þ | Quarterly Report under Section 13 and 15(d) Of the Securities Exchange Act of 1934 |
o | Transition Report Pursuant to Section 13 and 15(d) Of the Securities Exchange Act of 1934 |
DELAWARE
(State or other jurisdiction of incorporation or organization) |
04-2207613
(I.R.S. Employer Identification No.) |
|
770 Cochituate Road
Framingham, Massachusetts (Address of principal executive offices) |
01701
(Zip Code) |
1
Thirteen Weeks Ended | ||||||||
July 30, | July 31, | |||||||
2005 | 2004 | |||||||
Net sales
|
$ | 3,647,866 | $ | 3,414,287 | ||||
|
||||||||
|
||||||||
Cost of sales, including buying and occupancy costs
|
2,801,376 | 2,629,207 | ||||||
|
||||||||
Selling, general and administrative expenses
|
638,082 | 584,751 | ||||||
|
||||||||
Interest expense, net
|
7,917 | 6,993 | ||||||
|
||||||||
|
||||||||
Income before provision for income taxes
|
200,491 | 193,336 | ||||||
|
||||||||
Provision for income taxes
|
77,350 | 75,094 | ||||||
|
||||||||
|
||||||||
Net income
|
$ | 123,141 | $ | 118,242 | ||||
|
||||||||
|
||||||||
Earnings per share:
|
||||||||
|
||||||||
Net income:
|
||||||||
Basic
|
$ | .26 | $ | .24 | ||||
Weighted average common shares basic
|
467,206 | 491,987 | ||||||
|
||||||||
Diluted
|
$ | .25 | $ | .23 | ||||
Weighted average common shares diluted
|
490,662 | 516,089 | ||||||
|
||||||||
Cash dividends declared per share
|
$ | .06 | $ | .045 |
2
Twenty-Six Weeks Ended | ||||||||
July 30, | July 31, | |||||||
2005 | 2004 | |||||||
Net sales
|
$ | 7,299,696 | $ | 6,767,024 | ||||
|
||||||||
|
||||||||
Cost of sales, including buying and occupancy costs
|
5,582,905 | 5,147,553 | ||||||
|
||||||||
Selling, general and administrative expenses
|
1,259,629 | 1,138,225 | ||||||
|
||||||||
Interest expense, net
|
13,953 | 13,576 | ||||||
|
||||||||
|
||||||||
Income before provision for income taxes
|
443,209 | 467,670 | ||||||
|
||||||||
Provision for income taxes
|
170,724 | 181,316 | ||||||
|
||||||||
|
||||||||
Net income
|
$ | 272,485 | $ | 286,354 | ||||
|
||||||||
|
||||||||
Earnings per share:
|
||||||||
|
||||||||
Net income:
|
||||||||
Basic
|
$ | .58 | $ | .58 | ||||
Weighted average common shares basic
|
472,055 | 494,524 | ||||||
|
||||||||
Diluted
|
$ | .55 | $ | .56 | ||||
Weighted average common shares diluted
|
495,983 | 518,854 | ||||||
|
||||||||
Cash dividends declared per share
|
$ | .12 | $ | .09 |
3
4
Twenty-Six Weeks Ended | ||||||||
July 30, | July 31, | |||||||
2005 | 2004 | |||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 272,485 | $ | 286,354 | ||||
Adjustments to reconcile net income to net cash
provided by operating activities:
|
||||||||
Depreciation and amortization
|
156,653 | 135,715 | ||||||
Property disposals
|
4,578 | 919 | ||||||
Deferred income tax provision
|
(1,974 | ) | 36,494 | |||||
Amortization of unearned stock compensation
|
3,244 | 4,748 | ||||||
Tax benefit of employee stock options
|
4,679 | 9,793 | ||||||
Changes in assets and liabilities:
|
||||||||
(Increase) in accounts receivable
|
(2,044 | ) | (8,691 | ) | ||||
(Increase) in merchandise inventories
|
(474,733 | ) | (276,455 | ) | ||||
(Increase) in prepaid expenses and other current assets
|
(131,663 | ) | (60,968 | ) | ||||
Increase in accounts payable
|
249,587 | 182,276 | ||||||
Increase in accrued expenses and other liabilities
|
96,545 | 31,660 | ||||||
Other, net
|
8,151 | 8,499 | ||||||
|
||||||||
Net cash provided by operating activities
|
185,508 | 350,344 | ||||||
|
||||||||
|
||||||||
Cash flows from investing activities:
|
||||||||
Property additions
|
(219,112 | ) | (138,212 | ) | ||||
Proceeds from repayments on note receivable
|
320 | 319 | ||||||
|
||||||||
Net cash (used in) investing activities
|
(218,792 | ) | (137,893 | ) | ||||
|
||||||||
|
||||||||
Cash flows from financing activities:
|
||||||||
Proceeds from borrowings of short-term debt
|
414,498 | | ||||||
Payments on capital lease obligation
|
(774 | ) | (715 | ) | ||||
Principal payments on long-term debt
|
(99,995 | ) | (2 | ) | ||||
Cash payments for repurchase of common stock
|
(383,346 | ) | (315,836 | ) | ||||
Proceeds from sale and issuance of common stock, net
|
27,321 | 34,867 | ||||||
Cash dividends paid
|
(49,857 | ) | (39,727 | ) | ||||
|
||||||||
Net cash (used in) financing activities
|
(92,153 | ) | (321,413 | ) | ||||
|
||||||||
|
||||||||
Effect of exchange rate changes on cash
|
(61 | ) | (1,856 | ) | ||||
|
||||||||
|
||||||||
Net (decrease) in cash and cash equivalents
|
(125,498 | ) | (110,818 | ) | ||||
Cash and cash equivalents at beginning of year
|
307,187 | 246,403 | ||||||
|
||||||||
|
||||||||
Cash and cash equivalents at end of period
|
$ | 181,689 | $ | 135,585 | ||||
|
5
6
7
8
9
10
11
12
1.
The results for the first six months are not necessarily indicative of results for the full
fiscal year, because TJXs business, in common with the businesses of retailers generally, is
subject to seasonal influences, with higher levels of sales and income generally realized in
the second half of the year.
2.
The consolidated interim financial statements are unaudited and, in the opinion of
management, reflect all normal recurring adjustments, the use of retail statistics, and
accruals and deferrals among periods required to match costs properly with the related revenue
or activity, considered necessary by TJX for a fair presentation of its financial statements
for the periods reported, all in accordance with generally accepted accounting principles and
practices consistently applied. The consolidated interim financial statements should be read
in conjunction with the audited consolidated financial statements, including notes thereto,
contained in TJXs Annual Report on Form 10-K for the year ended January 29, 2005.
3.
TJXs cash payments for interest and income taxes are as follows:
Twenty-Six Weeks Ended
July 30,
July 31,
2005
2004
(In thousands)
$
14,317
$
12,362
$
193,392
$
159,338
4.
We have a reserve for potential future obligations of discontinued operations that relates
primarily to real estate leases of former TJX businesses. The reserve reflects TJXs
estimation of its cost for claims that have been, or are likely to be, made against TJX for
liability as an original lessee or guarantor of the leases, after mitigation of the number and
cost of lease obligations.
At July 30, 2005, substantially all leases of discontinued operations that were rejected in
bankruptcy and for which the landlords asserted liability against TJX had been resolved. It is
possible that there will be future costs for leases from these discontinued operations that were
not terminated or had not expired. We do not expect to incur any material costs related to our
discontinued operations in excess of our reserve. The reserve balance amounted to $12.1 million
as of July 30, 2005 and $16.6 million as of July 31, 2004.
During the quarters ended April 30, 2005 and July 31, 2004, we received recoveries in the
bankruptcy of one of our discontinued operations of $2.2 million and $2.3 million, respectively.
The receipt of these proceeds was offset by equivalent additions to
our reserve. Any additional creditor recoveries are expected to be
immaterial.
We may also be contingently liable on up to 18 leases of BJs Wholesale Club, Inc. for which
BJs Wholesale Club is primarily liable. Our reserve for discontinued operations does not
reflect these leases, because we believe that the likelihood of any future liability to us with
respect to these leases is remote due to the current financial condition of BJs Wholesale Club.
Table of Contents
5.
TJXs comprehensive income for the second quarter and six months ended July 30, 2005 and July
31, 2004 is presented below:
Thirteen Weeks Ended
July 30,
July 31,
2005
2004
(In thousands)
$
123,141
$
118,242
(16,265
)
4,875
12,089
(4,186
)
(4,936
)
2,139
$
116,168
$
118,931
Twenty-Six Weeks Ended
July 30,
July 31,
2005
2004
(In thousands)
$
272,485
$
286,354
(11,728
)
69
8,742
(1,135
)
(3,795
)
183
$
265,887
$
285,288
Table of Contents
6.
The computation of basic and diluted earnings per share is as follows:
Thirteen Weeks Ended
July 30,
July 31,
2005
2004
(In thousands except
per share amounts)
$
123,141
$
118,242
467,206
491,987
$
.26
$
.24
$
123,141
$
118,242
1,129
1,106
$
124,270
$
119,348
467,206
491,987
6,551
7,197
16,905
16,905
490,662
516,089
$
.25
$
.23
Twenty-Six Weeks Ended
July 30,
July 31,
2005
2004
(In thousands except
per share amounts)
$
272,485
$
286,354
472,055
494,524
$
.58
$
.58
$
272,485
$
286,354
2,255
2,249
$
274,740
$
288,603
472,055
494,524
7,023
7,425
16,905
16,905
495,983
518,854
$
.55
$
.56
Table of Contents
The weighted average common shares for the diluted earnings per share calculation exclude the
incremental effect related to outstanding stock options when the exercise price of the option is
in excess of the related periods average price of TJXs common stock. There were 10,000 such
options excluded for the thirteen week and twenty-six week calculations as of July 30, 2005. No
such options were excluded for either the thirteen week or twenty-six week calculations as of
July 31, 2004. The 16.9 million shares attributable to the zero coupon convertible debt are
included in the diluted earnings per share calculation in all periods presented in accordance
with Emerging Issues Task Force Issue No. 04-08, The Effect of Contingently Convertible Debt on
Diluted Earnings per Share. This accounting change was implemented in the fourth quarter of the
fiscal year ended January 29, 2005 and was applied retroactively.
7.
During the second quarter ended July 30, 2005, TJX repurchased and retired 5.5 million shares
of its common stock at a cost of $126.9 million. For the six months ended July 30, 2005, TJX
repurchased and retired 16.4 million shares at a cost of $389.7 million. Through July 30,
2005, under the current $1 billion stock repurchase program, TJX
has repurchased 34.1 million
shares at a cost of $796.3 million.
8.
TJX evaluates the performance of its segments based on segment profit or loss which TJX
defines as pre-tax income before general corporate expense and interest. Segment profit or
loss as defined by TJX may not be comparable to similarly titled measures used by other
entities. In addition, this measure of performance should not be considered an alternative to
net income or cash flows from operating activities as an indicator of our performance or as a
measure of liquidity. Presented below is financial information on TJXs business segments (in
thousands):
Thirteen Weeks Ended
July 30,
July 31,
2005
2004
$
2,537,311
$
2,442,162
316,842
292,566
327,540
275,426
259,116
222,079
147,251
118,262
59,806
63,792
$
3,647,866
$
3,414,287
$
211,581
$
202,582
20,567
21,101
10,484
9,533
(3,700
)
(626
)
(1,587
)
(3,239
)
(8,743
)
(8,231
)
228,602
221,120
20,194
20,791
7,917
6,993
$
200,491
$
193,336
Table of Contents
Twenty-Six Weeks Ended
July 30,
July 31,
2005
2004
$
5,100,897
$
4,863,386
629,939
562,191
645,246
538,673
517,743
448,511
286,622
229,108
119,249
125,155
$
7,299,696
$
6,767,024
$
479,241
$
474,496
32,911
45,494
10,143
11,476
(3,077
)
4,535
(4,547
)
(6,192
)
(15,266
)
(6,981
)
499,405
522,828
42,243
41,582
13,953
13,576
$
443,209
$
467,670
9.
TJX has adopted the disclosure-only provisions of Statement of Financial Accounting Standards
(SFAS) No. 123, Accounting for Stock-Based Compensation, and continues to apply the
provisions of Accounting Principles Board (APB) Opinion No. 25, Accounting for Stock Issued
to Employees, in accounting for compensation expense under our stock option plan. We grant
options at fair market value on the date of the grant; accordingly, no compensation expense is
recognized for any options issued. Compensation expense for stock-based compensation
determined in accordance with SFAS No. 123, net of related income tax effect, would have
amounted to $13.6 million and $13.8 million for the fiscal quarters ended July 30, 2005 and
July 31, 2004, respectively, and $28.0 million and $28.6 million for the six months ended July
30, 2005 and July 31, 2004, respectively.
Presented below are the unaudited pro forma net income and related earnings per share showing
the effect that stock-based compensation expense, determined in accordance with SFAS No. 123,
would have on reported results (dollars in thousands except per share amounts):
Thirteen Weeks Ended
July 30,
July 31,
2005
2004
$
123,141
$
118,242
1,240
953
(13,567
)
(13,842
)
$
110,814
$
105,353
Table of Contents
Thirteen Weeks Ended
July 30,
July 31,
2005
2004
$
.26
$
.24
$
.24
$
.21
$
.25
$
.23
$
.23
$
.21
Twenty-Six Weeks Ended
July 30,
July 30,
2005
2004
$
272,485
$
286,354
1,947
2,849
(28,037
)
(28,627
)
$
246,395
$
260,576
$
.58
$
.58
$
.52
$
.53
$
.55
$
.56
$
.50
$
.51
10.
The following represents the net periodic pension and postretirement benefit costs and
related components for the twenty-six weeks ended July 30, 2005 and July 31, 2004 (in
thousands):
Pension
Pension
Postretirement
(Funded Plan)
(Unfunded Plan)
Medical
July 30,
July 31,
July 30,
July 31,
July 30,
July 31,
2005
2004
2005
2004
2005
2004
$
16,225
$
12,973
$
760
$
602
$
2,337
$
1,828
9,611
9,224
1,433
1,410
1,284
1,270
(12,538
)
(10,714
)
37
38
29
29
180
238
(191
)
166
3,134
4,489
738
798
93
86
$
16,461
$
16,001
$
3,148
$
3,086
$
3,523
$
3,350
Table of Contents
TJX made voluntary funding contributions to its funded pension plan in the fiscal years ended in
January 2005 and 2004. TJX could make a voluntary contribution for the current fiscal year but
we do not anticipate any required funding for our current fiscal year.
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 provides a federal
subsidy to sponsors of retiree health care benefits if the benefit they provide is at least
actuarially equivalent to Medicare Part D. The FASB issued a FASB Staff Position (FSP FAS 106-2)
entitled Accounting and Disclosure Requirements Related to the Medicare Prescription Drug,
Improvement and Modernization Act of 2003. TJX has determined that its plan is not actuarially
equivalent to Medicare Part D, and accordingly, the above postretirement medical cost does not
reflect any federal subsidy.
11.
At July 30, 2005, TJX had interest rate swap agreements outstanding with a notional amount
of $100 million. The agreements entitle TJX to receive biannual payments of interest at a
fixed rate of 7.45% and pay a floating rate of interest indexed to the six-month LIBOR rate
with no exchange of the underlying notional amounts.
The interest rate swap agreements converted a portion of TJXs long-term debt from a fixed rate
obligation to a floating rate obligation. TJX has designated the interest rate swaps as a fair
value hedge of the related long-term debt. The fair value of the swap agreements outstanding at
July 30, 2005, excluding the estimated net interest receivable, was a liability of $4.1 million.
The valuation of the derivative instruments results in an offsetting fair value adjustment to
the debt hedged; accordingly, long-term debt has been reduced by $4.1 million.
12.
In May 2005, we entered into a $500 million four-year revolving credit facility and a $500
million five-year revolving credit facility. These arrangements replaced our $370 million
five-year revolving credit facility entered into in March 2002 and our $330 million 364-day
revolving credit facility, which had been extended through July 15, 2005. The new agreements
have no compensating balance requirements and have various covenants including a requirement
of a specified ratio of debt to earnings. These agreements serve as back up to our commercial
paper program. At July 30, 2005, we had $415 million of commercial paper outstanding. Combined
availability under our current and prior revolving credit facilities at July 30, 2005 and July
31, 2004 was $585 million and $700 million, respectively. During the second quarter ended
July 30, 2005, we paid off our $100 million 7% unsecured notes.
13.
Effective with the third quarter ended October 30, 2004, we began to accrue for inventory
purchase obligations at the time the inventory is shipped rather than when received and
accepted by TJX. As a result, merchandise inventory and accounts payable on our balance
sheets reflect an accrual for in-transit inventory of $326.0 million at July 30, 2005 and
$236.9 million at January 29, 2005. The period ended July 31, 2004 has not been adjusted for
this change. This accrual for inventory in transit affects only the reported levels of
inventory and accounts payable on the balance sheet, and has no impact on our operating
results, cash flows, liquidity or shareholders equity.
14.
Accrued expenses and other current liabilities as of July 30, 2005 and July 31, 2004, include
$173.3 million and $96.0 million, respectively, of checks outstanding in excess of the book
balance in certain cash accounts. These are zero balance cash accounts maintained with
certain financial institutions that we fund as checks clear and for which no right of offset
exists.
Table of Contents
13
14
15
16
17
18
19
20
21
22
23
24
25
OF OPERATIONS AND FINANCIAL CONDITION
Versus
The Thirteen Weeks (second quarter) and Twenty-Six Weeks (six months) Ended July 31, 2004
Net sales increased 7% to $3.6 billion for the second quarter and 8% to $7.3 billion for
the six month period over the comparable periods last year. We continued to grow our
business, with stores in operation and total selling square footage at July 30, 2005 each
up 8% from a year ago.
Consolidated same store sales increased 1% for the second quarter and 2% on a
year-to-date basis. Same store sales results were negatively impacted by unseasonable
weather in portions of our first and second quarters and weak demand for home fashions.
Our second quarter pre-tax margin (the ratio of pre-tax income to net sales) declined
from 5.7% last year to 5.5% in the current year. Year-to-date, our pre-tax margin declined
from 6.9% last year to 6.1% in the current year. Although merchandise margins improved
across all of our divisions and expenses were less than we planned, these benefits were
more than offset by the negative impact on expense ratios of low single digit same store
sales increases across most of our divisions.
Net income for the second quarter was $123 million, a 4% increase over last years
second quarter. Net income for the six months was $272 million, a 5% decrease from net
income of $286 million for the same period last year.
Diluted earnings per share, which reflect the benefits of our stock repurchase program,
were $.25 per share for the second quarter, a 9% increase over $.23 per share last year.
Diluted earnings per share were $.55 for the six months ended July 30, 2005, as compared to
$.56 per share for the same period last year.
During the second quarter, we repurchased 5.5 million
shares of our common stock at a cost of $126.9 million
and for the year-to-date period, we repurchased 16.4 million shares at a cost of $389.7
million.
Consolidated average per store inventories, including inventory on hand at our
distribution centers, as of July 30, 2005 were 4% above the prior year. At Marmaxx,
average per store inventories were up 13% at the end of the second quarter, with the bulk
of this increase in our distribution centers, primarily due to the timing of receipts of
fresh product for the third quarter. This compares with a decline of 5% at the end of last
years second quarter. Average per store inventories at virtually all of our other
divisions were well below last years levels and our inventory position remained liquid
across all of our businesses as of July 30, 2005.
Table of Contents
Percentage of Net Sales
Percentage of Net Sales
Thirteen Weeks Ended
Twenty-Six Weeks Ended
July 30,
July 31,
July 30,
July 31,
2005
2004
2005
2004
100.0
%
100.0
%
100.0
%
100.0
%
76.8
77.0
76.5
76.1
17.5
17.1
17.3
16.8
.2
.2
.2
.2
5.5
%
5.7
%
6.1
%
6.9
%
Table of Contents
Thirteen Weeks Ended
Twenty-Six Weeks Ended
July 30,
July 31,
July 30,
July 31,
2005
2004
2005
2004
$
2,537.3
$
2,442.2
$
5,100.9
$
4,863.4
$
211.6
$
202.6
$
479.2
$
474.5
8.3
%
8.3
%
9.4
%
9.8
%
2
%
2
%
3
%
4
%
1,477
1,437
35,903
34,642
Table of Contents
Thirteen Weeks Ended
Twenty-Six Weeks Ended
July 30,
July 31,
July 30,
July 31,
2005
2004
2005
2004
$
316.8
$
292.6
$
629.9
$
562.2
$
20.6
$
21.1
$
32.9
$
45.5
6.5
%
7.2
%
5.2
%
8.1
%
(1
)%
12
%
3
%
15
%
(9
)%
11
%
(5
)%
8
%
167
162
47
32
214
194
3,814
3,620
876
603
4,690
4,223
Table of Contents
Thirteen Weeks Ended
Twenty-Six Weeks Ended
July 30,
July 31,
July 30,
July 31,
2005
2004
2005
2004
$
327.5
$
275.4
$
645.2
$
538.7
$
10.5
$
9.5
$
10.1
$
11.5
3.2
%
3.5
%
1.6
%
2.1
%
1
%
13
%
2
%
17
%
2
%
1
%
0
%
3
%
184
154
3,850
3,063
Thirteen Weeks Ended
Twenty-Six Weeks Ended
July 30,
July 31,
July 30,
July 31,
2005
2004
2005
2004
$
259.1
$
222.1
$
517.7
$
448.5
$
(3.7
)
$
(0.6
)
$
(3.1
)
$
4.5
(1.4
)%
(0.3
)%
(0.6
)%
1.0
%
0
%
(1
)%
0
%
2
%
230
192
4,453
3,748
Table of Contents
Thirteen Weeks Ended
Twenty-Six Weeks Ended
July 30,
July 31,
July 30,
July 31,
2005
2004
2005
2004
$
147.3
$
118.3
$
286.6
$
229.1
$
(1.6
)
$
(3.2
)
$
(4.5
)
$
(6.2
)
(1.1
)%
(2.7
)%
(1.6
)%
(2.7
)%
1
%
2
%
1
%
5
%
143
108
2,872
2,153
Thirteen Weeks Ended
Twenty-Six Weeks Ended
July 30,
July 31,
July 30,
July 31,
2005
2004
2005
2004
$
59.8
$
63.8
$
119.2
$
125.2
$
(8.7
)
$
(8.2
)
$
(15.3
)
$
(7.0
)
(14.6
)%
(12.9
)%
(12.8
)%
(5.6
)%
34
31
1,230
1,124
General corporate expense for segment reporting purposes are those costs not specifically related
to the operations of our business segments, and is included in selling, general and administrative
expenses. General corporate expense for the second quarter and six months ended July 30, 2005 was
comparable to the prior year periods.
Table of Contents
Table of Contents
Our ability to continue our successful expansion of our operations
including expansion of our store base across all chains at the
projected rate, and our ability to continue to increase both total
sales and same store sales and to manage rapid growth.
Risks of expansion of existing businesses in new markets and of new
businesses and of entry into traditional retail businesses and new
channels of distribution such as e-commerce.
Our ability to implement our opportunistic inventory strategies
successfully including availability, selection and acquisition of
appropriate merchandise in appropriate amounts on favorable terms and
at the appropriate times.
Our ability to effectively manage our inventories including effective
and timely distribution to stores and maintenance of appropriate mix
and levels of inventory and effective management of pricing and
mark-downs.
Consumer confidence, demand, spending habits and buying preferences.
Effects of unseasonable weather on consumer demand.
Competitive factors, including pricing and promotional activities of
competitors and in the retail industry generally, changes in
competitive practices, new competitors, competition from alternative
distribution channels and excess retail capacity.
Availability of adequate numbers of store and distribution center
locations for lease in desirable locations on suitable terms.
Factors affecting our recruitment and employment of associates
including our ability to recruit, develop and retain quality sales
associates and management personnel in adequate numbers; labor
contract negotiations; and effects of immigration, wage, entitlement
and other governmental regulation of employment.
Factors affecting expenses including pressure on wages, health care
costs and other benefits, pension plan returns, energy and fuel
costs, availability and costs of insurance and actual liabilities
with respect to casualty insurance.
Success of our acquisition and divestiture activities.
Our ability to successfully implement new technologies and systems
and adequate disaster recovery systems.
Our ability to continue to generate cash flows to support capital
expansion, general operating activities and stock repurchase
programs.
General economic conditions in countries and regions where we operate
that affect consumer demand including consumer credit availability,
consumer debt levels and delinquencies and default rates, financial
market performance, inflation, commodity prices and unemployment.
Potential disruptions due to wars, other military actions, terrorist
incidents, civil unrest, epidemics, natural disasters (including
Hurricane Katrina) and other events beyond our control.
Changes in currency and exchange rates in countries where we operate
or where we buy merchandise.
Import risks, including potential disruptions in supply, changes in
duties, tariffs, quotas and voluntary export restrictions on imported
merchandise, strikes and other events affecting delivery; and
economic, political or other problems in countries from or through
which merchandise is imported.
Adverse outcomes for any significant litigation.
Changes in laws and regulations and accounting rules and principles.
Our ability to maintain adequate and effective internal control over
financial reporting, given the limitations inherent in internal
control systems.
Table of Contents
PART I
(Continued)
Item 3
Quantitative and Qualitative Disclosure about Market Risk
Item 4
Controls and Procedures
Table of Contents
PART II.
Other Information
Item 2
Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities
Information on Share Repurchases
The number of shares of common stock repurchased by TJX during the second quarter of
fiscal 2006 and the average price per share paid is as follows:
Maximum Number
(or Approximate
Total Number of
Dollar Value)
Shares Purchased
of Shares that
as Part of
May Yet be
Number of Shares
Average Price
Publicly Announced
Purchased Under
Repurchased
Paid Per Share
Plan or Program
Plans or Programs
2,533,800
$
22.90
2,533,800
$
272,542,254
857,800
$
23.35
857,800
$
252,513,246
2,060,710
$
23.69
2,060,710
$
203,703,062
5,452,310
5,452,310
Item 4
Submission of Matters to a vote of Security Holders
The Company held its Annual Meeting of stockholders on June 7, 2005. The following
actions were taken at the Annual Meeting:
Election of Directors
For
Withheld
423,518,827
3,526,704
375,805,463
51,240,068
423,425,373
3,620,158
378,068,185
48,977,346
Bernard Cammarata
Gary L. Crittenden
Edmond J. English
Richard G. Lesser
Robert F. Shapiro
Fletcher H. Wiley
Table of Contents
415,275,119
8,949,993
2,820,419
420,887,430
3,256,531
2,901,570
28,325,832
302,771,458
65,121,688
30,826,553
30,712,245
300,454,630
65,052,103
30,826,553
161,604,435
231,206,629
3,407,914
30,826,553
Item 6
Exhibits
3(i)
The Fourth Restated Certificate of Incorporation is incorporated herein by reference to Exhibit
99.1 to the Form 8-A/A filed September 9, 1999. The Certificate of Amendment of Fourth Restated Certificate of Incorporation is filed herewith.
3(ii)
The by-laws of TJX, as amended and restated through June 7, 2005, are filed herewith.
Table of Contents
31.1
Certification Statement of Chief Executive Officer pursuant to Section
302 of the Sarbanes-Oxley Act of 2002 is filed herewith.
31.2
Certification Statement of Chief Financial Officer pursuant to Section
302 of the Sarbanes-Oxley Act of 2002 is filed herewith.
32.1
Certification Statement of Chief Executive Officer pursuant to Section
906 of the Sarbanes-Oxley Act of 2002 is filed herewith.
32.2
Certification Statement of Chief Financial Officer pursuant to Section
906 of the Sarbanes-Oxley Act of 2002 is filed herewith.
Table of Contents
THE TJX COMPANIES, INC.
(Registrant)
/s/ Jeffrey G. Naylor
Jeffrey G. Naylor, Senior Executive
Vice President
Finance, on behalf of The TJX Companies, Inc. and as
Principal Financial and Accounting Officer of
The TJX Companies, Inc.
RESOLVED:
|
That this Board of Directors does hereby recommend and declare advisable the amendments to Article EIGHTH of the Corporations Fourth Restated Certificate of Incorporation as follows: |
-2-
THE TJX COMPANIES, INC. | ||||||||||
|
||||||||||
|
By: | /s/ Jeffrey G. Naylor | ||||||||
|
||||||||||
|
Name: | Jeffrey G. Naylor | ||||||||
|
Title: |
Senior Executive Vice President
and Chief Financial Officer |
||||||||
|
||||||||||
ATTEST: | ||||||||||
|
||||||||||
By:
|
/s/ Ann McCauley | |||||||||
|
||||||||||
Name:
|
Ann McCauley | |||||||||
Title:
|
Senior Vice President, General Counsel and Secretary |
-3-
1
2
3
4
5
6
7
8
9
10
11
12
1. | I have reviewed this quarterly report on Form 10-Q of The TJX Companies, Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: September 2, 2005
|
||||
|
||||
|
/s/ Edmond J. English | |||
|
||||
|
Name: Edmond J. English | |||
|
Title: President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of The TJX Companies, Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: September 2, 2005
|
||||
|
||||
|
/s/ Jeffrey G. Naylor | |||
|
||||
|
Name: Jeffrey G. Naylor | |||
|
Title: Senior Executive Vice President and
Chief Financial Officer |
1. | the Companys Form 10-Q for the fiscal quarter ended July 30, 2005 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||
2. | the information contained in the Companys Form 10-Q for the fiscal quarter ended July 30, 2005 fairly presents, in all material respects, the financial condition and results of operations of the Company. |
|
/s/ Edmond J. English | |||
|
||||
|
Name: Edmond J. English | |||
|
Title: President and Chief Executive Officer | |||
Dated: September 2, 2005
|
1. | the Companys Form 10-Q for the fiscal quarter ended July 30, 2005 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||
2. | the information contained in the Companys Form 10-Q for the fiscal quarter ended July 30, 2005 fairly presents, in all material respects, the financial condition and results of operations of the Company. |
|
/s/ Jeffrey G. Naylor | |||
|
||||
|
Name: Jeffrey G. Naylor | |||
|
Title: Senior Executive Vice
President and
Chief Financial Officer |
|||
|
||||
Dated: September 2, 2005
|