX determined that performance share unit awards granted during fiscal 2019 and fiscal 2020 were not expected to vest under the original performance vesting conditions.
+Added: As a result, the expense previously recognized for these awards was reversed which decreased fiscal 2021 compensation expense by $ 55 million.
+Added: In January 2021, for certain participants, a discretionary payout with respect to performance share unit awards granted during fiscal 2019 was approved and constituted a modification of the awards during fiscal 2021.
+Added: Under ASC Topic 718 the modification requires that the fair value of these awards be adjusted to reflect the fair value on the date of the modification and resulted in a stock compensation charge of $ 16 million in fiscal 2021.
A summary of the status of our nonvested stock awards and changes during fiscal 2021 is presented below:
−Removed: Shares in thousands Stock Awards Weighted
+Added: (in thousands) Weighted
Nonvested at beginning of year 3,445 $ 44.54
2 unchanged sentences
Forfeited ( 14 ) 48.04
+Added: Modification ( 50 ) 52.17
Nonvested at end of year 2,921 51.36
−Removed: There were 1,001,849 shares of restricted stock unit and performance share unit awards, with a weighted average grant date fair value of $ 53.20 , granted in fiscal 2020, 1,267,802 shares of performance-based stock awards, with a weighted average grant date fair value of $ 41.17 , granted in fiscal 2019, and 1,124,012 shares of performance-based stock awards, with a weighted average grant date fair value of $ 38.36 , granted in fiscal 2018.
−Removed: The fair value of performance-based stock awards that vested was $ 38.4 million in fiscal 2020, $ 30.1 million in fiscal 2019, and $ 35.2 million in fiscal 2018.
+Added: There were 857,216 units with a weighted average grant date fair value of $ 56.24 , granted in fiscal 2021, 1,001,849 units, with a weighted average grant date fair value of $ 53.20 , granted in fiscal 2020, and 1,267,802 units, with a weighted average grant date fair value of $ 41.17 , granted in fiscal 2019.
+Added: The fair value of awards that vested was $ 57 million in fiscal 2021, $ 38 million in fiscal 2020, and $ 30 million in fiscal 2019.
TJX also awards deferred shares to its outside directors under the Stock Incentive Plan.
11 unchanged sentences
Fiscal Year Ended
−Removed: In thousands February 1,
−Removed: 2020 February 2,
+Added: In thousands January 30,
2021 February 1,
+Added: 2020 January 30,
2021 February 1,
3 unchanged sentences
Interest cost 50,210 52,172 3,283 3,740
−Removed: Actuarial (gains)/losses 237,125 ( 38,304 ) 4,682 5,955
−Removed: Settlements — ( 207,369 ) — —
+Added: Actuarial losses 13,758 237,125 8,229 4,682
Benefits paid ( 24,527 ) ( 19,891 ) ( 5,287 ) ( 2,417 )
4 unchanged sentences
Fiscal Year Ended
−Removed: In thousands February 1,
−Removed: 2020 February 2,
+Added: In thousands January 30,
2021 February 1,
+Added: 2020 January 30,
2021 February 1,
3 unchanged sentences
Employer contribution 100 100,000 5,287 2,417
−Removed: Settlements — ( 207,369 ) — —
Benefits paid ( 24,527 ) ( 19,891 ) ( 5,287 ) ( 2,417 )
11 unchanged sentences
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).
−Removed: The combined net accrued liability of $ 74.9 million at February 1, 2020 is reflected on the balance sheet as of that date as a current liability of $ 3.0 million, a long-term liability of $ 101.8 million, and a long-term asset of $ 29.9 million.
−Removed: The combined net accrued liability of $ 72.6 at February 2, 2019 is reflected on the balance sheet as of that date as a current liability of $ 4.7 million, a long-term liability of $ 92.1 million, and a long-term asset of $ 24.2 million.
−Removed: The estimated prior service cost that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in fiscal 2021 for the funded plan is $ 0.4 million.
−Removed: The estimated net actuarial loss that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in fiscal 2021 is $ 21.7 million for the funded plan and $ 4.1 million for the unfunded plan.
+Added: The combined net accrued liability of $ 46 million at January 30, 2021 is reflected on the Consolidate Balance Sheets as of that date as a current liability of $ 7 million, a long-term liability of $ 106 million, and a long-term asset of $ 67 million.
+Added: The combined net accrued liability of $ 75 million at February 1, 2020 is reflected on the Consolidated Balance Sheets as of that date as a current liability of $ 3 million, a long-term liability of $ 102 million, and a long-term asset of $ 30 million.
+Added: The reduction in the actuarial losses included in Accumulated other comprehensive income (loss) for the funded plan for fiscal 2021 was driven by the actual return on assets which exceeded our estimated return by $ 63 million.
TJX determined the assumed discount rate using the BOND:
6 unchanged sentences
2021 February 1,
−Removed: 2019 February 1,
+Added: 2020 January 30,
2021 February 1,
3 unchanged sentences
(a) As of fiscal 2020, the rate of compensation increase for the Unfunded Plan, reflects the rate for participants eligible for the alternative benefit as the participants eligible for the primary benefit no longer accrue benefits under this plan.
−Removed: For fiscal 2019, the table reflects the rate for participants eligible for the primary benefit..
TJX made aggregate cash contributions of $ 5 million in fiscal 2021, $ 102 million in fiscal 2020 and $ 106 million in fiscal 2019 to the funded plan and to fund current benefit and expense payments under the unfunded plan.
TJX’s policy with respect to the funded plan is to fund, at a minimum, the amount required to maintain a funded status of 80 % of the applicable pension liability (the Funding Target pursuant to the Internal Revenue Code section 430) or such other amount as is sufficient to avoid restrictions with respect to the funding of nonqualified plans under the Internal Revenue Code.
−Removed: We do not anticipate any required funding in fiscal 2021 for the funded plan.
−Removed: We anticipate making contributions of $ 3.1 million to provide current benefits coming due under the unfunded plan in fiscal 2021.
+Added: The Company does not anticipate any required funding in fiscal 2022 for the funded plan.
+Added: The Company anticipates making contributions of $ 4 million to provide current benefits coming due under the unfunded plan in fiscal 2022.
The following are the components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) related to our pension plans:
1 unchanged sentence
Fiscal Year Ended
−Removed: In thousands February 1,
−Removed: 2020 February 2,
+Added: In thousands January 30,
2021 February 1,
2020 February 2,
+Added: 2019 January 30,
2021 February 1,
9 unchanged sentences
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
−Removed: Net loss (gain) 71,590 $ 68,770 $ ( 38,293 ) $ 4,682 $ 5,955 $ 4,580
+Added: Net (gain) loss ( 48,838 ) $ 71,590 $ 68,770 $ 8,229 $ 4,682 $ 5,955
Amortization of net (loss) ( 22,351 ) ( 19,055 ) ( 12,250 ) ( 4,616 ) ( 3,124 ) ( 3,409 )
7 unchanged sentences
Expected rate of return on plan assets 5.75 % 6.00 % 6.00 %/ 6.00 %
−Removed: 6.00 % N/A N/A N/A
Rate of compensation increase (a)
4.00 % 4.00 % 4.00 % 4.00 % 6.00 % 6.00 %
−Removed: (a) The rate of compensation increase for participants eligible for the primary benefit under the unfunded plan is 6.00 %.
+Added: (a) For fiscal 2020 and fiscal 2019, the rate of compensation increase for participants eligible for the primary benefit under the unfunded plan is 6.00 %.
The assumed rate of compensation increase for participants eligible for the alternative benefit under the unfunded plan is 4.00 %.
4 unchanged sentences
As a result of the annuity purchase the Company re-measured the funded status of its pension plan as of September 30, 2018.
−Removed: The assumptions for pension expense presented above includes a discount rate of 4.00 % through the measurement date and 4.40 % thereafter.
+Added: The assumptions for pension expense presented above include a discount rate of 4.00 % through the measurement date and 4.40 % thereafter.
The expected rate of return on plan assets is 6.00 % through the measurement date and 6.00 % thereafter.
12 unchanged sentences
2027 through 2031 371,352 37,035
−Removed: The following table presents the fair value hierarchy (See Note F—Fair Value Measurements of Notes to Consolidated Financial Statements) for pension assets measured at fair value on a recurring basis as of February 1, 2020 and February 2, 2019:
−Removed: Funded Plan at February 1, 2020
+Added: The following tables present the fair value hierarchy (See Note G—Fair Value Measurements) for pension assets measured at fair value on a recurring basis as of January 30, 2021 and February 1, 2020:
+Added: Funded Plan at January 30, 2021
In thousands Level 1 Level 2 Total
31 unchanged sentences
Cash equivalents or short-term investments are stated at cost which approximates fair value, and the fair value of common/collective trusts is determined based on net asset value as reported by their fund managers.
−Removed: The following is a summary of TJX’s target allocation guidelines for qualified pension plan assets as of February 1, 2020 along with the actual allocation of qualified pension plan assets as of the valuation date for the fiscal years presented:
−Removed: Target Allocation February 1,
+Added: The following is a summary of TJX’s target allocation guidelines for qualified pension plan assets as of January 30, 2021 along with the actual allocation of qualified pension plan assets as of the valuation date for the fiscal years presented:
+Added: Target Allocation January 30,
2021 February 1,
5 unchanged sentences
Risks are sought to be mitigated through asset diversification and the use of multiple investment managers.
−Removed: Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements and periodic asset/liability studies.
+Added: Investment risk is measured and monitored on an ongoing basis through investment portfolio reviews, annual liability measurements and periodic asset/liability studies.
Other Retirement Benefits
12 unchanged sentences
In addition to the plans described above, TJX also contributes to retirement/deferred savings programs for eligible Associates at certain of its foreign subsidiaries.
−Removed: We contributed $ 20.2 million for these programs in fiscal 2020, $ 15.3 million for these programs in fiscal 2019 and $ 12.6 million in fiscal 2018.
+Added: The Company contributed $ 22 million for these programs in fiscal 2021, $ 20 million for these programs in fiscal 2020 and $ 15 million in fiscal 2019.
Multiemployer Pension Plans
TJX contributes to certain multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover union-represented employees.
−Removed: TJX contributed $ 20.2 million in fiscal 2020, $ 18.5 million in fiscal 2019 and $ 16.3 million in fiscal 2018 to the Legacy Plan of the National Retirement Fund (EIN #13-6130178, plan #1), the Adjustable Plan of the National Retirement Fund (EIN #13-6130178, plan #2), and their respective successor funds described below.
+Added: TJX contributed $ 19 million in fiscal 2021, $ 20 million in fiscal 2020 and $ 19 million in fiscal 2019 to the Legacy Plan of the National Retirement Fund (EIN #13-6130178, plan #1), the Adjustable Plan of the National Retirement Fund (EIN #13-6130178, plan #2), the Legacy Plan of the UNITE HERE Retirement Fund (EIN #82-0994119, plan #1) and the Adjustable Plan of the UNITE HERE Retirement Fund (EIN #82-0994119, plan #2).
TJX was listed in the Form 5500 for the Legacy Plan of the National Retirement Fund and the Adjustable Plan of the National Retirement Fund as providing more than 5 % of the total contributions for the plan year ending December 31, 2019.
−Removed: Based on information available to TJX, effective January 1, 2018 a portion of each of the Legacy Plan of the National Retirement Fund and the Adjustable Plan of the National Retirement Fund was transferred to the Legacy Plan of the UNITE HERE Retirement Fund (EIN #82-0994119, plan #1) and the Adjustable Plan of the UNITE HERE Retirement Fund (EIN #82-0994119, plan #2), respectively, two newly established multiemployer defined benefit pension plans.
In addition, based on information available to TJX, the Pension Protection Act Zone Status for each of the Legacy Plan of the National Retirement Fund and the Legacy Plan of the UNITE HERE Retirement Fund is Critical and rehabilitation plans have been implemented.
4 unchanged sentences
Long-Term Debt and Credit Lines
−Removed: The table below presents long-term debt, exclusive of current installments, as of February 1, 2020 and February 2, 2019.
+Added: The table below presents long-term debt, exclusive of current installments, as of January 30, 2021 and February 1, 2020.
All amounts are net of unamortized debt discounts.
−Removed: In thousands February 1,
+Added: In thousands January 30,
2021 February 1,
General corporate debt:
−Removed: 2.50 % senior unsecured notes, maturing May 15, 2023 (effective interest rate of 2.51 % after reduction of unamortized debt discount of $ 145 and $ 189 in fiscal 2020 and 2019, respectively)
−Removed: $ 499,855 $ 499,811
2.750 % senior unsecured notes, maturing June 15, 2021 (effective interest rate of 2.76 % after reduction of unamortized debt discount of $ 25 and $ 100 in fiscal 2021 and 2020, respectively)
$ 749,975 $ 749,900
+Added: 2.500 % senior unsecured notes, maturing May 15, 2023 (effective interest rate of 2.51 % after reduction of unamortized debt discount of $ 100 and $ 145 in fiscal 2021 and 2020, respectively)
+Added: 499,900 499,855
+Added: 3.500 % senior unsecured notes, maturing April 15, 2025 (effective interest rate of 3.58 % after reduction of unamortized debt discount of $ 4,208 in fiscal 2021)
2.250 % senior unsecured notes, maturing September 15, 2026 (effective interest rate of 2.32 % after reduction of unamortized debt discount of $ 4,165 and $ 4,911 in fiscal 2021 and 2020, respectively)
995,835 995,089
+Added: 3.750 % senior unsecured notes, maturing April 15, 2027 (effective interest rate of 3.76 % after reduction of unamortized debt discount of $ 456 in fiscal 2021)
+Added: 1.150 % senior unsecured notes, maturing May 15, 2028 (effective interest rate of 1.18 % after reduction of unamortized debt discount of $ 939 in fiscal 2021)
+Added: 3.875 % senior unsecured notes, maturing April 15, 2030 (effective interest rate of 3.89 % after reduction of unamortized debt discount of $ 568 in fiscal 2021)
+Added: 1.600 % senior unsecured notes, maturing May 15, 2031 (effective interest rate of 1.61 % after reduction of unamortized debt discount of $ 610 in fiscal 2021)
+Added: 4.500 % senior unsecured notes, maturing April 15, 2050 (effective interest rate of 4.52 % after reduction of unamortized debt discount of $ 2,208 in fiscal 2021)
+Added: Total Debt 6,118,070 2,244,844
+Added: Current maturities of long-term debt, net of debt issuance costs ( 749,684 ) —
Debt issuance cost ( 35,465 ) ( 8,219 )
−Removed: Total long-term debt $ 2,236,625 $ 2,233,616
−Removed: The aggregate maturities of long-term debt, inclusive of current installments at February 1, 2020 are as follows:
+Added: Long-term debt $ 5,332,921 $ 2,236,625
+Added: The aggregate maturities of long-term debt, inclusive of current installments at January 30, 2021 are as follows:
In thousands Long-Term
−Removed: Fiscal Year 2021
+Added: 2026 1,250,000
Later years 3,631,349
1 unchanged sentence
amount representing debt issuance cost ( 35,465 )
+Added: current maturities of long-term debt ( 749,684 )
Aggregate maturities of long-term debt $ 5,332,921
−Removed: At February 1, 2020, TJX had outstanding $ 1.0 billion aggregate principal amount of 2.25 % ten -year notes due September 2026 and $ 500 million aggregate principal amount of 2.50 % ten -year notes due May 2023.
−Removed: TJX entered into a rate-lock agreement to hedge $ 700 million of the 2.25 % notes and $ 250 million of the 2.50 % notes.
+Added: In April 2020, given the rapidly changing environment and level of uncertainty created by the COVID-19 pandemic and the associated impact on future earnings, TJX completed the issuance and sale of (a) $ 1.25 billion aggregate principal amount of 3.500 % notes due 2025, (b) $ 750 million aggregate principal amount of 3.750 % notes due 2027, (c) $ 1.25 billion aggregate principal amount of 3.875 % notes due 2030 and (d) $ 750 million aggregate principal amount of 4.500 % notes due 2050.
+Added: Interest on these notes are payable semi-annually.
+Added: In December 2020, TJX accepted $ 1.12 billion in aggregate principal amount of certain of its notes issued in April 2020 pursuant to cash tender offers as foll ows:
+Added: $ 365 million of the 2050 Notes and $ 754 million of the 2030 Notes.
+Added: TJX paid $ 1.42 billion aggregate consideration in connection with the tender offers (including transaction costs) and recorded a $ 0.3 billion pre-tax loss on the early extinguishment for the accepted notes.
+Added: In November 2020, TJX completed the issuance of (a) $ 500 million aggregate principal amount of 1.150 % notes due 2028 and (b) $ 500 million aggregate principal amount of 1.600 % notes due 2031.
+Added: Cash proceeds, net of discounts and other issuance costs, were $ 990 million.
+Added: Interest on the 2028 and 2031 Notes is payable semi-annually beginning May 2021.
+Added: TJX used the net proceeds from the offering of the 2028 and 2031 Notes to partially fund the purchase of the accepted notes from its December 2020 tender offers.
+Added: At January 30, 2021, TJX had outstanding $ 1 billion aggregate principal amount of 2.250 % ten-year notes due September 2026 and $ 500 million aggregate principal amount of 2.500 % ten-year notes due May 2023.
+Added: TJX entered into a rate-lock agreement to hedge $ 700 million of the 2.250 % notes and $ 250 million of the 2.500 % notes prior to their issuance.
The cost of these agreements are being amortized to interest expense over the term of the notes resulting in an effective fixed rate of 2.36 % for the 2.25 % notes and 2.57 % for the 2.50 % notes.
−Removed: At February 1, 2020, TJX also had outstanding $ 750 million aggregate principal amount of 2.75 % seven -year notes due June 2021.
+Added: At January 30, 2021, TJX also had outstanding $ 750 million aggregate principal amount of 2.750 % seven-year notes due June 2021.
TJX also entered into rate-lock agreements to hedge the underlying treasury rate of all of the 2.750 % notes prior to their issuance.
The agreements were accounted for as cash flow hedges and the pre-tax realized loss of $ 8 million was recorded as a component of other comprehensive income and is being amortized to interest expense over the term of the notes, resulting in an effective fixed interest rate of 2.91 %.
−Removed: TJX has two $ 500 million revolving credit facilities, one which matures in March 2022 and one which matures in May 2024 , both were outstanding as of February 1, 2020 and February 2, 2019.
−Removed: During fiscal 2020, the Company amended the two agreements to reflect the impact of implementing the new lease accounting standard under ASC 842 related to the definition of rental costs used within the debt covenant calculation.
−Removed: For additional information about the implementation of ASC 842, see Leases within Note A—Basis of Presentation and Summary of Accounting Policies of Notes to Consolidated Financial Statements.
−Removed: In addition, the maturity date for one of the revolving credit facilities was extended from March 2020 to May 2024.
−Removed: The terms and covenants under the revolving credit facilities require quarterly payments of 6.0 basis points per annum on the committed amounts for both agreements.
−Removed: This rate is based on the credit ratings of TJX’s long-term debt and will vary with specified changes in the credit ratings.
−Removed: These agreements have no compensating balance requirements and have various covenants.
−Removed: Each of these facilities require TJX to maintain a ratio of funded debt to earnings before interest, taxes, depreciation and amortization and rentals (EBITDAR) of not more than 3.25 to 1.00 on a rolling four-quarter basis.
+Added: At January 30, 2021, TJX had a $ 500 million 364 Day Revolving Credit Facility that matures in August 2021 (the “364-Day Revolving Credit Facility”), a $ 500 million revolving credit facility that matures in March 2022 (the “2022 Revolving Credit Facility”), and a $ 500 million revolving credit facility that matures in May 2024 (the “2024 Revolving Credit Facility”).
+Added: Under these credit facilities, TJX has borrowing capacity of $ 1.5 billion, all of which remains available to the Company.
+Added: I n July 2020, TJX paid off the $ 1 billion it had drawn down on the 2022 Revolving Credit Facility and 2024 Revolving Credit Facility during the first quarter of fiscal 2021.
+Added: The six-month interest rate on these borrowings was 1.757 % through May 15, 2020, and increased to 2.007 % through the payoff date.
+Added: The terms of these revolving credit facilities require quarterly payments on the committed amount and payment of interest on borrowings at rates based on LIBOR or a base rate plus a variable margin, in each case based on the TJX’s long term debt ratings.
+Added: The 2022 Revolving Credit Facility and the 2024 Revolving Credit Facility require usages fees based on total credit extensions under such facilities.
+Added: As of January 30, 2021 and February 1, 2020, there were no amounts outstanding under these facilities.
+Added: Beginning with the fiscal quarter ending May 1, 2021, the terms and covenants under the revolving credit facilities require TJX to maintain a quarterly-tested leverage ratio of funded debt to earnings before interest, taxes, depreciation and amortization and rentals (“EBITDAR”) of not more than 5.00 to 1.00 for the four fiscal quarter period then ended (a “Test Period”), with an incremental 0.5 0 stepdown each Test Period thereafter, until the fourth quarter of fiscal 2022 when the new covenant of 3.50 to 1.00 permanently applies.
+Added: In addition, TJX is required to maintain a minimum liquidity of at least $ 1.5 billion through the period ending April 30, 2021, and a minimum EBITDAR of $ 650 million for the fiscal quarter ending January 30, 2021.
TJX was in compliance with all covenants related to its credit facilities at the end of all periods presented.
−Removed: As of February 1, 2020 and February 2, 2019, and during the years then ended, there were no amounts outstanding under these facilities.
−Removed: On March 20, 2020, the Company drew down $ 1 billion under these facilities.
−Removed: For additional information, see Note Q—Subsequent Event.
−Removed: As of February 1, 2020 and February 2, 2019, TJX Canada had two uncommitted credit lines, a C$ 10 million facility for operating expenses and a C$ 10 million letter of credit facility.
−Removed: As of February 1, 2020 and February 2, 2019, and during the years then ended, there were no amounts outstanding on the Canadian credit line for operating expenses.
−Removed: As of February 1, 2020 and February 2, 2019, our European business at TJX International had an uncommitted credit line of £ 5 million.
−Removed: As of February 1, 2020 and February 2, 2019, and during the years then ended, there were no amounts outstanding on the European credit line.
−Removed: The 2017 Tax Act made broad and complex changes to the U.S.
−Removed: tax code which had a significant impact on our fiscal 2018 and fiscal 2019 tax expense, including reducing the U.S.
−Removed: federal corporate tax rate from 35% to 21%, expanded rules regarding expensing of fixed assets, and required one-time transition tax on certain undistributed earnings of foreign subsidiaries.
−Removed: Other provisions that became effective in Fiscal 2019 impacting income taxes include:
−Removed: an exemption from U.S.
−Removed: tax on dividends of future foreign earnings, expanded limitations on executive compensation, a minimum tax on certain foreign earnings in excess of 10 % of the foreign subsidiaries tangible assets (i.e.
−Removed: global intangible low-taxed income or “GILTI”), and allows a benefit for foreign derived intangible income (“FDII”).
−Removed: In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No.
−Removed: 118, which allows a measurement period, not to exceed one year, to finalize the accounting for the income tax impacts of the 2017 Tax Act.
−Removed: We completed our analysis in the fourth quarter of fiscal 2019 and determined there was no material adjustment to the income tax expense.
−Removed: We have recorded current tax on GILTI relative to fiscal 2020 operations and will continue to account for GILTI as a period cost when incurred.
+Added: As of January 30, 2021 and February 1, 2020, TJX Canada had two uncommitted credit lines, a C$ 10 million facility for operating expenses and a C$ 10 million letter of credit facility.
+Added: As of January 30, 2021 and February 1, 2020, and during the years then ended, there were no amounts outstanding on the Canadian credit line for operating expenses.
+Added: As of January 30, 2021 and February 1, 2020, and during the years then ended, our European business at TJX International had an uncommitted credit line of £ 5 million.
+Added: As of January 30, 2021 and February 1, 2020, there were no amounts outstanding on the European credit line.
For financial reporting purposes, components of income before income taxes are as follows:
Fiscal Year Ended
−Removed: In thousands February 1,
+Added: In thousands January 30,
2021 February 1,
2 unchanged sentences
Foreign ( 553,219 ) 663,956 709,426
−Removed: Income before provision for income taxes $ 4,406,183 $ 4,173,211 $ 3,856,588
−Removed: The provision for income taxes includes the following:
+Added: Income before income taxes $ 89,263 $ 4,406,183 $ 4,173,211
+Added: The (benefit) provision for income taxes includes the following:
Fiscal Year Ended
−Removed: In thousands February 1,
+Added: In thousands January 30,
2021 February 1,
6 unchanged sentences
Foreign ( 109,181 ) ( 7,615 ) 2,274
−Removed: Provision for income taxes $ 1,133,990 $ 1,113,413 $ 1,248,640
−Removed: TJX had net deferred tax (liabilities) assets as follows:
+Added: (Benefit) provision for income taxes $ ( 1,207 ) $ 1,133,990 $ 1,113,413
+Added: TJX had net deferred tax assets (liabilities) as follows:
Fiscal Year Ended
−Removed: In thousands February 1,
+Added: In thousands January 30,
2021 February 1,
1 unchanged sentence
Net operating loss carryforward $ 171,568 $ 57,886
−Removed: Reserves for lease obligations 3,114 2,799
Pension, stock compensation, postretirement and employee benefits 272,872 290,144
−Removed: Operating lease liabilities (a)
+Added: Operating lease liabilities 2,409,392 2,384,486
Accruals and reserves
−Removed: Other 83,707 65,776
+Added: 239,696 125,022
+Added: 14,750 16,349
Total gross deferred tax assets $ 3,108,278 $ 2,873,887
4 unchanged sentences
Capitalized inventory 47,769 46,778
−Removed: Operating lease right of use assets (a)
+Added: Operating lease right of use assets 2,321,733 2,315,690
Tradename / intangibles 17,391 15,705
2 unchanged sentences
Total deferred tax liabilities $ 2,941,569 $ 2,943,839
−Removed: Net deferred tax (liability) $ ( 130,038 ) $ ( 151,724 )
+Added: Net deferred tax asset (liability) $ 90,027 $ ( 130,038 )
Non-current asset $ 127,191 $ 12,132
1 unchanged sentence
Total $ 90,027 $ ( 130,038 )
−Removed: (a) See Leases in Note A—Basis of Presentation and Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements for impact of lease accounting changes.
−Removed: TJX has provided for all applicable state and foreign withholding taxes on all undistributed earnings of its foreign subsidiaries in Canada, Puerto Rico, Italy, India, Hong Kong and Vietnam through February 1, 2020.
−Removed: We have not provided for federal, state, or foreign withholding taxes on the approximately $ 1.5 billion of undistributed earnings related to all other foreign subsidiaries as such earnings are considered to be indefinitely reinvested in the business.
+Added: TJX has provided for all applicable state and foreign withholding taxes on all undistributed earnings of its foreign subsidiaries in Canada, Puerto Rico, Italy, India, Hong Kong and Vietnam through January 30, 2021.
+Added: The Company has not provided for federal, state, or foreign withholding taxes on the approximately $ 1 billion of undistributed earnings related to all other foreign subsidiaries as such earnings are considered to be indefinitely reinvested in the business.
The net amount of unrecognized state and foreign withholding tax liabilities related to the undistributed earnings is not material.
−Removed: As of February 1, 2020 and February 2, 2019, for state income tax purposes, TJX had net operating loss carryforwards of $ 190.3 million and $ 133.2 million respectively, which expire, if unused, in the years 2021 through 2039 .
+Added: As of January 30, 2021 and February 1, 2020, for state income tax purposes, TJX had net operating loss carryforwards of $ 224 million and $ 190 million respectively, which expire, if unused, in the years 2022 through 2041 .
TJX has analyzed the realization of the state net operating loss carryforwards on an individual state basis.
−Removed: For those states where the Company has determined that it is more likely than not that the state net operating loss carryforwards will not be realized, a valuation allowance of $ 13 million has been provided for the deferred tax asset as of February 1, 2020 and $ 10 million as of February 2, 2019.
−Removed: As of February 1, 2020 and February 2, 2019, the Company had available for foreign income tax purposes (related to Australia, Austria and the Netherlands) net operating loss carryforwards of $ 156.4 million and $ 138.8 million respectively, of which $ 22 million will expire, if unused, in fiscal years 2025 through 2028 .
+Added: For those states where the Company has determined that it is more likely than not that the state net operating loss carryforwards will not be realized, a valuation allowance of $ 14 million has been provided for the deferred tax asset as of January 30, 2021 and $ 13 million as of February 1, 2020.
+Added: The Company had available for foreign income tax purposes net operating loss carryforwards of $ 626 million (related to Australia, Austria, Germany, the Netherlands, Poland and the U.K.) as of January 30, 2021, and $ 156 million (related to Australia, Austria and the Netherlands) as of February 1, 2020.
+Added: Of the net operating loss carryforwards as of January 30, 2021, $ 48 million will expire, if unused, in fiscal years 2025 through 2028 .
The remaining loss carryforwards do not expire.
−Removed: For the deferred tax assets associated with the net operating loss carryforwards for which management has determined it is more likely than not that the deferred tax assets will not be realized, TJX had valuation allowances recorded of approximately $ 46.9 million as of February 1, 2020, and approximately $ 41.7 million as of February 2, 2019.
+Added: For the deferred tax assets associated with the net operating loss carryforwards for which management has determined it is more likely than not that the deferred tax assets will not be realized, TJX had valuation allowances recorded of approximately $ 62 million as of January 30, 2021, and approximately $ 47 million as of February 1, 2020.
The difference between the U.S.
7 unchanged sentences
Excess share-based compensation ( 59.4 ) ( 1.3 ) ( 1.2 )
+Added: Tax credits ( 8.9 ) — —
+Added: Nondeductible / nontaxable items ( 3.3 ) — —
Impact of 2017 Tax Act — — 1.5
2 unchanged sentences
TJX’s effective income tax rate decreased for fiscal 2021 as compared to fiscal 2020.
−Removed: The decrease in the fiscal 2020 effective income tax rate is primarily driven by fiscal 2019 including a charge related to the 2017 Tax Act that was not incurred in fiscal 2020 and change in the jurisdictional mix of income.
−Removed: TJX had net unrecognized tax benefits of $ 254.8 million as of February 1, 2020, $ 233.4 million as of February 2, 2019 and $ 57.3 million as of February 3, 2018.
+Added: The decrease in the fiscal 2021 effective income tax rate is primarily driven by the negative impact of the COVID-19 pandemic to the Company’s results and the change in the jurisdictional mix of income and losses.
+Added: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was signed into law, which provides emergency economic assistance for American workers, families and businesses affected by the COVID-19 pandemic.
+Added: The CARES Act does not have a significant impact on our fiscal 2021 tax expense.
+Added: The 2017 Tax Act made broad and complex changes to the U.S.
+Added: tax code which had a significant impact on our fiscal 2018 and fiscal 2019 tax expense, including reducing the U.S.
+Added: federal corporate tax rate from 35% to 21%, expanded rules regarding expensing of fixed assets, and required one-time transition tax on certain undistributed earnings of foreign subsidiaries.
+Added: Other provisions that became effective in Fiscal 2019 impacting income taxes include:
+Added: an exemption from U.S.
+Added: tax on dividends of future foreign earnings, expanded limitations on executive compensation, a minimum tax on certain foreign earnings in excess of 10 % of the foreign subsidiaries tangible assets (i.e.
+Added: global intangible low-taxed income or “GILTI”), and allows a benefit for foreign derived intangible income (“FDII”).
+Added: In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No.
+Added: 118, which allows a measurement period, not to exceed one year, to finalize the accounting for the income tax impacts of the 2017 Tax Act.
+Added: The Company completed our analysis in the fourth quarter of fiscal 2019 and determined there was no material adjustment to the income tax expense.
+Added: The Company has recorded current tax on GILTI relative to fiscal 2020 operations and will continue to account for GILTI as a period cost when incurred.
+Added: TJX had net unrecognized tax benefits of $ 272 million as of January 30, 2021, $ 255 million as of February 1, 2020 and $ 233 million as of February 2, 2019.
A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows:
Fiscal Year Ended
−Removed: In thousands February 1,
+Added: In thousands January 30,
2021 February 1,
3 unchanged sentences
Additions for uncertain tax positions taken in prior years 834 722 177,741
−Removed: Reductions for uncertain tax positions taken in prior years — — ( 587 )
Reductions resulting from lapse of statute of limitations ( 2,352 ) ( 4,022 ) ( 1,388 )
2 unchanged sentences
Included in the gross amount of unrecognized tax benefits are items that will impact future effective tax rates upon recognition.
−Removed: These items amounted to $ 240 million as of February 1, 2020, $ 222 million as of February 2, 2019 and $ 55.8 million as of February 3, 2018.
+Added: These items amounted to $ 250 million as of January 30, 2021, $ 240 million as of February 1, 2020 and $ 222 million as of February 2, 2019.
TJX is subject to U.S.
3 unchanged sentences
TJX’s accounting policy is to classify interest and penalties related to income tax matters as part of income tax expense.
−Removed: The amount of interest and penalties expensed was $ 4.7 million for the year ended February 1, 2020, $ 11.9 million for the year ended February 2, 2019 and $ 1.9 million for the year ended February 3, 2018.
−Removed: The accrued amounts for interest and penalties are $ 27.9 million as of February 1, 2020, $ 23.6 million as of February 2, 2019 and $ 11.9 million as of February 3, 2018.
−Removed: Based on the final resolution of tax examinations, judicial or administrative proceedings, changes in facts or law, expirations of statutes 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 February 1, 2020.
+Added: The amount of interest and penalties expensed was $ 8 million for the year ended January 30, 2021, $ 5 million for the year ended February 1, 2020 and $ 12 million for the year ended February 2, 2019.
+Added: The accrued amounts for interest and penalties are $ 36 million as of January 30, 2021, $ 28 million as of February 1, 2020 and $ 24 million as of February 2, 2019.
+Added: Based on the final resolution of tax examinations, judicial or administrative proceedings, changes in facts or law, expirations of statutes 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, 2021.
During the next twelve months, it is reasonably possible that tax audit resolutions may reduce unrecognized tax benefits by $ 0 to $ 40 million, which would reduce the provision for taxes on earnings.
14 unchanged sentences
Lease expense for lease payments is recognized on a straight-line basis over the lease term.
−Removed: Supplemental balance sheet information related to leases as of February 1, 2020 is as follows:
−Removed: Weighted-average remaining lease term 7.2 years
+Added: Supplemental balance sheet information related to leases is as follows:
+Added: Fiscal Year Ended
+Added: 2021 February 1,
+Added: Weighted-average remaining lease term 6.8 years 7.2 years
Weighted-average discount rate 2.6 % 2.9 %
−Removed: The following table is a summary of the Company’s components of net lease cost for the fiscal year ended February 1, 2020:
−Removed: In thousands Classification February 1,
+Added: The following table is a summary of the Company’s components of net lease cost for the fiscal years ended:
+Added: Fiscal Year Ended
+Added: In thousands Classification January 30,
+Added: 2021 February 1,
Operating lease cost Cost of sales, including buying and occupancy costs $ 1,820,396 $ 1,752,122
1 unchanged sentence
Total lease cost $ 2,983,367 $ 2,978,838
−Removed: Supplemental cash flow information related to leases for the fiscal year ended February 1, 2020 is as follows:
−Removed: In thousands February 1,
+Added: Supplemental cash flow information related to leases is as follows:
+Added: Fiscal Year Ended
+Added: In thousands January 30,
+Added: 2021 February 1,
Cash paid for amounts included in the measurement of lease liabilities:
1 unchanged sentence
Lease liabilities arising from obtaining right of use assets $ 1,380,402 $ 1,786,212
−Removed: The following table summarizes the maturity of lease liabilities under operating leases as of February 1, 2020:
−Removed: In thousands February 1,
−Removed: Fiscal year 2021 $ 1,781,208
+Added: During fiscal 2021, the Company negotiated rent deferrals (primarily for second quarter lease payments) for a significant number of our stores, with repayment at later dates, primarily in fiscal 2022.
+Added: See Note B—Impact of the COVID-19 Pandemic for additional information.
+Added: The following table summarizes the maturity of lease liabilities under operating leases as of January 30, 2021:
+Added: In thousands January 30,
2022 $ 2,049,652
2 unchanged sentences
2025 1,331,267
+Added: 2026 1,087,555
Later years 2,507,701
5 unchanged sentences
(c) Total lease liabilities are broken out on the Consolidated Balance Sheets between Current portion of operating lease liabilities and Long-term operating lease liabilities.
−Removed: The following table represents the gross minimum rental commitments under noncancelable leases as of the fiscal year ended February 2, 2019, prior to our adoption of Topic 842:
−Removed: In thousands February 2, 2019
−Removed: Fiscal year 2020
−Removed: 2021 1,603,378
−Removed: 2022 1,441,444
−Removed: 2023 1,253,420
−Removed: 2024 1,042,184
−Removed: Later years 2,774,845
−Removed: Total lease payments
Accrued Expenses and Other Liabilities, Current and Long Term
1 unchanged sentence
Fiscal Year Ended
−Removed: In thousands February 1,
+Added: In thousands January 30,
2021 February 1,
Employee compensation and benefits, current
+Added: $ 946,229 $ 819,368
Merchandise credits and gift certificates 576,187 500,844
−Removed: Occupancy costs, including rent, utilities and real estate taxes 283,383 243,192
Dividends payable 315,604 281,703
+Added: Occupancy costs, including rent, utilities and real estate taxes
+Added: 314,850 283,383
Sales tax collections and V.A.T.
2 unchanged sentences
All other current liabilities
+Added: 1,114,070 836,056
Total accrued expenses and other current liabilities $ 3,471,459 $ 3,041,774
−Removed: All other current liabilities include accruals for expense payables, insurance, customer rewards liability, reserve for sales returns, reserve for taxes, advertising, fair value of derivatives, interest and other items, each of which is individually less than 5 % of current liabilities.
+Added: All other current liabilities include accruals for insurance, expense payables, customer rewards liability, reserve for sales returns, reserve for taxes, interest, advertising, fair value of derivatives and other items, each of which is individually less than 5 % of current liabilities.
The major components of other long-term liabilities are as follows:
Fiscal Year Ended
−Removed: In thousands February 1,
+Added: In thousands January 30,
2021 February 1,
2 unchanged sentences
Asset retirement obligation 58,385 52,214
−Removed: Accrued rent (a)
−Removed: Build-to-suit lease obligations (b)
−Removed: Landlord allowances (a)
All other long-term liabilities 61,752 28,743
Total other long-term liabilities $ 1,063,902 $ 851,116
−Removed: (a) Accrued rent (straight line rent) and landlord allowances were reclassified to Operating lease right of use assets upon adoption of the new accounting standard in fiscal 2020.
−Removed: See Note A—Basis of Presentation and Summary of Accounting Policies for additional information.
−Removed: (b) Build-to-suit lease obligations were de-recognized under the new lease accounting standard in fiscal 2020.
−Removed: See Note A—Basis of Presentation and Summary of Accounting Policies for additional information .
Contingent Obligations, Contingencies, and Commitments
1 unchanged sentence
TJX has contingent obligations on leases, for which it was a lessee or guarantor, which were assigned to third parties without TJX being released by the landlords.
−Removed: Over many years, TJX has assigned numerous leases that it had originally leased or guaranteed to a significant number of third parties.
−Removed: With the exception of leases of former businesses for which TJX has reserved, the Company has rarely had a claim with respect to assigned leases, and accordingly, the Company does not expect that such leases will have a material adverse impact on our financial condition, results of operations or cash flows.
−Removed: TJX does not generally have sufficient information about these leases to estimate our potential contingent obligations under them, which could be triggered in the event that one or more of the current tenants does not fulfill their obligations related to one or more of these leases.
−Removed: TJX may also be contingently liable on up to eight leases of former TJX businesses, for which we believe the likelihood of future liability to TJX is remote, and has contingent obligations in connection with certain assigned or sublet properties that TJX is able to estimate.
−Removed: We estimate that the undiscounted obligations of (i) leases of former operations not included in our reserve for former operations and (ii) properties of our former operations if the subtenants or assignees do not fulfill their obligations, are approximately $ 28.0 million as of February 1, 2020.
−Removed: We believe that most or all of these contingent obligations will not revert to us and, to the extent they do, will be resolved for substantially less due to mitigating factors including our expectation to further sublet.
+Added: The Company has had numerous leases from its former operations where its guarantee required it to satisfy some of these lease obligations and TJX established appropriate reserves.
+Added: The Company may be contingently liable on up to eight leases of former TJX businesses, for which the Company believes the likelihood of future liability to TJX is remote.
+Added: The Company may also be contingently liable for assignments and subleases if the assignees or subtenants do not fulfill their obligations.
+Added: TJX estimates the undiscounted value of these contingent obligations as of January 30, 2021 to be approximately $ 11 million.
+Added: TJX believes that most or all of these contingent obligations will not revert to the Company and, to the extent they do, may be resolved for substantially less due to mitigating factors including TJX's ability to potentially further sublet.
TJX is a party to various agreements under which it may be obligated to indemnify the other party with respect to certain losses related to matters including title to assets sold, specified environmental matters or certain income taxes.
−Removed: These obligations are often limited in and amount.
+Added: These obligations are often limited in time and amount.
There are no amounts reflected in our Consolidated Balance Sheets with respect to these contingent obligations.
1 unchanged sentence
TJX is subject to certain legal proceedings, lawsuits, disputes and claims that arise from time to time in the ordinary course of our business.
−Removed: In addition, TJX is a defendant in several lawsuits filed in federal and state courts brought as putative class or collective actions on behalf of various groups of current and former salaried and hourly associates in the U.S.
+Added: In addition, TJX is a defendant in several lawsuits filed in federal and state courts brought as putative class, collective, and/or representative actions on behalf of various groups of current and former salaried and hourly associates in the U.S.
The lawsuits allege violations of the Fair Labor Standards Act and of state wage and hour and other labor statutes.
2 unchanged sentences
Letters of Credit
−Removed: TJX had outstanding letters of credit totaling $ 29.6 million as of February 1, 2020 and $ 41.9 million as of February 2, 2019.
+Added: TJX had outstanding letters of credit totaling $ 28 million as of January 30, 2021 and $ 30 million as of February 1, 2020.
Letters of credit are issued by TJX primarily for the purchase of inventory.
2 unchanged sentences
Fiscal Year Ended
−Removed: In thousands February 1,
+Added: In thousands January 30,
2021 February 1,
1 unchanged sentence
Cash paid for:
−Removed: Interest on debt $ 56,322 $ 64,007 $ 64,308
−Removed: Income taxes 1,280,680 1,147,511 1,289,964
−Removed: Non-cash investing and financing activity:
−Removed: Build-to-suit construction in progress (a)
+Added: Interest on debt (a)
$ 153,045 $ 56,322 $ 64,007
−Removed: Build-to-suit lease obligation (a)
+Added: Income taxes (b)
146,008 1,280,680 1,147,511
+Added: Non-cash investing and financing activity:
Dividends payable $ 33,714 $ 40,226 $ 42,943
Property additions ( 36,251 ) 6,189 28,836
−Removed: (a) The assets and liabilities related to non-TJX owned properties that had previously existed under build-to-suit accounting have been de-recognized in fiscal 2020 upon adoption of the new lease accounting standard.
+Added: Build-to-suit construction in progress (c)
+Added: — — ( 40,911 )
+Added: Build-to-suit lease obligation (c)
+Added: (a) Increased interest is due to the issuance of additional debt due to the COVID-19 pandemic.
+Added: (b) Decreased income taxes is primarily due to lower profits due to the COVID-19 pandemic and the change in the jurisdictional mix of profits and losses.
+Added: (c) The assets and liabilities related to non-TJX owned properties that had previously existed under build-to-suit accounting have been de-recognized in fiscal 2020 upon adoption of the new lease accounting standard.
Selected Quarterly Financial Data (Unaudited)
−Removed: Presented below is selected quarterly consolidated financial data for fiscal 2020 and fiscal 2019 which was prepared on the same basis as the audited consolidated financial statements and includes all adjustments necessary to present fairly, in all material respects, the information set forth therein on a consistent basis.
+Added: Presented below is selected quarterly consolidated financial data for fiscal 2021 and fiscal 2020 which was prepared on the same basis as the audited consolidated financial statements and includes all adjustments necessary to state fairly, in all material respects, the information set forth therein on a consistent basis.
Amounts in thousands except per share amounts First
−Removed: Quarter Second
−Removed: Quarter Third
−Removed: Fiscal Year Ended February 1, 2020
+Added: Fiscal Year Ended January 30, 2021
Net sales $ 4,408,888 $ 6,667,575 $ 10,117,289 $ 10,943,210
−Removed: Gross earnings (a)
+Added: Gross earnings (b)
( 5,577 ) 1,493,085 3,055,004 3,060,635
−Removed: Net income 700,178 758,962 828,263 984,790
−Removed: Basic earnings per share
+Added: Net income (c)
( 887,489 ) ( 214,220 ) 866,656 325,523
−Removed: Diluted earnings per share
+Added: Basic earnings per share (d)
( 0.74 ) ( 0.18 ) 0.72 0.27
+Added: Diluted earnings per share (d)
+Added: ( 0.74 ) ( 0.18 ) 0.71 0.27
Fiscal Year Ended February 1, 2020
Net sales $ 9,277,585 $ 9,781,596 $ 10,451,334 $ 12,206,462
−Removed: Gross earnings (a)
+Added: Gross earnings (b)
2,639,700 2,755,539 3,011,301 3,464,657
4 unchanged sentences
0.57 0.62 0.68 0.81
−Removed: (a) Gross earnings equal net sales less cost of sales, including buying and occupancy costs.
−Removed: (b) The third quarter of fiscal 2019 includes a $ 36.1 million pension settlement charge.
−Removed: Subsequent Event
−Removed: In December 2019, COVID-19 emerged and has subsequently spread worldwide.
−Removed: The World Health Organization has declared COVID-19 a pandemic resulting in federal, state and local governments and private entities mandating various restrictions, including travel restrictions, restrictions on public gatherings, stay at home orders and advisories and quarantining of people who may have been exposed to the virus.
−Removed: After close monitoring and responses and guidance from federal, state and local governments, in an effort to mitigate the spread of COVID-19, effective March 19, 2020, the Company closed all of its stores for at least two weeks and has temporarily closed its online businesses, its distribution centers and its offices with Associates working remotely where possible.
−Removed: The Company continues to monitor developments, including government requirements and recommendations at the national, state, and local level to evaluate possible extensions to all or part of such closures.
−Removed: In addition, we have taken several steps to further strengthen our financial position and balance sheet, and maintain financial liquidity and flexibility, including, suspending our share repurchase program, reviewing operating expenses, evaluating merchandise purchases, reducing capital expenditures and drawing down $ 1.0 billion on our revolving credit facilities.
−Removed: As of March 20, 2020, the Company had $ 1.0 billion outstanding under these facilities.
−Removed: In addition the Company does not intend to declare a dividend for the first quarter of fiscal 2021, and we continue to evaluate our dividend program in the near term.
−Removed: As the COVID-19 pandemic is complex and rapidly evolving, the Company's plans as described above may change.
−Removed: At this point, we cannot reasonably estimate the duration and severity of this pandemic, which could have a material adverse impact on our business, results of operations, financial position and cash flows.
+Added: (a) Fiscal 2021 quarters reflect the impact of the COVID-19 pandemic.
+Added: (b) Gross earnings equal net sales less cost of sales, including buying and occupancy costs.
+Added: (c) The fourth quarter of fiscal 2021 includes a $ 0.3 billion early extinguishment of debt charge.
+Added: (d) As a result of the net loss for the first and second quarters of fiscal 2021, basic and diluted earnings per share were the same.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.