What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-11-30 compared with 2021-08-27 · 134 added, 140 removed, 507 unchanged (35% of the section changed)

3 unchanged sentences

IN THOUSANDS EXCEPT PER SHARE AMOUNTS

Thirteen Weeks Ended Twenty-Six Weeks Ended

2021 August 1,

2020 July 31,

2021 August 1,

Thirteen Weeks Ended Thirty-Nine Weeks Ended

2021 October 31,

2020 October 30,

2021 October 31,

Net sales $ 12,531,890 $ 10,117,289 $ 34,695,614 $ 21,193,752

17 unchanged sentences

Thirteen Weeks Ended

2021 August 1,

Net income (loss) $ 785,681 $ ( 214,220 )

Additions to other comprehensive income:

Foreign currency translation adjustments, net of related tax benefit of $ 1,140 in fiscal 2022 and tax provisions of $ 5,462 in fiscal 2021

2021 October 31,

Net income $ 1,023,000 $ 866,656

Additions to other comprehensive income (loss):

Foreign currency translation adjustments, net of related tax provision of $ 976 in fiscal 2022 and tax provisions of $ 993 in fiscal 2021

( 6,688 ) ( 25,568 )

2 unchanged sentences

Amortization of loss on cash flow hedge, net of related tax provision of $ 75 in fiscal 2021

Other comprehensive income, net of tax 3,492 74,383

Total comprehensive income (loss) $ 789,173 $ ( 139,837 )

Twenty-Six Weeks Ended

2021 August 1,

Other comprehensive (loss), net of tax ( 3,515 ) ( 19,920 )

Total comprehensive income $ 1,019,485 $ 846,736

Thirty-Nine Weeks Ended

2021 October 31,

Net income (loss) $ 2,342,611 $ ( 235,053 )

4 unchanged sentences

Amortization of prior service cost and deferred gains/losses, net of related tax provisions of $ 3,802 in fiscal 2022 and $ 5,473 in fiscal 2021

10,442 15,034

Amortization of loss on cash flow hedge, net of related tax provision of $ 603 in fiscal 2022 and $ 227 in fiscal 2021

6 unchanged sentences

2021 January 30,

2021 August 1,

2021 October 31,

Current assets:

36 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

Twenty-Six Weeks Ended

2021 August 1,

Thirty-Nine Weeks Ended

2021 October 31,

Cash flows from operating activities:

8 unchanged sentences

(Increase) in accounts receivable ( 155,554 ) ( 76,604 )

(Increase) decrease in merchandise inventories ( 733,035 ) 1,111,612

(Increase) in merchandise inventories ( 2,287,326 ) ( 134,877 )

(Increase) in income taxes recoverable ( 50,428 ) ( 138,679 )

Decrease (increase) in prepaid expenses and other current assets 20,779 ( 53,702 )

(Decrease) in accounts payable ( 425,274 ) ( 240,356 )

Increase in accounts payable 611,934 3,464,266

Increase in accrued expenses and other liabilities 557,065 550,261

(Decrease) in income taxes payable ( 34,819 ) ( 25,254 )

Increase in income taxes payable 56,426 20,131

(Decrease) increase in net operating lease liabilities ( 105,494 ) 226,909

28 unchanged sentences

Earnings Total

Balance, May 1, 2021 1,206,387 $ 1,206,387 $ 321,475 $ ( 581,184 ) $ 5,192,536 $ 6,139,214

Balance, July 31, 2021 1,202,981 $ 1,202,981 $ 117,603 $ ( 577,692 ) $ 5,663,492 $ 6,406,384

Net income — — — — 1,023,000 1,023,000

4 unchanged sentences

Common stock repurchased ( 11,690 ) ( 11,690 ) ( 240,967 ) — ( 543,643 ) ( 796,300 )

Balance, July 31, 2021 1,202,981 $ 1,202,981 $ 117,603 $ ( 577,692 ) $ 5,663,492 $ 6,406,384

Balance, October 30, 2021 1,194,261 $ 1,194,261 $ — $ ( 581,207 ) $ 5,831,720 $ 6,444,774

Thirteen Weeks Ended

4 unchanged sentences

Earnings Total

Balance, May 2, 2020 1,197,877 $ 1,197,877 $ 8,104 $ ( 797,324 ) $ 4,330,561 $ 4,739,218

Net (loss) — — — — ( 214,220 ) ( 214,220 )

Other comprehensive income, net of tax — — — 74,383 — 74,383

Balance, August 1, 2020 1,199,061 $ 1,199,061 $ 68,532 $ ( 722,941 ) $ 4,115,917 $ 4,660,569

Net income — — — — 866,656 866,656

Other comprehensive (loss), net of tax — — — ( 19,920 ) — ( 19,920 )

Recognition of share-based compensation — — 31,262 — — 31,262

Issuance of common stock under Stock Incentive Plan, net of shares used to pay tax withholdings 1,570 1,570 26,619 — — 28,189

Balance, August 1, 2020 1,199,061 $ 1,199,061 $ 68,532 $ ( 722,941 ) $ 4,115,917 $ 4,660,569

Balance, October 31, 2020 1,200,631 $ 1,200,631 $ 126,413 $ ( 742,861 ) $ 4,982,573 $ 5,566,756

The accompanying notes are an integral part of the unaudited consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Twenty-Six Weeks Ended

Thirty-Nine Weeks Ended

Shares Par Value

10 unchanged sentences

Common stock repurchased ( 16,201 ) ( 16,201 ) ( 533,555 ) — ( 543,643 ) ( 1,093,399 )

Balance, July 31, 2021 1,202,981 $ 1,202,981 $ 117,603 $ ( 577,692 ) $ 5,663,492 $ 6,406,384

Twenty-Six Weeks Ended

Balance, October 30, 2021 1,194,261 $ 1,194,261 $ — $ ( 581,207 ) $ 5,831,720 $ 6,444,774

Thirty-Nine Weeks Ended

Shares Par Value

9 unchanged sentences

Common stock repurchased ( 3,387 ) ( 3,387 ) ( 25,715 ) — ( 172,398 ) ( 201,500 )

Balance, August 1, 2020 1,199,061 $ 1,199,061 $ 68,532 $ ( 722,941 ) $ 4,115,917 $ 4,660,569

Balance, October 31, 2020 1,200,631 $ 1,200,631 $ 126,413 $ ( 742,861 ) $ 4,982,573 $ 5,566,756

The accompanying notes are an integral part of the unaudited consolidated financial statements.

14 unchanged sentences

The Company has been, and may continue to be, impacted by the COVID-19 pandemic.

In response to the pandemic, primarily during the first quarter of fiscal 2021, the Company took several steps to strengthen its financial position and balance sheet and to maintain financial liquidity and flexibility.

The COVID-19 pandemic is complex and rapidly evolving and the severity and duration of the pandemic is still unknown.

Additionally, its resurgence or the emergence of new variants has caused and may continue to cause intermittent or prolonged periods of temporary store closures, and stringent occupancy restrictions while stores are open, and could elicit further actions and recommendations from governments and public health authorities that could impact our operations.

Additionally, COVID-19’s resurgence or the emergence of new variants has caused and may continue to cause intermittent or prolonged periods of temporary store closures, and stringent occupancy restrictions while stores are open, and could elicit further actions and recommendations from governments and public health authorities that could impact our operations.

In the first quarter of fiscal 2021, the Company temporarily closed all of its stores, distribution centers and offices, and online businesses until the second quarter of fiscal 2021.

During the first six months of fiscal 2022, while the Company’s stores in the United States remained open for the entire period, the Company had temporary store closures, in Europe, Canada and Australia.

During the first half of fiscal 2022, while the Company's stores in the United States remained open for the entire period, the Company had temporary store closures in Europe, Canada, and Australia, and during the third quarter of fiscal 2022 continued to have temporary store closures in Australia.

The Company continues to monitor developments, including government requirements and recommendations at the national, state, and local level that could result in possible additional impacts to our operations.

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.

The Company cannot reasonably estimate with certainty 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.

TJX’s fiscal year ends on the Saturday nearest to the last day of January of each year.

11 unchanged sentences

The following table presents deferred gift card revenue activity:

In thousands July 31,

2021 August 1,

In thousands October 30,

2021 October 31,

Balance, beginning of year $ 576,187 $ 500,844

3 unchanged sentences

Balance, end of period $ 546,011 $ 465,532

TJX recognized $ 436.3 million in gift card revenue for the three months ended July 31, 2021 and $ 198.7 million in gift card revenue for the three months ended August 1, 2020.

The increase in both deferred revenue and revenue recognized versus the prior year reflects the impact of the temporary store closures in the first half of fiscal 2021 due to the COVID-19 pandemic.

TJX recognized $ 400 million in gift card revenue for the three months ended October 30, 2021 and $ 307 million in gift card revenue for the three months ended October 31, 2020.

The increase in both deferred revenue and revenue recognized versus the prior year reflects the impact of lower customer traffic for the three months ended October 31, 2020 and temporary store and e-commerce closures due to the COVID-19 pandemic for the nine months ended October 31, 2020.

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.

Supplemental cash flow information related to leases for the twenty-six weeks ended July 31, 2021 and August 1, 2020 is as follows:

Twenty-Six Weeks Ended

In thousands July 31,

2021 August 1,

Supplemental cash flow information related to leases for the thirty-nine weeks ended October 30, 2021 and October 31, 2020 is as follows:

Thirty-Nine Weeks Ended

In thousands October 30,

2021 October 31,

Operating cash flows paid for operating leases $ 1,571,815 $ 1,179,618

4 unchanged sentences

Updates to the FASB Accounting Standards Codification are communicated through issuance of an Accounting Standards Update (“ASU”).

The Company has reviewed the new guidance and has determined that they will either not apply to TJX or they are not expected to be material to its Consolidated Financial Statements upon adoption and therefore they are not disclosed.

The Company has reviewed the new guidance and has determined that it will either not apply to TJX or is not expected to be material to its Consolidated Financial Statements upon adoption and therefore they are not disclosed.

Property at Cost

The following table presents the components of property at cost:

In thousands July 31,

In thousands October 30,

2021 January 30,

2021 August 1,

2021 October 31,

Land and buildings

7 unchanged sentences

Net property at cost $ 5,165,250 $ 5,036,096 $ 5,004,774

Depreciation expense was $ 213 million for the three months ended July 31, 2021 and $ 217 million for the three months ended August 1, 2020.

Depreciation expense was $ 425 million for the six months ended July 31, 2021 and $ 434 million for the six months ended August 1, 2020.

Non-cash investing activities include the change in accrued capital additions of $ 37 million and $( 92 ) million as of the periods ended July 31, 2021 and August 1, 2020, respectively.

Depreciation expense was $ 215 million for the three months ended October 30, 2021 and $ 216 million for the three months ended October 31, 2020.

Depreciation expense was $ 640 million for the nine months ended October 30, 2021 and $ 649 million for the nine months ended October 31, 2020.

Non-cash investing activities in the cash flows include the change in accrued capital additions of $ 59 million and $( 89 ) million as of the periods ended October 30, 2021 and October 31, 2020, respectively.

Accumulated Other Comprehensive (Loss) Income

Amounts included in accumulated other comprehensive loss are recorded net of taxes.

The following table details the changes in accumulated other comprehensive loss for the twelve months ended January 30, 2021 and the six months ended July 31, 2021:

The following table details the changes in accumulated other comprehensive loss for the twelve months ended January 30, 2021 and the nine months ended October 30, 2021:

In thousands Foreign

24 unchanged sentences

— 10,442 — 10,442

Balance, July 31, 2021

Balance, October 30, 2021

$ ( 426,847 ) $ ( 154,360 ) $ — $ ( 581,207 )

2 unchanged sentences

During the second quarter of fiscal 2022, the Company lifted the temporary suspension of its previously authorized stock repurchase programs.

TJX repurchased and retired 4.6 million shares of its common stock at a cost of approximately $ 300 million during the quarter and six months ended July 31, 2021, on a “trade date” basis.

TJX repurchased and retired 11.7 million shares of its common stock at a cost of approximately $ 800 million during the quarter ended October 30, 2021, on a “trade date” basis.

During the nine months ended October 30, 2021, TJX repurchased and retired 16.3 million shares of its common stock at a cost of approximately $ 1.1 billion, on a “trade date” basis.

Prior to the suspension of the Company’s share repurchase program, during the first quarter of fiscal 2021, TJX repurchased and retired 3.2 million shares of its common stock at a cost of $ 190 million on a “trade date” basis, and no shares were repurchased during the second quarter of fiscal 2021 through the first quarter of fiscal 2022.

TJX reflects stock repurchases in its financial statements on a “settlement date” or cash basis.

TJX had cash expenditures under repurchase programs of $ 297 million for the six months ended July 31, 2021 and $ 201 million for the six months ended August 1, 2020.

TJX had cash expenditures under repurchase programs of $ 1.1 billion for the nine months ended October 30, 2021 and $ 201 million for the nine months ended October 31, 2020.

These expenditures were funded by cash generated from operations.

1 unchanged sentence

Also, in February 2019, TJX announced that its Board of Directors had approved a stock repurchase program that authorized the repurchase of up to $ 1.5 billion of TJX common stock from time to time.

As of July 31, 2021, TJX had approximately $ 2.7 billion available under these previously announced stock repurchase programs.

As of October 30, 2021, TJX had approximately $ 1.9 billion available under these previously announced stock repurchase programs.

All shares repurchased under the stock repurchase programs have been retired.

1 unchanged sentence

The following table presents the calculation of basic and diluted earnings (loss) per share for net income (loss):

Thirteen Weeks Ended Twenty-Six Weeks Ended

Amounts in thousands, expect per share amounts July 31,

2021 August 1,

2020 July 31,

2021 August 1,

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Amounts in thousands, expect per share amounts October 30,

2021 October 31,

2020 October 30,

2021 October 31,

Basic earnings (loss) per share:

1 unchanged sentence

$ 1,023,000 $ 866,656 $ 2,342,611 $ ( 235,053 )

Weighted average common shares outstanding for basic earnings (loss) per share calculation

Weighted average common shares outstanding for basic earnings (loss) per share calculations

1,200,661 1,199,951 1,203,718 1,198,798

7 unchanged sentences

Assumed exercise / vesting of stock options and awards 15,029 14,244 15,520 —

Weighted average common shares outstanding for diluted earnings (loss) per share calculation

Weighted average common shares outstanding for diluted earnings (loss) per share calculations

1,215,690 1,214,195 1,219,238 1,198,798

4 unchanged sentences

Such options are excluded because they would have an antidilutive effect.

There were no such options excluded for the thirteen weeks and twenty-six weeks ended July 31, 2021.

For the thirteen weeks and twenty-six weeks ended August 1, 2020, as a result of the net losses, all options were antidilutive and therefore have been excluded from the calculation.

The Board of Directors declared a quarterly dividend of $ 0.26 per share in the second quarter of fiscal 2022.

There were 5.3 million such options excluded for the thirteen weeks and thirty-nine weeks ended October 30, 2021.

There were 17.7 million such options excluded for the thirteen weeks ended October 31, 2020.

For the thirty-nine weeks ended October 31, 2020, as a result of the net losses, all options were antidilutive and therefore have been excluded from the diluted earnings per share calculation.

Financial Instruments

11 unchanged sentences

The hedge agreements are designed to mitigate the volatility of diesel fuel pricing (and the resulting per mile surcharges payable by TJX) by setting a fixed price per gallon for the period being hedged.

During fiscal 2021, TJX entered into agreements to hedge a portion of its estimated notional diesel requirements for fiscal 2022, and during the first six months of fiscal 2022, TJX entered into agreements to hedge a portion of its estimated notional diesel requirements for the first six months of fiscal 2023.

The hedge agreements outstanding at July 31, 2021 relate to approximately 47 % of TJX’s estimated notional diesel requirements for the remainder of fiscal 2022 and approximately 50 % of TJX’s estimated notional diesel requirements for the first six months of fiscal 2023.

These diesel fuel hedge agreements will settle throughout the remainder of fiscal 2022 and throughout the first seven months of fiscal 2023.

During fiscal 2021, TJX entered into agreements to hedge a portion of its estimated notional diesel requirements for fiscal 2022, and during the first nine months of fiscal 2022, TJX entered into agreements to hedge a portion of its estimated notional diesel requirements for the first nine months of fiscal 2023.

The hedge agreements outstanding at October 30, 2021 relate to approximately 48 % of TJX’s estimated notional diesel requirements for the remainder of fiscal 2022 and approximately 50 % of TJX’s estimated notional diesel requirements for the first nine months of fiscal 2023.

These diesel fuel hedge agreements will settle throughout the remainder of fiscal 2022 and throughout the first ten months of fiscal 2023.

TJX elected not to apply hedge accounting to these contracts.

1 unchanged sentence

TJX enters into forward foreign currency exchange contracts to obtain economic hedges on portions of merchandise purchases made and anticipated to be made by the Company’s operations in currencies other than their respective functional currencies.

The contracts outstanding at July 31, 2021 cover the merchandise purchases the Company is committed to over the next several months.

The contracts outstanding at October 30, 2021 cover the merchandise purchases the Company is committed to over the next several months.

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.

7 unchanged sentences

Upon settlement, the realized gains and losses on these contracts are offset by the realized gains and losses of the underlying item in selling, general and administrative expenses.

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at July 31, 2021:

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at October 30, 2021:

In thousands Pay Receive Blended

6 unchanged sentences

zł 45,000 £ 8,846 0.1966 Prepaid Exp $ 780 $ — $ 780

A$ 110,000 U.S.$ 84,198 0.7654 Prepaid Exp 3,100 — 3,100

€ 60,000 £ 50,815 0.8469 (Accrued Exp) — ( 340 ) ( 340 )

A$ 170,000 U.S.$ 127,603 0.7506 Prepaid Exp / (Accrued Exp) 1,866 ( 2,075 ) ( 209 )

U.S.$ 75,102 £ 55,000 0.7323 Prepaid Exp 54 — 54

£ 250,000 U.S.$ 346,344 1.3854 Prepaid Exp / (Accrued Exp) 426 ( 1,504 ) ( 1,078 )

€ 170,000 U.S.$ 207,623 1.2213 Prepaid Exp / (Accrued Exp) 5,169 ( 143 ) 5,026

C$ 150,000 U.S.$ 124,009 0.8267 Prepaid Exp 3,698 — 3,698

€ 200,000 U.S.$ 239,776 1.1989 Prepaid Exp 6,957 — 6,957

Economic hedges for which hedge accounting was not elected:

6 unchanged sentences

Intercompany billings in TJX International, primarily merchandise related:

€ 98,000 £ 84,053 0.8577 Prepaid Exp 343 — 343

€ 46,000 £ 39,057 0.8491 (Accrued Exp) — ( 28 ) ( 28 )

Merchandise purchase commitments:

C$ 608,976 U.S.$ 488,000 0.8013 Prepaid Exp / (Accrued Exp) 1,566 ( 5,909 ) ( 4,343 )

C$ 34,928 € 23,500 0.6728 Prepaid Exp / (Accrued Exp) 93 ( 161 ) ( 68 )

C$ 27,997 € 19,000 0.6786 (Accrued Exp) — ( 574 ) ( 574 )

£ 344,793 U.S.$ 477,600 1.3852 Prepaid Exp / (Accrued Exp) 7,321 ( 732 ) 6,589

A$ 52,396 U.S.$ 39,225 0.7486 Prepaid Exp / (Accrued Exp) 656 ( 36 ) 620

A$ 57,829 U.S.$ 42,500 0.7349 (Accrued Exp) — ( 986 ) ( 986 )

zł 442,000 £ 82,252 0.1861 Prepaid Exp / (Accrued Exp) 1,349 ( 85 ) 1,264

28 unchanged sentences

Total fair value of derivative financial instruments $ 9,029 $ ( 21,921 ) $ ( 12,892 )

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at August 1, 2020:

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at October 31, 2020:

In thousands Pay Receive Blended

5 unchanged sentences

Intercompany balances, primarily debt related:

zł 65,000 £ 12,780 0.1966 (Accrued Exp) $ — $ ( 628 ) $ ( 628 )

zł 65,000 £ 12,780 0.1966 Prepaid Exp / (Accrued Exp) $ 195 $ ( 68 ) $ 127

€ 60,000 £ 53,412 0.8902 (Accrued Exp) — ( 904 ) ( 904 )

A$ 110,000 U.S.$ 70,802 0.6437 (Accrued Exp) — ( 7,798 ) ( 7,798 )

A$ 80,000 U.S.$ 58,016 0.7252 Prepaid Exp 1,749 — 1,749

U.S.$ 72,475 £ 55,000 0.7589 (Accrued Exp) — ( 1,280 ) ( 1,280 )

£ 200,000 U.S.$ 249,499 1.2475 (Accrued Exp) — ( 9,810 ) ( 9,810 )

C$ 550,000 U.S.$ 390,766 0.7105 (Accrued Exp) — ( 19,571 ) ( 19,571 )

Economic hedges for which hedge accounting was not elected:

5 unchanged sentences

N/A (Accrued Exp) — ( 15,078 ) ( 15,078 )

Intercompany billings in TJX International, primarily merchandise related:

€ 73,400 £ 65,678 0.8948 (Accrued Exp) — ( 570 ) ( 570 )

Merchandise purchase commitments:

1 unchanged sentence

£ 415,653 U.S.$ 533,150 1.2827 Prepaid Exp / (Accrued Exp) 1,050 ( 6,768 ) ( 5,718 )

A$ 40,156 U.S.$ 28,250 0.7035 (Accrued Exp) — ( 447 ) ( 447 )

A$ 45,584 U.S.$ 32,650 0.7163 Prepaid Exp 600 — 600

zł 264,400 £ 53,293 0.2016 Prepaid Exp 2,189 — 2,189

U.S.$ 3,771 € 3,383 0.8971 Prepaid Exp 213 — 213

U.S.$ 53,605 € 45,600 0.8507 (Accrued Exp) — ( 394 ) ( 394 )

Total fair value of derivative financial instruments $ 9,111 $ ( 35,454 ) $ ( 26,343 )

4 unchanged sentences

Recognized in Income / (Loss) by

Thirteen Weeks Ended Twenty-Six Weeks Ended

In thousands July 31,

2021 August 1,

2020 July 31,

2021 August 1,

Thirteen Weeks Ended Thirty-Nine Weeks Ended

In thousands October 30,

2021 October 31,

2020 October 30,

2021 October 31,

Fair value hedges:

11 unchanged sentences

The following table sets forth TJX’s financial assets and liabilities that are accounted for at fair value on a recurring basis:

In thousands July 31,

In thousands October 30,

2021 January 30,

2021 August 1,

2021 October 31,

Executive Savings Plan investments $ 405,290 $ 363,729 $ 327,833

10 unchanged sentences

These inputs are considered to be Level 2.

The fair value of long-term debt as of July 31, 2021 was $ 3.7 billion compared to a carrying value of $ 3.4 billion.

The fair value of long-term debt as of October 30, 2021 was $ 3.6 billion compared to a carrying value of $ 3.4 billion.

The fair value of long-term debt as of January 30, 2021 was $ 5.9 billion compared to a carrying value of $ 5.3 billion.

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.

The fair value of long-term debt as of August 1, 2020 was $ 6.4 billion compared to a carrying value of $ 5.4 billion.

The fair value of long-term debt as of October 31, 2020 was $ 6.3 billion compared to a carrying value of $ 5.4 billion.

These estimates do not necessarily reflect provisions or restrictions in the various debt agreements that might affect TJX’s ability to settle these obligations.

1 unchanged sentence

Certain assets and liabilities are measured at fair value on a nonrecurring basis, whereas the majority of 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.

For the periods ended July 31, 2021, January 30, 2021 and August 1, 2020, the Company did not record any material impairments to long-lived assets.

For the periods ended October 30, 2021, January 30, 2021 and October 31, 2020, the Company did not record any material impairments to long-lived assets.

Segment Information

1 unchanged sentence

The Marmaxx segment (T.J.

Maxx, Marshalls, tjmaxx.com and marshalls.com) and the HomeGoods segment (HomeGoods and Homesense) both operate in the United States, the TJX Canada segment operates Winners, HomeSense and Marshalls in Canada, and the TJX International segment operates T.K.

Maxx, Marshalls, tjmaxx.com and marshalls.com) and the HomeGoods segment (HomeGoods, Homesense, and homegoods.com) both operate in the United States, the TJX Canada segment operates Winners, HomeSense and Marshalls in Canada, and the TJX International segment operates T.K.

Maxx, Homesense and tkmaxx.com in Europe and T.K.

9 unchanged sentences

Presented below is financial information with respect to TJX’s business segments:

Thirteen Weeks Ended Twenty-Six Weeks Ended

In thousands July 31,

2021 August 1,

2020 July 31,

2021 August 1,

Thirteen Weeks Ended Thirty-Nine Weeks Ended

In thousands October 30,

2021 October 31,

2020 October 30,

2021 October 31,

In the United States:

10 unchanged sentences

TJX International 127,074 86,576 78,972 ( 303,303 )

Total segment profit (loss) 1,488,843 88,750 2,415,319 ( 1,130,420 )

Total segment profit 1,547,832 1,219,375 3,963,151 88,955

General corporate expense 148,123 150,499 472,167 374,259

6 unchanged sentences

Thirteen Weeks Ended Thirteen Weeks Ended

In thousands July 31,

2021 August 1,

2020 July 31,

2021 August 1,

In thousands October 30,

2021 October 31,

2020 October 30,

2021 October 31,

Service cost $ 11,900 $ 12,512 $ 309 $ 404

4 unchanged sentences

Funded Plan Unfunded Plan

Twenty-Six Weeks Ended Twenty-Six Weeks Ended

In thousands July 31,

2021 August 1,

2020 July 31,

2021 August 1,

Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended

In thousands October 30,

2021 October 31,

2020 October 30,

2021 October 31,

Service cost $ 36,837 $ 37,592 $ 1,819 $ 1,822

8 unchanged sentences

Long-Term Debt and Credit Lines

The table below presents long-term debt, exclusive of current installments, as of July 31, 2021, January 30, 2021 and August 1, 2020.

The table below presents long-term debt, exclusive of current installments, as of October 30, 2021, January 30, 2021 and October 31, 2020.

All amounts are net of unamortized debt discounts.

In thousands July 31,

In thousands October 30,

2021 January 30,

2021 August 1,

2021 October 31,

General corporate debt:

2.750 % senior unsecured notes, redeemed on April 15, 2021 (effective interest rate of 2.76 % after reduction of unamortized debt discount of $ 25 at January 30, 2021 and $ 63 at August 1, 2020)

2.750 % senior unsecured notes, redeemed on April 15, 2021 (effective interest rate of 2.76 % after reduction of unamortized debt discount of $ 25 at January 30, 2021 and $ 44 at October 31, 2020)

$ — $ 749,975 $ 749,956

2.500 % senior unsecured notes, maturing May 15, 2023 (effective interest rate of 2.51 % after reduction of unamortized debt discount of $ 78 at July 31, 2021, $ 100 at January 30, 2021 and $ 122 at August 1, 2020)

2.500 % senior unsecured notes, maturing May 15, 2023 (effective interest rate of 2.51 % after reduction of unamortized debt discount of $ 67 at October 30, 2021, $ 100 at January 30, 2021 and $ 111 at October 31, 2020)

499,933 499,900 499,889

3.500 % senior unsecured notes, redeemed on June 4, 2021 (effective interest rate of 3.58 % after reduction of unamortized debt discount of $ 4,208 at January 30, 2021 and $ 4,713 at August 1, 2020)

3.500 % senior unsecured notes, redeemed on June 4, 2021 (effective interest rate of 3.58 % after reduction of unamortized debt discount of $ 4,208 at January 30, 2021 and $ 4,461 at October 31, 2020)

— 1,245,792 1,245,539

2.250 % senior unsecured notes, maturing September 15, 2026 (effective interest rate of 2.32 % after reduction of unamortized debt discount of $ 3,792 at July 31, 2021, $ 4,165 at January 30, 2021 and $ 4,538 at August 1, 2020)

2.250 % senior unsecured notes, maturing September 15, 2026 (effective interest rate of 2.32 % after reduction of unamortized debt discount of $ 3,606 at October 30, 2021, $ 4,165 at January 30, 2021 and $ 4,352 at October 31, 2020)

996,394 995,835 995,648

3.750 % senior unsecured notes, redeemed on June 4, 2021 (effective interest rate of 3.76 % after reduction of unamortized debt discount of $ 456 at January 30, 2021 and $ 493 at August 1, 2020)

3.750 % senior unsecured notes, redeemed on June 4, 2021 (effective interest rate of 3.76 % after reduction of unamortized debt discount of $ 456 at January 30, 2021 and $ 474 at October 31, 2020)

— 749,544 749,526

1.150 % senior unsecured notes, maturing May 15, 2028 (effective interest rate of 1.18 % after reduction of unamortized debt discount of $ 875 at July 31, 2021 and $ 939 at January 30, 2021)

1.150 % senior unsecured notes, maturing May 15, 2028 (effective interest rate of 1.18 % after reduction of unamortized debt discount of $ 843 at October 30, 2021 and $ 939 at January 30, 2021)

499,157 499,061 —

3.875 % senior unsecured notes, maturing April 15, 2030;

see tender offer details below (effective interest rate of 3.89 % after reduction of unamortized debt discount of $ 537 at July 31, 2021, $ 568 at January 30, 2021 and $ 1,510 at August 1, 2020)

see tender offer details below (effective interest rate of 3.89 % after reduction of unamortized debt discount of $ 522 at October 30, 2021, $ 568 at January 30, 2021 and $ 1,471 at October 31, 2020)

495,328 495,282 1,248,529

1.600 % senior unsecured notes, maturing May 15, 2031 (effective interest rate of 1.61 % after reduction of unamortized debt discount of $ 581 at July 31, 2021 and $ 610 at January 30, 2021)

1.600 % senior unsecured notes, maturing May 15, 2031 (effective interest rate of 1.61 % after reduction of unamortized debt discount of $ 566 at October 30, 2021 and $ 610 at January 30, 2021)

499,434 499,390 —

4.500 % senior unsecured notes, maturing April 15, 2050;

see tender offer details below (effective interest rate of 4.52 % after reduction of unamortized debt discount of $ 2,170 at July 31, 2021, $ 2,208 at January 30, 2021 and $ 4,368 at August 1, 2020)

see tender offer details below (effective interest rate of 4.52 % after reduction of unamortized debt discount of $ 2,151 at October 30, 2021, $ 2,208 at January 30, 2021 and $ 4,333 at October 31, 2020)

383,348 383,291 745,667

3 unchanged sentences

Long-term debt $ 3,353,866 $ 5,332,921 $ 5,447,208

Senior Unsecured Notes

On June 4, 2021, the Company completed make-whole calls for its $ 1.25 billion aggregate principal amount of 3.500 % Notes maturing in 2025 and its $ 750 million aggregate principal amount of 3.750 % Notes maturing in 2027, which 3.500 % Notes and 3.750 % Notes were originally issued and sold during the fiscal quarter ended May 2, 2020.

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On April 15, 2021, the Company redeemed all of the outstanding $ 750 million in aggregate principal amount of its 2.750 % Notes due June 15, 2021 at a redemption price equal to 100 % of the principal amount thereof, plus accrued and unpaid interest thereon to the redemption date.

During the fiscal quarter ended May 2, 2020, the Company issued and sold $ 1.25 billion aggregate principal amount of 3.875 % Notes due 2030 and $ 750 million aggregate principal amount of 4.500 % Notes due 2050, portions of which were subsequently repurchased pursuant to cash tender offers completed by the Company in December 2020, reducing the aggregate principal amount outstanding to $ 495.5 million and $ 385.5 million, respectively.

On April 1, 2020, the Company issued and sold $ 1.25 billion aggregate principal amount of 3.875 % Notes due 2030 and $ 750 million aggregate principal amount of 4.500 % Notes due 2050, portions of which were subsequently repurchased pursuant to cash tender offers completed by the Company in December 2020, reducing the aggregate principal amount outstanding to $ 495.5 million and $ 385.5 million, respectively.

Interest on these notes are payable semi-annually.

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Interest on these notes are payable semi-annually.

Credit Facilities

On June 25, 2021, the Company entered into a revolving credit agreement providing for a $ 1 billion senior unsecured revolving credit facility maturing on June 25, 2026 (the “2026 Revolving Credit Facility”).

The 2026 Revolving Credit Facility replaced the Company's $ 500 million revolving credit facility that matures in March 2022 (the “2022 Revolving Credit Facility”) and the $ 500 million 364 day revolving credit facility that matures in August 2021 (the “364-Day Revolving Credit Facility”).

The 2026 Revolving Credit Facility replaced the Company's $ 500 million revolving credit facility that was scheduled to mature in March 2022 (the “2022 Revolving Credit Facility”) and the $ 500 million 364 day revolving credit facility that was scheduled to mature in August 2021 (the “364-Day Revolving Credit Facility”).

Each of the 2022 Revolving Credit Facility and the 364-Day Revolving Credit Facility were terminated on June 25, 2021.

With the 2026 Revolving Credit Facility and the Company’s existing $ 500 million revolving credit facility that matures in May 2024 (the “2024 Revolving Credit Facility”), the Company maintained its borrowing capacity of $ 1.5 billion, all of which remains available to the Company as of July 31, 2021.

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 Company’s long-term debt ratings.

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The revolving credit facilities require the Company to maintain a quarterly-tested leverage ratio of funded debt to earnings before interest, taxes, depreciation and amortization and rentals.

As of July 31, 2021, January 30, 2021 and August 1, 2020, there were no amounts outstanding under any of the Company’s facilities.

As of October 30, 2021, January 30, 2021 and October 31, 2020, there were no amounts outstanding under any of the Company’s facilities.

TJX was in compliance with all covenants related to its credit facilities at the end of all periods presented.

As of July 31, 2021, January 30, 2021 and August 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.

As of July 31, 2021, January 30, 2021 and August 1, 2020, and during the quarters and year then ended, there were no amounts outstanding on the Canadian credit line.

As of July 31, 2021, January 30, 2021 and August 1, 2020, our European business at TJX International had an uncommitted credit line of £ 5 million.

As of July 31, 2021, January 30, 2021 and August 1, 2020, and during the quarters and year then ended, there were no amounts outstanding on the European credit line.

The e ffective income tax rate was 25.5 % for the second quarter of fiscal 2022 and ( 132.8 )% for the second quarter of fiscal 2021.

The effective income tax rate was 25.7 % for the first six months of fiscal 2022 and 23.2 % for the first six months of fiscal 2021.

The increase in the effective income tax rate for the quarter and six month period was primarily due to the decrease of anticipated benefit from the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) enacted on March 27, 2020 in the second quarter of fiscal 2021.

TJX had net unrecognized tax benefits of $ 280 million as of July 31, 2021, $ 272 million as of January 30, 2021 and $ 262 million as of August 1, 2020.

As of October 30, 2021, January 30, 2021 and October 31, 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.

As of October 30, 2021, January 30, 2021 and October 31, 2020, and during the quarters and year then ended, there were no amounts outstanding on the Canadian credit line.

As of October 30, 2021, January 30, 2021 and October 31, 2020, our European business at TJX International had an uncommitted credit line of £ 5 million.

As of October 30, 2021, January 30, 2021 and October 31, 2020, and during the quarters and year then ended, there were no amounts outstanding on the European credit line.

The e ffective income tax rate was 25.8 % for the third quarter of fiscal 2022 and 14.7 % for the third quarter of fiscal 2021.

The increase in the third quarter effective income tax rate is primarily due to a benefit of the jurisdictional mix of profits and losses, and the better than anticipated results, as of the third quarter of fiscal 2021.

The effective income tax rate was 25.7 % for the first nine months of fiscal 2022 and 43.9 % for the first nine months of fiscal 2021.

The decrease in the effective income tax rate for the nine months of fiscal 2022 was primarily due to the significant increase in profit through the third quarter of fiscal 2022 as compared to the mix of income and losses by jurisdictions through the third quarter of fiscal 2021.

TJX had net unrecognized tax benefits of $ 287 million as of October 30, 2021, $ 272 million as of January 30, 2021 and $ 267 million as of October 31, 2020.

TJX is subject to U.S.

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TJX’s accounting policy classifies interest and penalties related to income tax matters as part of income tax expense.

The total accrued amount on the Consolidated Balance Sheets for interest and penalties was $ 40 million as of July 31, 2021, $ 36 million as of January 30, 2021 and $ 32 million as of August 1, 2020.

The total accrued amount on the Consolidated Balance Sheets for interest and penalties was $ 43 million as of October 30, 2021, $ 36 million as of January 30, 2021 and $ 34 million as of October 31, 2020.

Based on the outcome of tax examinations or judicial or administrative proceedings, or as a result of the expiration of statutes of limitations in specific jurisdictions, it is reasonably possible that unrecognized tax benefits for certain tax positions taken on previously filed tax returns may change materially from those presented in the Consolidated Financial Statements.

3 unchanged sentences

Contingent Obligations

TJX has contingent obligations on leases, for which it was a lessee or guarantor, that were assigned to third parties without TJX being released by the landlords.

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.

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.

The Company may also be contingently liable for assignments and subleases if the assignees or subtenants do not fulfill their obligations.

TJX estimates the undiscounted value of these contingent obligations as of July 31, 2021 to be approximately $ 8 million.

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.

These obligations are often limited in time and amount.

These obligations are sometimes limited in time or amount.

There are no amounts reflected in the Company’s Consolidated Balance Sheets with respect to these contingent obligations.

6 unchanged sentences

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.

What changed 10-Q

Item 1. Financial Statements