UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(mark one)

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended April 29, 2023

OR

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                     

Commission file number 1-4908 

The TJX Companies, Inc.

(Exact name of registrant as specified in its charter)

Delaware	04-2207613
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
770 Cochituate Road Framingham, Massachusetts	01701
(Address of principal executive offices)	(Zip Code)

(508) 390-1000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $1.00 per share	TJX	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒   No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ☐    NO  ☒

The number of shares of registrant’s common stock outstanding as of May 19, 2023: 1,149,238,467

The TJX Companies, Inc.

TABLE OF CONTENTS

PART I
ITEM 1. Consolidated Financial Statements	3
Consolidated Statements of Income	3
Consolidated Statements of Comprehensive Income	4
Consolidated Balance Sheets	5
Consolidated Statements of Cash Flows	6
Consolidated Statements of Shareholders' Equity	7
Notes To Consolidated Financial Statements	8
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	19
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk	28
ITEM 4. Controls and Procedures	29
PART II
ITEM 1. Legal Proceedings	29
ITEM 1A. Risk Factors	29
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	29
ITEM 6. Exhibits	30
SIGNATURE	30

2

PART I - FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

THE TJX COMPANIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

IN MILLIONS EXCEPT PER SHARE AMOUNTS

 

	Thirteen Weeks Ended
	April 29, 2023		April 30, 2022
Net sales	$	11,783	$	11,406
Cost of sales, including buying and occupancy costs	8,374		8,223
Selling, general and administrative expenses	2,238		2,094
Impairment on equity investment	—		218
Interest (income) expense, net	(37)		19
Income before income taxes	1,208		852
Provision for income taxes	317		265
Net income	$	891	$	587
Basic earnings per share	$	0.77	$	0.50
Weighted average common shares – basic	1,153		1,177
Diluted earnings per share	$	0.76	$	0.49
Weighted average common shares – diluted	1,165		1,189

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

3

THE TJX COMPANIES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

IN MILLIONS

 

	Thirteen Weeks Ended
	April 29, 2023		April 30, 2022
Net income	$	891	$	587
Additions to other comprehensive (loss):
Foreign currency translation adjustments, net of related tax benefit of $1 in fiscal 2024 and $1 in fiscal 2023	14		(59)
Reclassifications from other comprehensive income to net income:
Amortization of prior service cost and deferred gains/losses, net of related tax provisions of $0 in fiscal 2024 and $1 in fiscal 2023	0		4
Other comprehensive income (loss), net of tax	14		(55)
Total comprehensive income	$	905	$	532

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

4

THE TJX COMPANIES, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

IN MILLIONS, EXCEPT SHARE DATA

 

	April 29, 2023		January 28, 2023		April 30, 2022
Assets
Current assets:
Cash and cash equivalents	$	5,025	$	5,477	$	4,295
Accounts receivable, net	587		563		576
Merchandise inventories	6,441		5,819		6,990
Prepaid expenses and other current assets	496		478		565
Federal, state and foreign income taxes recoverable	46		119		54
Total current assets	12,595		12,456		12,480
Net property at cost	5,899		5,783		5,289
Non-current deferred income taxes, net	150		158		177
Operating lease right of use assets	9,177		9,086		9,067
Goodwill	95		97		97
Other assets	765		769		600
Total assets	$	28,681	$	28,349	$	27,710
Liabilities
Current liabilities:
Accounts payable	$	4,304	$	3,794	$	4,371
Accrued expenses and other current liabilities	3,954		4,346		3,811
Current portion of operating lease liabilities	1,609		1,610		1,576
Current portion of long-term debt	500		500		—
Federal, state and foreign income taxes payable	167		55		261
Total current liabilities	10,534		10,305		10,019
Other long-term liabilities	865		919		909
Non-current deferred income taxes, net	133		127		54
Long-term operating lease liabilities	7,867		7,775		7,777
Long-term debt	2,860		2,859		3,356
Commitments and contingencies (See Note K)
Shareholders’ equity
Preferred stock, authorized 5,000,000 shares, par value $1, no shares issued	—		—		—
Common stock, authorized 1,800,000,000 shares, par value $1, issued and outstanding 1,150,179,322; 1,155,437,908 and 1,172,711,116 respectively	1,150		1,155		1,173
Additional paid-in capital	—		—		—
Accumulated other comprehensive (loss) income	(592)		(606)		(742)
Retained earnings	5,864		5,815		5,164
Total shareholders’ equity	6,422		6,364		5,595
Total liabilities and shareholders’ equity	$	28,681	$	28,349	$	27,710

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

5

THE TJX COMPANIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

IN MILLIONS

 

	Thirteen Weeks Ended
	April 29, 2023		April 30, 2022
Cash flows from operating activities:
Net income	$	891	$	587
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	232		220
Impairment on equity investment	—		218
Loss on property disposals and impairment charges	4		4
Deferred income tax provision	16		12
Share-based compensation	34		27
Changes in assets and liabilities:
(Increase) in accounts receivable	(22)		(66)
(Increase) in merchandise inventories	(624)		(1,085)
Decrease in income taxes recoverable	73		61
(Increase) in prepaid expenses and other current assets	(15)		(33)
Increase (decrease) in accounts payable	507		(53)
(Decrease) in accrued expenses and other liabilities	(477)		(565)
Increase in income taxes payable	113		77
(Decrease) in net operating lease liabilities	(1)		(4)
Other, net	14		(34)
Net cash provided by (used in) operating activities	745		(634)
Cash flows from investing activities:
Property additions	(361)		(314)
Purchases of investments	(11)		(16)
Sales and maturities of investments	10		6
Net cash (used in) investing activities	(362)		(324)
Cash flows from financing activities:
Payments for repurchase of common stock	(492)		(607)
Cash dividends paid	(343)		(309)
Proceeds from issuance of common stock	28		18
Other	(30)		(33)
Net cash (used in) financing activities	(837)		(931)
Effect of exchange rate changes on cash	2		(43)
Net (decrease) in cash and cash equivalents	(452)		(1,932)
Cash and cash equivalents at beginning of year	5,477		6,227
Cash and cash equivalents at end of period	$	5,025	$	4,295

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

6

THE TJX COMPANIES, INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(UNAUDITED)

IN MILLIONS

	Thirteen Weeks Ended
	Common Stock
	Shares	Par Value $1		Additional Paid-In Capital		Accumulated Other Comprehensive (Loss) Income		Retained Earnings		Total
Balance, January 28, 2023	1,155	$	1,155	$	—	$	(606)	$	5,815	$	6,364
Net income	—	—		—		—		891		891
Other comprehensive income, net of tax	—	—		—		14		—		14
Cash dividends declared on common stock	—	—		—		—		(383)		(383)
Recognition of share-based compensation	—	—		34		—		—		34
Issuance of common stock under stock incentive plan and related tax effect	1	1		(3)		—		—		(2)
Common stock repurchased	(6)	(6)		(31)		—		(459)		(496)
Balance, April 29, 2023	1,150	$	1,150	$	—	$	(592)	$	5,864	$	6,422

	Thirteen Weeks Ended
	Common Stock
	Shares	Par Value $1		Additional Paid-In Capital		Accumulated Other Comprehensive (Loss) Income		Retained Earnings		Total
Balance, January 29, 2022	1,181	$	1,181	$	—	$	(687)	$	5,509	$	6,003
Net income	—	—		—		—		587		587
Other comprehensive (loss), net of tax	—	—		—		(55)		—		(55)
Cash dividends declared on common stock	—	—		—		—		(347)		(347)
Recognition of share-based compensation	—	—		27		—		—		27
Issuance of common stock under stock incentive plan and related tax effect	2	2		(15)		—		—		(13)
Common stock repurchased	(10)	(10)		(12)		—		(585)		(607)
Balance, April 30, 2022	1,173	$	1,173	$	—	$	(742)	$	5,164	$	5,595

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

7

THE TJX COMPANIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note A. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The Consolidated Financial Statements and Notes thereto have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. These Consolidated Financial Statements and Notes thereto are unaudited and, in the opinion of management, reflect all normal recurring adjustments, accruals and deferrals among periods required to match costs properly with the related revenue or activity, considered necessary by The TJX Companies, Inc. (together with its subsidiaries, “TJX”) for a fair statement of its Consolidated Financial Statements for the periods reported, all in conformity with GAAP consistently applied. The Consolidated Financial Statements and Notes thereto should be read in conjunction with the audited Consolidated Financial Statements, including the related notes, contained in TJX’s Annual Report on Form 10-K for the fiscal year ended January 28, 2023 (“fiscal 2023”).

These interim results are not necessarily indicative of results for the full fiscal year. TJX’s 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.

The January 28, 2023 balance sheet data was derived from audited Consolidated Financial Statements and does not include all disclosures required by GAAP.

Fiscal Year

TJX’s fiscal year ends on the Saturday nearest to the last day of January of each year. The current fiscal year ends February 3, 2024 (“fiscal 2024”) and is a 53-week fiscal year. Fiscal 2023 was a 52-week fiscal year.

Use of Estimates

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. TJX considers its accounting policies relating to inventory valuation, reserves for uncertain tax positions and loss contingencies to be the most significant accounting policies that involve management estimates and judgments. Actual amounts could differ from these estimates, and such differences could be material.

Equity Investment

In fiscal 2020, the Company acquired a minority ownership stake in privately held Familia, an off-price retailer of apparel and home fashions domiciled in Luxembourg that operates stores throughout Russia. During the first quarter of fiscal 2023, the Company announced that it had committed to divesting its minority investment, resulting in an impairment charge of $218 million representing the entire carrying value of the Company’s investment. Additionally, the Company realized a $54 million tax benefit when the Company completed the divestiture of this investment during the third quarter of fiscal 2023. See Note F—Fair Value Measurements for additional information.

Deferred Gift Card Revenue

The following table presents deferred gift card revenue activity:

In millions	April 29, 2023		April 30, 2022
Balance, beginning of year	$	721	$	685
Deferred revenue	381		384
Effect of exchange rates changes on deferred revenue	(1)		(3)
Revenue recognized	(444)		(443)
Balance, end of period	$	657	$	623

TJX recognized $0.4 billion in gift card revenue for both the three months ended April 29, 2023 and the three months ended April 30, 2022. 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.

8

Leases

Supplemental cash flow information related to leases is as follows:

	Thirteen Weeks Ended
In millions	April 29, 2023		April 30, 2022
Operating cash flows paid for operating leases	$	495	$	488
Lease liabilities arising from obtaining right of use assets	$	529	$	757

Future Adoption of New Accounting Standards

From time to time, the Financial Accounting Standards Board (“FASB”) or other standard setting bodies issue new accounting pronouncements. 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 it will either not apply to TJX or is not expected to be material to its Consolidated Financial Statements upon adoption, and, therefore, the guidance is not disclosed.

Note B. Property at Cost

The following table presents the components of property at cost:

In millions	April 29, 2023		January 28, 2023		April 30, 2022
Land and buildings	$	2,055	$	2,043	$	1,930
Leasehold costs and improvements	3,968		3,874		3,615
Furniture, fixtures and equipment	7,579		7,400		6,961
Total property at cost	$	13,602	$	13,317	$	12,506
Less: accumulated depreciation and amortization	7,703		7,534		7,217
Net property at cost	$	5,899	$	5,783	$	5,289

Depreciation expense was $0.2 billion for both the three months ended April 29, 2023 and the three months ended April 30, 2022.

Non-cash investing activities in the cash flows consist of accrued capital additions of $0.2 billion as of both of the periods ended April 29, 2023 and April 30, 2022, respectively.

Note C. Accumulated Other Comprehensive (Loss) Income

Amounts included in Accumulated other comprehensive (loss) income are recorded net of taxes. The following table details the changes in Accumulated other comprehensive loss for the twelve months ended January 28, 2023 and the three months ended April 29, 2023:

In millions	Foreign Currency Translation		Deferred Benefit Costs		Accumulated Other Comprehensive (Loss) Income
Balance, January 29, 2022	$	(488)	$	(199)	$	(687)
Additions to other comprehensive loss:
Foreign currency translation adjustments, net of taxes	(56)		—		(56)
Recognition of net gains/losses on benefit obligations, net of taxes	—		121		121
Reclassifications from other comprehensive loss to net income:
Amortization of prior service cost and deferred gains/losses, net of taxes	—		16		16
Balance, January 28, 2023	$	(544)	$	(62)	$	(606)
Additions to other comprehensive loss:
Foreign currency translation adjustments, net of taxes	14		—		14
Reclassifications from other comprehensive loss to net income:
Amortization of prior service cost and deferred gains/losses, net of taxes	—		0		0
Balance, April 29, 2023	$	(530)	$	(62)	$	(592)

9

Note D. Capital Stock and Earnings Per Share

Capital Stock

TJX repurchased and retired 6.5 million shares of its common stock at a cost of approximately $0.5 billion, including applicable excise tax, during the quarter ended April 29, 2023, on a “trade date” basis. TJX reflects stock repurchases in its consolidated financial statements on a “settlement date” or cash basis. TJX had cash expenditures under repurchase programs of $0.5 billion for the three months ended April 29, 2023 and $0.6 billion for the three months ended April 30, 2022. These expenditures were funded by cash on hand and cash generated from current and prior period operations.

In February 2023, the Company announced that its Board of Directors had approved a new stock repurchase program that authorizes the repurchase of up to an additional $2 billion of TJX common stock from time to time. Under this program and previously announced programs, TJX had approximately $3 billion available for repurchase as of April 29, 2023.

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

Earnings Per Share

The following table presents the calculation of basic and diluted earnings per share:

	Thirteen Weeks Ended
Amounts in millions, except per share amounts	April 29, 2023		April 30, 2022
Basic earnings per share:
Net income	$	891	$	587
Weighted average common shares outstanding for basic earnings per share calculation	1,153		1,177
Basic earnings per share	$	0.77	$	0.50
Diluted earnings per share:
Net income	$	891	$	587
Weighted average common shares outstanding for basic earnings per share calculation	1,153		1,177
Assumed exercise/vesting of stock options and awards	12		12
Weighted average common shares outstanding for diluted earnings per share calculation	1,165		1,189
Diluted earnings per share	$	0.76	$	0.49
Cash dividends declared per share	$	0.3325	$	0.295

The weighted average common shares for the diluted earnings per share calculation excludes 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. Such options are excluded because they would have an antidilutive effect. There were 6 million such options excluded for the thirteen weeks ended April 29, 2023. There were 5.1 million such options excluded for the thirteen weeks ended April 30, 2022.

Note E. Financial Instruments

As a result of its operating and financing activities, TJX is exposed to market risks from changes in interest and foreign currency exchange rates and fuel costs. These market risks may adversely affect TJX’s operating results and financial position. TJX seeks to minimize risk from changes in interest and foreign currency exchange rates and fuel costs through the use of derivative financial instruments when and to the extent deemed appropriate. TJX does not use derivative financial instruments for trading or other speculative purposes and does not use any leveraged derivative financial instruments. TJX recognizes all derivative instruments as either assets or liabilities in the Consolidated Balance Sheet and measures those instruments at fair value. The fair values of the derivatives are classified as assets or liabilities, current or non-current, based upon valuation results and settlement dates of the individual contracts. Changes to the fair value of derivative contracts that do not qualify for hedge accounting are reported in earnings in the period of the change. For derivatives that qualify for hedge accounting, changes in the fair value of the derivatives are either recorded in shareholders’ equity as a component of Accumulated other comprehensive (loss) income or are recognized currently in earnings, along with an offsetting adjustment against the basis of the item being hedged.

Diesel Fuel Contracts

TJX hedges portions of its estimated notional diesel fuel requirements based on the diesel fuel expected to be consumed by independent freight carriers transporting TJX’s inventory. Independent freight carriers transporting TJX’s inventory charge TJX a mileage surcharge based on the price of diesel fuel. 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.

10

During fiscal 2023, TJX entered into agreements to hedge a portion of its estimated notional diesel fuel requirements for fiscal 2024, and during the first three months of fiscal 2024, TJX entered into agreements to hedge a portion of its estimated notional diesel fuel requirements for the first three months of fiscal 2025. The hedge agreements outstanding at April 29, 2023 relate to approximately 50% of TJX’s estimated notional diesel fuel requirements for the remainder of fiscal 2024 and the first three months of fiscal 2025. These diesel fuel hedge agreements will settle throughout fiscal 2024 and throughout the first four months of fiscal 2025. TJX elected not to apply hedge accounting to these contracts.

Foreign Currency Contracts

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 April 29, 2023 cover merchandise purchases the Company is committed to over the next several months in fiscal 2024. 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. Merchandise is purchased centrally in the U.K. and then shipped and billed to the retail entities in other countries. This intercompany billing to TJX’s European businesses’ Euro denominated operations creates exposure to the central buying entity for changes in the exchange rate between the Euro and British Pound. A portion of the inflows of Euros to the central buying entity provides a natural hedge for merchandise purchased from third-party vendors that is denominated in Euros. TJX calculates any excess Euro exposure each month and enters into forward contracts of approximately 30 days' duration to mitigate this exposure.

TJX also enters into derivative contracts, generally designated as fair value hedges, to hedge intercompany debt. The changes in fair value of these contracts are recorded in Selling, general and administrative expenses and are offset by marking the underlying item to fair value in the same period. Upon settlement, the realized gains and losses on these contracts are offset by the realized gains and losses of the underlying item in Selling, general and administrative expenses.

11

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at April 29, 2023:

In millions		Pay	Receive		Blended Contract Rate	Balance Sheet Location	Current Asset U.S.$		Current (Liability) U.S.$		Net Fair Value in U.S.$ at April 29, 2023
Fair value hedges:
Intercompany balances, primarily debt:
	€	60	£	53	0.8807	(Accrued Exp)	$	—	$	0.0	$	0.0
	A$	150	U.S.$	105	0.7003	Prepaid Exp	4.9		—		4.9
	U.S.$	69	£	55	0.8010	Prepaid Exp	0.2		—		0.2
	£	200	U.S.$	244	1.2191	(Accrued Exp)	—		(6.5)		(6.5)
	€	200	U.S.$	213	1.0641	Prepaid Exp / (Accrued Exp)	0.1		(8.0)		(7.9)
Economic hedges for which hedge accounting was not elected:
	Diesel fuel contracts	Fixed on 3.0M – 3.8M gal per month	Float on 3.0M – 3.8M gal per month		N/A	(Accrued Exp)	—		(19.3)		(19.3)
Intercompany billings in TJX International, primarily merchandise:
	€	100	£	88	0.8811	Prepaid Exp	0.3		—		0.3
Merchandise purchase commitments:
	C$	821	U.S.$	610	0.7434	Prepaid Exp / (Accrued Exp)	4.9		(1.5)		3.4
	C$	27	€	18	0.6790	Prepaid Exp / (Accrued Exp)	0.2		0.0		0.2
	£	367	U.S.$	445	1.2147	Prepaid Exp / (Accrued Exp)	0.2		(13.3)		(13.1)
	A$	90	U.S.$	61	0.6829	Prepaid Exp / (Accrued Exp)	1.6		(0.1)		1.5
	zł	532	£	98	0.1833	(Accrued Exp)	—		(4.1)		(4.1)
	U.S.$	120	€	112	0.9271	Prepaid Exp / (Accrued Exp)	2.6		(0.1)		2.5
Total fair value of derivative financial instruments							$	15.0	$	(52.9)	$	(37.9)

12

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at January 28, 2023:

In millions		Pay	Receive		Blended Contract Rate	Balance Sheet Location	Current Asset U.S.$		Current (Liability) U.S.$		Net Fair Value in U.S.$ at January 28, 2023
Fair value hedges:
Intercompany balances, primarily debt:
	€	60	£	53	0.8807	(Accrued Exp)	$	—	$	(0.3)	$	(0.3)
	A$	150	U.S.$	105	0.7003	(Accrued Exp)	—		(2.6)		(2.6)
	U.S.$	69	£	55	0.8010	(Accrued Exp)	—		(0.3)		(0.3)
	£	200	U.S.$	244	1.2191	(Accrued Exp)	—		(5.5)		(5.5)
	€	200	U.S.$	213	1.0652	Prepaid Exp / (Accrued Exp)	0.8		(7.0)		(6.2)
Economic hedges for which hedge accounting was not elected:
	Diesel fuel contracts	Fixed on 3.2M – 3.6M gal per month	Float on 3.2M– 3.6M gal per month		N/A	Prepaid Exp	3.9		—		3.9
Intercompany billings in TJX International, primarily merchandise:
	€	146	£	129	0.8834	Prepaid Exp	0.8		—		0.8
Merchandise purchase commitments:
	C$	705	U.S.$	525	0.7449	Prepaid Exp / (Accrued Exp)	2.2		(7.1)		(4.9)
	C$	23	€	16	0.7064	Prepaid Exp / (Accrued Exp)	0.4		0.0		0.4
	£	299	U.S.$	356	1.1916	Prepaid Exp / (Accrued Exp)	0.1		(15.4)		(15.3)
	zł	507	£	91	0.1788	(Accrued Exp)	—		(3.6)		(3.6)
	A$	104	U.S.$	71	0.6819	(Accrued Exp)	—		(3.3)		(3.3)
	U.S.$	85	€	82	0.9634	Prepaid Exp	4.3		—		4.3
Total fair value of derivative financial instruments							$	12.5	$	(45.1)	$	(32.6)

13

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at April 30, 2022:

In millions		Pay	Receive		Blended Contract Rate	Balance Sheet Location	Current Asset U.S.$		Current (Liability) U.S.$		Net Fair  Value in  U.S.$ at  April 30, 2022
Fair value hedges:
Intercompany balances, primarily debt:
	zł	25	£	5	0.1816	Prepaid Exp	$	0.1	$	—	$	0.1
	€	60	£	51	0.8428	(Accrued Exp)	—		(0.1)		(0.1)
	A$	170	U.S.$	122	0.7180	Prepaid Exp	1.9		—		1.9
	U.S.$	75	£	55	0.7368	(Accrued Exp)	—		(5.6)		(5.6)
	£	150	U.S.$	204	1.3578	Prepaid Exp	15.5		—		15.5
	€	200	U.S.$	229	1.1462	Prepaid Exp	16.8		—		16.8
Economic hedges for which hedge accounting was not elected:
	Diesel fuel contracts	Fixed on 3.2M – 4.0M gal per month	Float on 3.2M – 4.0M gal per month		N/A	Prepaid Exp	53.7		—		53.7
Intercompany billings in TJX International, primarily merchandise:
	€	260	£	217	0.8331	(Accrued Exp)	—		(2.3)		(2.3)
Merchandise purchase commitments:
	C$	826	U.S.$	655	0.7929	Prepaid Exp	14.2		—		14.2
	C$	31	€	22	0.7108	(Accrued Exp)	—		(0.8)		(0.8)
	£	436	U.S.$	582	1.3354	Prepaid Exp / (Accrued Exp)	36.3		(0.2)		36.1
	A$	70	U.S.$	51	0.7264	Prepaid Exp	1.4		—		1.4
	zł	615	£	110	0.1796	Prepaid Exp	2.5		—		2.5
	U.S.$	152	€	136	0.8910	(Accrued Exp)	—		(9.0)		(9.0)
Total fair value of derivative financial instruments							$	142.4	$	(18.0)	$	124.4

The impact of derivative financial instruments on the Consolidated Statements of Income is presented below:

		Amount of Gain (Loss) Recognized in Income by Derivative
	Location of Gain (Loss) Recognized in Income by Derivative	Thirteen Weeks Ended
In millions		April 29, 2023		April 30, 2022
Fair value hedges:
Intercompany balances, primarily debt	Selling, general and administrative expenses	$	6	$	24
Economic hedges for which hedge accounting was not elected:
Diesel fuel contracts	Cost of sales, including buying and occupancy costs	(18)		44
Intercompany billings in TJX International, primarily merchandise	Cost of sales, including buying and occupancy costs	0		0
Merchandise purchase commitments	Cost of sales, including buying and occupancy costs	8		41
(Loss) gain recognized in income		$	(4)	$	109

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Note F. Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date or “exit price”. The inputs used to measure fair value are generally classified into the following hierarchy:

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

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

In millions	April 29, 2023		January 28, 2023		April 30, 2022
Level 1
Assets:
Executive Savings Plan investments	$	372.9	$	371.6	$	366.0
Level 2
Assets:
Foreign currency exchange contracts	$	15.0	$	8.6	$	88.7
Diesel fuel contracts	—		3.9		53.7
Liabilities:
Foreign currency exchange contracts	$	33.6	$	45.1	$	18.0
Diesel fuel contracts	19.3		—		—

Investments designed to meet obligations under the Executive Savings Plan are invested in registered investment companies traded in active markets and are recorded at unadjusted quoted prices.

Foreign currency exchange contracts and diesel fuel contracts are valued using broker quotations, which include observable market information. 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. Where independent pricing services provide fair values, TJX obtains an understanding of the methods used in pricing. As such, these instruments are classified within Level 2.

The fair value of TJX’s general corporate debt was estimated by obtaining market quotes given the trading levels of other bonds of the same general issuer type and market perceived credit quality. These inputs are considered to be Level 2 inputs. The fair value of long-term debt as of April 29, 2023 was $2.7 billion compared to a carrying value of $2.9 billion primarily due to the recent increase in interest rates. The fair value and the carrying value of the current portion of long-term debt as of April 29, 2023 were both $0.5 billion. The fair value of long-term debt as of January 28, 2023 was $2.6 billion compared to a carrying value of $